DUMP My ETHEREUM!? Yes!! But Only If “This” Is TRUE!!

Don’t blink, because we have a complex continuation
of last week, with two topics we ended it on…The Coinbase IPO & Ethereum Scaling. So How could these tie in together?? Wouldn’t you like to know? Well get ready to…cuz it’s time for Chico
Crypto!! So to figure this all out, we have to go way
back in History, back to when Ethereum wasn’t even launched…we have to look at the history
of Bitcoin Scaling & large Bitcoin Clubs, in 2015. So to begin…the history of Bitcoin Scaling,
starts with something called the lightning network…with the first draft published and
co-authored by a very important person. Joseph Poon So has Joseph’s creation, Lightning succeeded
for BITCOIN? No not at all…there are still major known
vulnerabilities, which Coindesk just covered in October…and Ethereum is being used as
a layer 2 for Bitcoin over the lightning network.

There is over 3.2 billion dollars in Bitcoin
moved to Ethereum’s to this day, while the lightning network, which has had the ability
to lockup bitcoin value for a year longer than ethereum…only has just over 25 million…or
not even 1 percent of the TVL. Lightning has been a failure so far…or people
wouldn’t be moving their bitcoin to ethereum at the rate it's moving.

And this lightning network, when launched
in 2018, was hailed as the savior for BITCOIN, giving it the ability to host LAPPs, lightning
apps, bitcoin competitors to ethereum dapps. And since there have been more than a few
built, but you haven’t heard of a single one, and based on the TVL…no one is using
them. So BITCOIN it got pooned. Lightning isn’t it…people are looking
more towards Ethereum….so I wonder where poon decided to move after 2016 and the launch
of turning complete smart contracts?? Of course Ethereum…. Joseph Poon and Vitalik Buterin authored the
Plasma whitepaper, for scalable autonomous smart contracts. The plasma framework to scale Ethererum including
from the bottom up…which is oh so similar to the lightning network….Coindesk covered
Plasma during it’s hype in August of 2017 and said “The system connects “child”
blockchains to the “main” blockchain with something called “fraud proofs.” It’s similar to the Lightning Network, an
idea Poon put forth a couple years ago for bitcoin, in that it’s a top-layer interacting
with a core blockchain below.

While the Lightning Network was limited to
work strictly for payments, Plasma extends the idea to more complex computations, like
ethereum smart contracts” So before we go any deeper…what’s the
problem with lightning & what’s the problem with plasma? It all comes down to proof…with Lightning
it’s the hashed timelock contract. What do these do? They require that the receiver of a payment
either acknowledge receiving the payment prior to a deadline by generating cryptographic
proof of payment or forfeit the ability to claim the payment, returning it to the payer. Basically a proof there was no fraud…. So how does Plasma work? In the whitepaper it says “This construction
is achieved by composing smart contracts on the main blockchain using fraud proofs whereby
state transitions can be enforced on a parent blockchain. Now did this work out? Well no, I showed in the video last thursday
that Plasma ended up being a dud, and the main research into it came from Plasma Group
with Jinglan Wang at the helm and OmiseGo now OMG network.

So bitcoin got pooned by the lightning network. Ethereum got poon jinged Plasma. But now, a third try, an optimistic one with
optimistic rollups…taking once again ideas from plasma, the poon & led by someone who
has already failed. The jing. HRMM?? Now, history my friends…history. Both Jing and Poon came out of nowhere and
got deeply ingrained with both bitcoin and ethereum quickly. Poon dropped the Bitcoin lightning network
paper in February of 2015, and as we can see Jinglan Wang was the executive director of
the MIT Bitcoin Expo in May of 2015. And then, both were at BITCOIN scaling conferences
and workshops throughout that year…as we can see there is poon and Thaddeus Dryja speaking,
on the lighting network…the 2 authors…and then there is jinalan also speaking…her
topic? Perspectives and challenges on interfacing
with china. Then suddenly they both transitioned from
Bitcoin to Ethereum at the exact same time, both becoming deeply involved with core Ethereum
members…Joseph Poon and Vitalik co-authored Plasma, and then Jinglan…heads the research
group “moving” the tech forward.

But….MIT, that school becomes VERY important. Cointelgraph wrote an article in January of
this year titled “Did Ethereum Silently Give Up on Plasma?” And in it they say “In a reply to Cointelegraph,
representatives from Plasma Group (now known as Optimism who Jinglan heads) noted that
there are a “multitude of competent teams pushing Plasma out,” referring to external
organizations such as Matic, the MIT’s Cryptoeconomics Lab, and Plasm.. MIT working on Plasma too? I wonder if MIT is gungho on the lighting
network as well…well of course MIT is, their media lab fully researching it to this day,
with Joseph Poon’s lightning network paper co-author, Tadje Dryja.

And Jinglan? She wasn’t just the executive director the
expo’s at MIT. As we can see from this 5 year old reddit
post, she was also the lead developer for their BITCOIN club. Now, I really don’t understand exactly what
is going on. But there’s been common denominators with
scaling failures throughout crypto history… Poon and Wang both get deep into the BITCOIN
community through MIT, lightning is dropped….and then they suddenly ditch bitcoin, Poon and
Wang, and transition to Ethereum and do the same damn thing, but call it Plasma. And here is where things get really interesting….august
of 2017, the Plasma whitepaper drops, as we know Joseph Poon and Vitalik write it. What happened the month before this Paper
was dropped? OmiseGo ran their ICO in July of 2017, raising
25 million of which TechCrunch covered and of course their with the OmiseGo team, including
Jun Hasegawa in initial Discussions is Joseph Poon and Vitalik Buterin.

Thus, Vitalik and Poon both became advisors
to the project…and we know what Wang Did, she headed the Plasma Group, which was heading
research into the scaling tech, of which OmiseGo helped “fund” which of course came from
that ICO money in 2017 Now the Plasma Group it was founded by Jinglan
in 2018…what I find oh so interesting, is that same year 2018, she did a deep dive AMA
with the tokendaily blog, and a question was asked “
“Which developments in the blockchain space do you look most forward too?” And here is what Jing said ‘Oooh I am excited
for CBC Casper to get cranking, and also really looking forward to some dope ass decentralized
naming projects to get off the ground! I would looove to see a TOR with financial
incentives, however or whoever implements that! I am also a fan of interledger, 0x, lightning,
and decentralized prediction markets (augur, you gonna launch soon or nah?) So many interesting things she gave away with
that one paragraph.

Number 1, she didn’t even mention Plasma
as a scaling solution she was excited about…which I find is hilarious. You wanna know what she was a fan of though
in 2018 over plasma?? She said it…Interledger. Ya Interledger, the tech used with Ripple
XRP. UGGGHHH BARF?? And in 2018, her True colors showed in my
opinion. July of 2018, she writes a plasma cash blog….hey,
nice research. But then 2 months later she went and wrote
this article in september 2018 “An Illustrated Primer on Cross Currency Swaps in HTLCs…remember
hashed time locked contracts??? From Joseph Poon’s lightning? Well look who she freaking thanks at the bottom….Evan
Shwartz…co inventor of the interledger protocol, aka team da ripple XRP and of course she references
the interledger protocol.

Then 1 month later in October of 2018, Interledger’s
Evan wrote this blog “Layer 3 is for interoperability” . Who is thanked at the bottom? Of course Wang is. So, obviously Jinglan was more bullish on
Interledger over Plasma, and there was a relationship there….yet she became the head of the group
researching plasma and moving it forward??? Does that make sense??? Well none of this does really….. Or will it?? Well let’s just go back to that Blog Post
from Jinglan on Hashed Time locked Contracts…who else does she thank? Including saying watch out for their more
in depth blog post on the topic? Dan Robinson…. Dan Robinson, who we can also see worked for
Plasma Group, as a research and development writer…but he also was apart of something
else…a research partner at Paradigm…very important, but let’s go to his announcement
blog post, he say’s what he is going to work on with Paradigm…..

Bitcoin, Ethereum, Plasma, Interledger… Hrmmmmmm? So now who is Paradigm. Well it’s the venture arm of two very importante
individuals…Matt Haung and Fred Ehrsam, co-founder of Coinbase & current board member. Well first let’s talk about Matt Hauang..he
is the son of Haung Qifu, powerful private investor, a retired hedge fund manager, and
a former finance academic at none other than MIT.

Hedge Fund management…for Goldman Sachs,
the Asia Pacific Region, and in the mid 90s, he personally managed assets that totalled
more than China’s GDP. Now if you go to wikipedia on him, in his
research it says…”Additionally, he has expanded the applicability of auction theory
to financial markets…now go back to Jinglan Wang’s last medium post…it was titled
none other than “An Introduction to Auction Theory: Blockchain Edition” She was trying
to bring Chifu’s auction theory to blockchain…obviously, Matt, Qifu, and her are closely tied…. Well ya, because Paradigm has done some very
telling investing. In January of 2019, Plasma Group and Jinglan
got Paradigm to be a part of the 3.5 million dollar initial funding round with Optimistic
roll ups as the goal…Who else has been funded by Paradigm? Those using rollups to scale…Uniswap…from
their series A round blog post, they say initial funding was raised by Paradigm…and second
round funding included them too, as well as Coinbase tied Andressen Horowitz. You won’t find it online, but Paradigm is
also heavily invested in synthetix, those currently in limbo with the optimistic testnet. And Fred’s company he co-founded Coinbase? What are they doing? Well they are supporting Optimistic too… Although there is one single investment from
Paradigm, which is oh so interesting…March 15th 2018, Paradigm led the 9 million dollar
raise for Cosmos creator….Tendermint.

Who is the only chain using Tendermint to
scale??? BINANCE smart chain, the now EVM compatible
chain, with nearly half a billion locked up in it, downright smothering the others…and
many of China’s blockchain projects are going with Tendermint including China’s
own BSN. I’ll let you finish the story on your own. Cheers I’ll see you next time!.

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