Scale Eth to 10k!? Yes! But Only If “THIS HAPPENS”

Eggg yolk, what’s cracking with my favorite
chaps, the chico army & if you're new, and you wanna join that crew, subscribe, and drop
the title of viewer of the tube. My name is Tyler the host of the crypto channel
whose content, is little too metal for most, kind of like this guys bday rendition. Well, BITCOIN is holding its ground within
the range. 10k to 12k, working our way towards the middle
of it, and possibly revisiting the top of this range. Back in late july and august, when we were
bouncing around the top of the range, around 12k….altcoins were oh so bullish….if we
are able to slowly push back to this upper level & even break 12k once again, I foresee
a similar thing going down…..

Because you shouldn’t fight the trend, and
the trend has been pushing right back up for what crypto movements are currently tied to. The stonk market. DowJones, right back up after a crushing september…as
you can see the peak was just over a month ago, just above 29000 points…I don’t doubt
for one second this month we will creep right back up to that level, and possibly beyond. That is good for crypto, as down with the
stonks would mean down for us too unfortunately.

Plus Bitcoin and crypto got some of the worst
news possible, and shook it off. BitMEX founder, Arthur Hayes and the other
founders were charged with major financial crimes and the future of the derivatives exchange
is really up in the air. That news would have come out in 2017…it
would have crushed BTC. So, don’t count out another mini run coming
this month….and if it does happen, it’s not going to look at all like what we just
experienced this summer. There are many other factors at play, right
in the spotlight & much of it boils down to what’s going on with Ethereum, in my personal
opinion.

DeFi interest was surging during the summer…from
July to August, TVL total value locked up in DeFi jumped from basically 2 billion to
4 billion. Then from August to September, it jumped from
4 to almost 10 billion. And from September to today, even though prices
have been getting crushed, TVL still pushed up…it dipped on September 5th to the low
of 7.7 billion, but today over 10.8 billion. DeFi has been trending monthly, setting higher
highs in TVL for nearly the entire year…and that is all going on…the ethereum mainchain. Which clogged her right up, creating a pain
to get transactions to go through, and putting transactions fees to levels never seen. Now as you can see from the average transaction
fee for Ethereum in it’s history, it had been 2 years since fees got to ridiculous
levels, the “crypto kitty” days. 2 years is a long time, people forget, and
the newbies didn’t even know this could happen. This issue wasn’t really an issue until
the summer of 2020 began. Now the issue is known, and in the spotlight.

People understand that DeFi & ethereum as
a whole, can’t do what it’s supposed to do, with the current base layer design. Decrypt covered this topic from none other
than Vitalik Buterin just 4 days ago. Article title “Vitalik Buterin: Ethereum's
'Nearly Unusable' for Many App Types”…and the article references this post, from Vitalik
in an ethereum developer thread. Vitalik says “The L1 of Ethereum is nearly
unusable for many classes of applications, and there’s no non-L2 path that can get
us to scalability in the short-to-medium term” He references he paid over 17 dollars in fees
to make a bet on Augur. Then below…it’s all about what, what’s
mentioned 8 times by ole vitalik in the next paragraph??? Like I mentioned in the past, one of the kickers
for the next RUN. Layer 2, L2. So what is Vitalik’s choice for “Layer
2”?? Is it ethereum plasma? Is it OMG Network? Well in that same thread below, he talks on
this….The challenge with ZK rollups is that at present they’re not capable of supporting
general-purpose EVM computation “so at present we have to work with the optimistic variety.

And the optimistic constructions are not that
bad IMO; they suffer from some of the drawbacks of plasma, but not all; in particular, unlike
plasma, optimistic rollups are easily extensible to generic EVM applications, which makes them
much more suited to “scaling ethereum” generally, whereas plasma is only effective
for payments, DEX and a few other use cases. Obviously he likes the optimistic rollups,
and that is confirmed further, as Vitalik yesterday on Twitter put out a graphic scaling
roadmap, which explicitly mentions them, in the map and tweets multiple times. But…when are they coming, as you can see
the roadmap of course has no dates. Well in the tweet thread he explains when
rollups, could go live?? He puts out the original Eth roadmap, phase
0 to 2. Phase 0, proof of stake, phase 1 sharding
of data, phase 2 sharding of transactions.

And below he says “That said, rollups are
already here or coming soon even before sharding” Hmmm, they are here or coming soon? Vitalik, come on bud, we know roll ups aren’t
officially here yet….that is why, no one can share an actual date of when they will
go live…don’t get me wrong, I’m optimistic about optimism, but the reality of the situation
is they are not even close to ready for general purpose smart contract deployment. Now, one of the leaders in this Optimism space
is Optimism PBC who is working on their own rollup chain, called optimistic ethereum. I covered last week, that they would be 1st
be partnering with Synthetix, and pushing them onto the testnet. Well some good info has come out on this,
so we have to cover it. Kain Warwick, founder of synthetix tweeted
this on October 1st “Optimistic Ethereum will be the DeFi chain over the next 12-24
months. Nothing is even close. Mainnet is coming and it’s going to melt
your f’ning faces.

One of their head engineers should have a
sneak peak for you all very soon… Sounds good right? Well always Twitter competition drama…Steven
Goldfeder retweeted this and said “Finally I agree with Kain. Nobody is close to Optimism. Only they have: No Fraud Proofs, Fully trusted
Sequencer, No benchmarks & No protocol spec. Join Kain and build on Optimism today! Oh wait…you can't because they don't support
contract deployment. Ouch! Then below, Chainlink god said this “Seeing
Kain freak out over this post and throw ad hominem attacks, rather than disputing is
pretty bizarre! What gives, can we not have an open discussion
regarding the fact Optimism is still missing key components required for a secure ORU? The snarkiness is a given in crypto.

So chainlink god, you gotta know this somehow
relates back to that stanky lank, and it does as Steven Goldfeder is an IC3 post doctorate
for cornell tech, the cornell connected to chainlink. They are saying that optimism isn’t ready… As they have an optimisim competitor, Steven
is also the co-founder of offchain labs, who have created arbitrum, and the arbitrum rollup
& going back to Steven’s tweet thread, below we can see he says “We launched a version
of Arbitrum with fraud proofs 7 months ago.We released a new version a few weeks back that's
feature complete with fraud proofs, arbitrary contract deployment and lots of other goodies. Try it out here http://developer.offchainlabs.com. Testnet V2 this month. Soo to me regarding rollup’s, arbitrum vs
optimism. Arbitrum takes the cake. They have been in testnet v1 already for some
time, as we can see from this medium post written by Steven, since February of this
year, 8 months. Optimism, and their testnet just released,
with a cut off on who can participate, just 1 player, synthetix. Arbitrum is open for anyone to dive into and
deploy.

But you guys, this is not the end all answer,
rollups, it’s has to be a combination of everything, rollups, sidechains, statechannels,
sharding. Offchain lab’s Steven even know this. In his February testnet medium post he said
this regarding rollups “Rollup is awesome — particularly for “open world” smart
contracts which don’t have a fixed set of players. But, it turns out that for a large class of
contracts, we can move even more off-chain, achieving greater scalability and even lower
costs. We’ve written a lot about Arbitrum Sidechains
and Channels, and plan to launch them later this year. Rollups, are good for erc20 tokens, and that
standards based smart contracts. But it isn’t good for things like NFTs,
fixed set of players, identities, fixed set of players, which means gaming and DAOs, fixed
set of players.

So, I know everyone wants xdai to win the
Reddit scaling competition, and I think they should, proving their mainnet ready today
by already monetizing the test tokens, moons & bricks. But it’s highly possible Arbitrum takes
it, as it’s highly suited when mainnet ready, for something like reddit’s community tokens,
which are erc20, supporting the full basket of smart contracts related to that token standard. And diving into Arbitrum’s actual reddit
submission, they go deeper into why they are the chosen “rollup” solution….user hka
lodner who posted the submission says this in response to a user saying “Wasn't there
a successful test on L2 with SNX using the OVM?” “The SNX demo was awesome, but it only used
certain centralized components of the OVM and was not actually using a rollup whereas
Arbitrum is a fully decentralized optimistic rollup implementation.

We're still on testnet so not quite ready
for primetime, but all the components are in place for anyone to be able to launch their
own secure decentralized optimistic rollup chain using Arbitrum. So he says, not quite ready for primetime,
arbitrum, which is farther along than optimistic ethereum. Which means not ready to win the competition,
which needs to be on a mainnet… So… IDK, what the delay from Reddit was all about,
they last posted they are still finalizing the winner, and need more time to look through
the solutions. Are they waiting for something like optimism
to be ready?? I’ve gone through the submissions in this
video, give it a watch if you haven’t by clicking the tag above…from that video only
ones who could be ready today, in my opinion, are xDai & Matic both sidechains & now I’ve
learned Arbitrum with their rollup could be ready here soon.

But remember politics, and OMG and plasma
could slide in there with it’s connections to the ethereum foundation. Cheers I’ll see you next time!.

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