Skip to content
HEX
Search
About
Back to results
Bitcoin Ethereum and more with DataDash Nicholas Merten
Oct 24, 2020
Open on YouTube
Copy link
Follow along
· transcript tracks the video
Transcript
Show
Load earlier
40:24
wrote solidity
40:25
and who wrote most of the ethereum code
40:27
he's got 150 million dollars locked up
40:29
because he had a multi-sig failure that
40:31
he wrote
40:32
and if anyone in the world was going to
40:33
get bailed out he is the most inside
40:35
human being possible in the world if
40:37
anyone could get bailed out they would
40:38
bail him out they're not bailing him out
40:39
so there's 150 million dollar proof it's
40:42
probably more now because price has gone
40:43
up
40:44
that they're not going to be going
40:44
through a chance they're not they're not
40:46
rolling back
40:47
so we've got proof that they're not
40:48
rolling back we've got
40:50
scaling now we've got bounty programs
40:54
we've got more decentralized mining
40:57
if you want to mine uh ethereum you can
41:00
do it with your video card
41:01
if you want to mine bitcoin
41:02
yourself you can't you need to go get a
41:04
thousand dollars and send it to some
41:05
world
41:06
weird country you don't live in and hope
41:07
they send you the mining machine on time
41:09
and hasn't been
41:10
tested too long and milked for its
41:11
profitability and then you finally get
41:13
it and then you can contribute to the
41:15
bitcoin network
41:16
bitcoin has 42 percent of all of its uh
41:19
economic energy and 2000 addresses
41:21
centralized as something like 60 or
41:23
70 percent of the mining is in china
41:24
could you think of a more uh
41:26
censorship-friendly country
41:28
than china that would be more likely to
41:29
cause network problems since
41:31
they're like the grand champion global
41:33
grand champion of filtering internet the
41:35
great fire wall of china
41:37
phil's filtered more internet than
41:39
anything else ever in history so
41:41
that is the absolute not place where you
41:43
want your hash power right
41:45
so what does ethereum have ethereum has
41:47
already got tested a proof of work
41:49
change if the miners get shitty
41:51
binders get too shitty we're changing
41:52
the proof of work you guys
41:54
and and they've already like put forks
41:57
in the code where the community said all
41:58
right miner's gonna get paid less
42:00
and then they just pay the miners less
42:01
and the miners take it awesome
42:03
that's a better setup that's a better
42:05
ecosystem so you're getting higher
42:07
throughput
42:07
with less pollution with a more
42:09
decentralized
42:10
mining ecosystem with more backup plans
42:13
that are already tested
42:14
to take over if the miners get shitty
42:16
with
42:17
scaling already done with bug bounties
42:19
already done
42:20
and and more developers and working on
42:23
smarter stuff all the zk roll up guys
42:25
all the scaling guys are all working in
42:26
ethereum ecosystem i mean some of them
42:28
are doing
42:29
they're like other like ethereum killer
42:30
players one thing i wanted to
42:32
ask you about richard sorry on that
42:33
pitch i think you get a pretty good
42:35
pitch overall on it and even tackle it
42:36
on a few things
42:37
yeah yeah sorry okay so one thing i
42:40
wanted to ask you here in this case and
42:41
actually maybe you can build on this in
42:42
the sense of scalability is i remember a
42:44
while back you know you were pretty
42:46
like especially back in the day when
42:47
you're really big on bitcoin big on
42:49
proof of work
42:49
yeah obviously with you 2.0 i'm in the
42:51
boat that it's going to take a long time
42:53
to get there sure
42:54
um everyone i've talked to yeah um so
42:55
basically i'm just curious do you think
42:57
in this case like
42:58
going to proof of stake is a better step
43:00
for ethereum in this case or do you just
43:01
think it depends maybe
43:03
yeah i i think it will like i think it'd
43:06
be very late because all software is
43:07
very late and it always has been and
43:09
always will be
43:10
so i think it'll be very late i do think
43:13
we already have proof that federated
43:16
models with reduced security reduce
43:18
censorship resistance but higher
43:19
throughput
43:20
are totally functional for instance es
43:22
eos is just
43:23
you know 21 guys deciding whether they
43:25
want to let you keep your money or not
43:27
and that's it and usually they do and so
43:30
look that system hasn't failed yet
43:31
we have other proof of stake and
43:33
distributed proof of stake systems that
43:34
have
43:35
not been hacked which just show that
43:38
this particular vector of attack
43:40
it's not a thing and by the way proof of
43:42
work it's
43:43
actually just proof of stake in electric
43:46
bills and
hardware
bills
43:47
yeah so it's just an alternate proof of
43:50
stake
43:51
the the difference is that you don't
43:52
have like the nothing at stake attack
43:53
where you say all chains are valid but
43:55
really
43:56
only one of them was but since you said
43:57
yes to everything you got paid anyway
43:59
like so there's but you cure that
44:01
through slashing which is people put up
44:02
a security bond and if they catch you
44:04
saying that ain't right
44:05
they prove it then they take your money
44:07
so so it's like
44:10
there's also problems with the with the
44:12
economics so hex solved staking
44:14
they're still trying to figure staking
44:16
out from an incentive perspective so
44:17
they're trying to decide how much you
44:19
should get paid
44:20
right and there's risk if you have any
44:22
type of
hardware
downtime you're losing
44:24
money
44:25
if you have a cosmic ray do a bit shift
44:28
on your cpu you're losing money like and
44:30
if you see the test nets people have
44:32
lost money
44:33
on the test nets and they just end up
44:36
getting
44:38
so if you want to vitalik has a
44:41
video called so you want to be a casper
44:42
validator and it explains all the ways
44:45
and
44:45
it's really actually hard and it's a job
44:48
so the difference
44:49
like staking hex you just lock it and
44:51
then you don't have to do anything
44:52
but staking eth you have to run a server
44:55
farm
44:55
and keep the uptime and hope that
44:57
nothing goes wrong or you will
44:58
lose money and running keeping computers
45:01
up
45:02
it's a full-time job it's not easy at
45:04
all and because people hand that work
45:06
off to other people and introduce a
45:07
centralization
45:09
so it's like i don't care if it works or
45:10
not like i'm happy with the way ethereum
45:12
works now yes we have these spikes for
45:14
fees
45:14
but those spikes for fees cause more buy
45:16
pressure and cause the price to go up
45:18
so when did when did bitcoin make
45:20
all-time highs when fees were at
45:21
all-time highs
45:22
and when did ethereum make all-time
45:23
highs when fees are all-time highs
45:25
so all-time high fees is the price you
45:27
pay for bull run
45:28
so for me it's like an okay trade um
45:31
is if we can get usdt onto more l2 stuff
45:35
because it's not decentralized anyway
45:37
they they print by accident a billion
45:39
and then take it back away they've done
45:40
that
45:41
like oops we printed an extra billion
45:42
are bad we'll just delete this that's
45:45
how secure that system is
45:46
since it's fake secure anyway you can
45:48
put that on l2
45:49
no problem and then that would take away
45:51
about 25 of the transactions off of
45:53
ethereum
45:53
like this and those transactions don't
45:55
actually add value to the ethereum
45:56
network
45:57
because they used to run an omni and
45:59
omni only did 200 a day volume
46:01
didn't do for the omni price so
46:02
ain't doing for the etherium price
46:04
so i wouldn't i would love to see the
46:05
tether transactions
46:06
offloaded onto an l2 then they would
46:09
leave more space for everybody else that
46:10
really needs the decentralization
46:12
and then if we could get uni-swap which
46:13
i think is like 60 percent
46:15
of all of the gas status now uniform v2
46:19
if we get that onto uh an l2 of some
46:21
sort
46:22
then that would help it's literally
46:23
going to be all we need man in order to
46:26
buy time until some kind of layer two
46:27
solution that's the thing that i i was
46:29
kind of talking to people about is it's
46:30
like
46:30
i think so many people are hyped up
46:32
about la um they're excited about
46:34
2.0 but the point i constantly bring up
46:36
is that any investor that i talk to any
46:38
ether developer
46:40
anyone in the community that actually
46:42
has a know of what's going on
46:43
and is realistic and not overtly
46:45
optimistic is saying that this is going
46:47
to be
46:47
even vitalik he said it on the interview
46:49
with peter mccormack this is going to be
46:51
something over the next few years
46:52
that we're looking to do like so this is
46:54
not coming in 2021 maybe
46:56
you don't need it like the works
46:58
great but that's the thing
46:59
you know exactly it's layer two that's
47:01
layer two is the interest point here and
47:03
the problem is
47:04
it was really to be honest richard what
47:06
i looked for over these last few years
47:07
is i know it's going to be very
Load later