chainlink vs ethereum redditThis Months Top Ethereum News, Innovation & Development – April 2020

chainlink nft floor price chainlink linear chainlink vs ethereum reddit This Months Top Ethereum News, Innovation & Development – April 2020

hi guys thanks for tuning in to another episode of Nuggets news or our monthly aetherium update with our friend Anthony so thanks for joining us again Anthony or good thanks for having me again well I think our last months updates are to get a bit of traction theres so much news to get through before we dive into it all and we will try and timestamp this episode guys within a few hours of recording and whatnot as well anything in particular you want to cover just from that sort of general overview of whats been happening in the past month its been crazy the last few weeks in aetherium theres been so many new projects launching so much I guess like drama as well we saw a few few different bugs and and kind of exploits lets latch hacks happening defi which I think at this point in time its like par for the course unfortunately I think theres gonna be I like to call them sacrifices made to like the defy gods so that people learn and you know we improve the contracts and everything like that but yeah I guess were gonna dive into a lot of whats happened over the past few weeks so pretty excited to do that yeah I think weve kind of touched on that last time as well that it is as you say par for the course but its when we find these bugs if its sort of in that the beadors and theres backup mechanisms to stop it getting nasty I think my getting better at that but still were talking large numbers a lot of the time because of how quickly defy is growing yeah Id much rather get caught yeah as you said in like the the alpha beta phase of a protocol when its launched rather than it get caught when the protocol is like you know millions in it like we saw I guess happened with d-force right it had 25 million in and back quite drained overnight and you know in a twist of fate that all got well most of it got returned which is which was quite funny as well but thats not always gonna happen right that 25 million dollars is pretty much gone for at least for at least a day until the the hacker was like oh Im gonna return all the funds however sent and yeah I do want to start off there but I guess Ill just say from my point of view looking at financial markets and whats going on in defy this talk of the u.s. having to go negative with their interest rates soon you know even if defy rates have come down a little bit with their savings rates to me thats always been the final penny to drop once we have negative interest rates in the US and it may be Australia has to follow suit but youve basically got them sort of everywhere all the big economies then theres just so many more reasons for people to learn how to use this cool little app or this data the other once theres negative interest rate so all the stars are kind of aligning for defy in the background even though crib dozing a bit of a nothing sort of market at the moment and whatnot as well but some lets start off with that story you just touched on we had another defy hack you know products called iron bitcoin which is one of those sort of ERC 20 versions of bitcoin so we can use it on a theorem and from what I read the hacker didnt cover his tracks well so did take it from there yeah yeah so apparently he leaked his IP address when he when he did the hack didnt use like a VPN or anything like that so and then I think he got scared or might have been a group of people we dont know exactly who it was but they you know they might have got they might have got scared and be like oh no like weve been caught we better just return the funds and everything will be okay since then we havent heard too much the force team is actually been pretty quiet lately as well I think theyre licking their wounds trying to make sure that everyone is made whole after the hack and everything like that I think this is same thing that happened with bzx right where the exploit happened you know there was all this drama for a few days and then they went quiet and theyre licking their wounds and since then their protocol hasnt really grown much unfortunately while obvious reasons I guess and I think the same is gonna be happening with Dean forces lend eff me project because they have other products but that was their lending product so yeah it was it was very unfortunate when that happened but I guess like they got really lucky with the funds being returned yeah so Im Bitcoin for those people at home youve probably heard of like wrapped a theory more raps Bitcoin when we put in a RC xx version this was another version of that I think you know last months episode we touched on these different flavors we might have also touched on the the pies so you can bring together these different versions of a theorem and make a token out of them so they have four different types that hedges the risk so this sort of its its the assets made for this exact reason and then it played out that way so did you see what sort of happen behind the scenes there with the Bitcoin pie and like how that affected it yeah so I guess like the the Bitcoin pies theres like a project called PI del Sol make I guess a similar to sets in a way where its like a basket of kind of tokens and yeah the logic is like I guess the BT C++ basket that they call it the logic is that you have multiple tokenized be TCS or big coins in one basket and that no that gives you less risk because you know its may not exposed 100 percent to one of these tokenized bitcoins so I didnt look into exactly what happened with with the the pie itself but I think it didnt work to like hedge the risk there but they did have iron BTC in the pie so that were affected by it every protocol was affected by that that had Im BTC Im even uni swap had a market for iron BTC that got exploited the night before the d-force kind of stuff happened and it was even listed on the Uni shop front end because it was assumed that Im BTC is not a scam or anything its actually a token thats created by Im token which is like a popular mobile wallet so thats their product so but what ended up happening I think with d-force was that they didnt when they saw you know when you see the Uni swap stuff happened with Im BTC that was that was um still exploitable in other protocols so default should have paused their protocol and removed Im BTC so that this hack couldnt have happened but they didnt do that unfortunately for one reason or another I havent seen them give any reasoning behind that and thats why we you know this massive kind of hack happened just the next day okay cool so definitely something again were projects we dont really have a standard for maybe a big red button that you push to let everyone in d5 space know that hey you know we need to close this down or it can get bad sort of things so yeah tying on from that weve seen a few fluctuations so I think that like the dye us DC pair both should be a dollar and thats been fluctuating I think got out to like a dollar eight recently so Im sort of interested in tying these different projects together because theres lots of markets now and you could even make a pie like we just described out of the different stable coins and Im wondering if theres also like a set or a smart contract where surely theres ways we were going to arbitrage this and get better at keeping things of the dollar yeah theres I think theres lots of projects trying to do that at the moment I know curve finance is a very popular project at the moment theres theres I think another one coming out called shell protocol theres also one that Im advising called M stable thats trying to do something like those well theyre not public or anything other than over product but theyre in early stages of development and I think yeah definitely theyre gonna help to bring this stability to these to these different stable coins but in the case of die being off its peg still I think its still at a dollar two or something off its peg is simply because its been known for a while that the demand for opening CDPs or vaults to generate dye does not scale with the demand for dye theyre two different you know parties like people who want died dont necessarily want to open evolve its like for me I want to trade him died but I dont want to go and open a vault or a city P and take leverage out just to do that so thats where the scaling issues come in weathers you know too much die or not enough die to make the peg you know stay at one dollar thats why it typically dies referred to as a soft peg because theres not like something that you can route theres not its not like us DC which is like a hard peg where you know that coin base has $1 backing up that one u.s. they see in their bank accounts yeah and I know the dye savings rates been reduced to almost zero lately there are only other like on their roadmap what are the incentives because you know we dont want die not to be worth a dollar as we scale yeah I think that at this point in time they really want people to be opening up more of these CDPs left vaults and thats why theyre adding more collateral types so we saw them at the maker system had us DC to to make systems to be able to uh for people to Harbor tribes that spread essentially between the stable coins and then theyre going to be adding I think linked next they were talking about theyve already got basic attention token there so I feel like theyre gonna keep adding more and more assets so that people can kind of unlock the assets and generate dye with it whether thats the leverage or for any other reason so thats definitely what I think were gonna see a lot of from make over the next few months to fix this die peg yeah that sort of leads into the next thing that we want to talk about and thats these defy decentralized protocols that are integrating sort of semi centralized coins so for the maker system to be fully decentralized and then integrate us DC which is you know it sort of relies on banks at some point in time if theres a large amount of money that gets frozen and its you know not redeemable whatever reason that can harm smart contracts then the other day who we saw compound say theyre gonna integrate tether so theres all this sort of a little bit of weirdness going on theres mixed feelings in the community a lot of the time what are your thoughts on of this yes so its its a hot debate right now for sure I think in general the defy term is more of a brand marketing term than a descriptive term pretty much like everything on that could be considered DFA is not decentralized right um you know you knew swap is pretty much like one of the only protocols that can be considered decentralized at this point in time and I think that the the more people that realize that dfi is just a marketing brand term at this point the better because I like to refer to these protocols as like open finance right because theyre open to everyone even if youre not even if youre banned from using the front end say youre in the US or something you can still use it through the smart contracts right on aetherium so its still open its more way more efficient and way more effective than the current traditional financial system even if those kind of centralized restrictions are still there so I think that you know cuz something like compound adding tether makes sense from a growth perspective for sure because tethers like I think 10 times more liquid than us they see in terms of like how much sorry 10 times bigger market cap and obviously a lot more liquid it sounded a lot more exchanges than us DC is so from a growth perspective it makes perfect sense but from a systemic risk perspective yeah its its dubious because theres being drama around tether for many years now are they it came out that it wasnt actually back the one-to-one not not too long ago so were seeing this play out now where some people are voting and saying no I dont want tether added to compound do their governance system but theyre theyre the minority I think its like 90 percent for 10 percent against right now in terms of the weight the weighted voting but yeah its its a hot debate and I think that did you know defies the goal that fully decentralized finance is is the goal but like its not gonna work for every protocol you know thats set like weve got you SDC in most of the sets right so there are going to be centralization factors and then Oracle is at at the end of the day of every project uses articles which are pretty much like mostly centralized at this point in time as well yeah I know coinbase out of there Oracle price feed which Im sure is going to get integrated into chain link as well coin base I mean theres that famous tweet where Bryan Adams Bryan Adams Bryan Armstrong said that everything else is a distraction and sure enough yeah he came around and hes actually I think also been quoted as saying that he likes it fear more than Bitcoin something along those lines then recently we saw them add more coins and then the focus became very you know I had my list of coins I think theyre going to add and now all the leading AARC 20s and now the integrating D fine and they integrate the etherium name service so Cuomos very favorably looking upon defy there yeah yeah Queen base is a friend to a theorem and defy I think we have like a few exchanges that really arent let a very hostile that by Nance is that the top one for me theyre trying to directly compete with aetherium right which is fine like every exchange has their own agenda at the other day but I feel like Boehners trying to compete with every everything alright they try to like you know get as big as possible but coinbase is definitely doing a lot of good for defy theyre integrating DFA apps into the mobile wallet app theyre doing the USD C bootstrap fund where they actually inject liquidity into different defy protocols as you mentioned theyre doing their own Oracle now which is really really cool so its funny you just watching decentralized players and place their bets essentially like a chess game its like Im gonna be on a theorem Im gonna be for myself or Im gonna be like a Bitcoin sort of thing yeah I still saw that I have these worries as the etherium flash crash down to like zero that was only in the 2017 or maybe 2018 but in that bull market we sort of fear and flash crashed almost zero on coinbase so if they are an Oracle you know its still a bit of an issue even though theyre really liquid yeah theres theres other worries there we might get into that another time but what you mentioned about finance chain as well when they first got it announced they were sort of the etherium competitor and I SEOs would be done on finance chain and and then that really died off and that Dex has almost got no traction I remember doing a tutorial on it and looking at the way thats structured it and they werent even asset so it was just like a centralized sort of backends and people think that theyre trading asset for asset whereas the theorems just really taken their market share and now theyve launched this new smart contract blockchain but I dont know the network effects I think its just just too strong how do they compete with that yeah I mean not to not to kind of trash any project in particular but I think anyone thats any project is trying to compete with the theorem at this stage is just yeah its an incredibly hard uphill battle even if youre financed and you have all this you know the this user base and this network effect as well it doesnt exactly translate over to a new protocol right and Im a big fan of a lot of the the protocols that are trying to do something different and not compete with if youre in like theyre launching their own chain but they are theyre trying to go after different kind of like markets or different use cases which arent probably arent gonna be as big as what a theorem is going after but you can still carve out your little niche and do something theres a project called helium its not available to us in Australia to buy these kind of like hot spots for it but its very popular because it allows people to become their own kind of like internet hotspot and mine this helium token with it and thats like a one single use case blockchain and its not something that thorium is gonna try and do anytime soon so those projects Im a big fan of but yeah anything trying to compete with the theorem is just its just reinforcing it theorems network effect because if that other chain fails to gain traction people are just like oh okay whatever Ill just go build on a theory Im nice its just you know its funny how that works yeah I mean I interviewed Icahn yesterday the day before and Im talking about this or the digital ID and certification and theyve got some businesses in Korea and whatever and thats sort of you know the target audience of real businesses and you build your way up from there but what were seeing with the theorem is that the network effects already started the show of big corporates being friendly to the public blockchain when a lot of that experimentation was with the private Forks and you know JP Morgan Im never gonna use this the other and all of a sudden got these people issuing bonds on the etherion public public chain so yeah thats great to see yeah yeah and I think on kind of network effects I think defy is the biggest use case of blockchains like fine in general um like were seeing a play out with with Bitcoin riot Bitcoin the story of value each Atal gold narrative it appeals to basically everyone its the total addressable market for finance is literally every single person on the planet right so you cant get much bigger than that yeah and when we talk about these derivatives at the moment and its just so interesting to me that we watch this play out the the physical gold market and the paper gold market is breaking and a project like deej X has just dissolved it down but I think thats one of the great use cases like making gold transparent rather than wondering if US has gold in Fort Knox or not theres another one of the worlds oldest bullion dealers announced theyre closing down today which doesnt even make sense like as a gold player thats in a gold bull market at the moment so there are the cases theres a great article Im not sure if it was by you know talking about how the theorem is gonna eat a lot of the traditional finances lunch and were already seeing that start to play out dy/dx that essentially decentralized derivatives platform futures swap to great projects and I know you want to talk about what theyre doing yeah I think it was Ryan Sean Adams that spoke about aetherium kind of eating Wall Streets lunch essentially and I think thats very true you just mentioned like dy/dx doing theyre theyre derivative products they releasing a BTC US DC perpetual contract market soon at I think it was like ten times leverage so thats basically going right up against bit mix and other centralized players to bring that to a theorem in a decentralized way future swap actually had like a really interesting launch a week ago they think they had like an alpha for three days and it was a twenty times leveraged exchange on aetherium I think they had over ten million dollars with the volume or something run through millions in liquidity and theyre like okay well we grew really fast really big this has been a really cool alpha forever after three days like were gonna shut it down and were gonna be back soon and it wasnt yeah they didnt shut down because they were it was a failure or anything they just took like this really great risk based approach where theyre like okay this is a lot of volume really quickly into contracts that are still in alpha lets make sure that we we pause here revisit later so yeah theres just going to be so more of this stuff were gonna like Ive always said were gonna rebuild the entire entire financial system on top of aetherium and literally everything that can be built will be built and well have new financial primitives well have new stuff like uni swap and and you know curved finance all these stuff like this this is not possible in a traditional finance system no matter what you try to do I dont understand thats probably what Im looking forward to most like with your technical knowledge and even bringing guests in as well and my sort of background understanding options and the financial markets like watching this come out play by play its just so exciting for me and everyone knows that bit max has all that trading volume at the moment but then the other day they had to shut down you know we can soon trade from our Hardware wallet its all going to be nice and secure you have to worry about exchanges or freezes or anything like that so sensible move to start off with that 10 and 20 times leverage for future swap as you say close it down have a look what how it all worked a question I did have about that obviously matching engines on these exchanges struggle at the best of times so with all these traders theyre not waiting for the etherion maintenance of process 15 transactions a second order but so how these platforms executing yeah so I think future swap was actually done all on chain I think yeah yeah because it because it was like a an alpha that I dont think they went with like any of the scaling technologies that are available today in terms of like scaling of like a an exchange in general the front-runner here seems to be loop ring a loop ring protocol they have their own roll-up based exchange right now thats live and you can go trade on there you basically get to trade I think like its its either hundreds of thousands of transactions a second inside these these roll-up constructions which is really really cool so theyre the leaders see I think theyre only one right now with a live product using this technology but I think future swap here because it was an alpha they just went they just put it out there to see what happened right there just like lets put it out there lets see if its actually popular people want this if so well you know pause then well come back later which turned out really great for them like thats thats pretty much the most successful launch of a DVI project in recent memory for me okay Im I have to reach out to them and get a bit more insight for that technology for when they do scale other thing I had in my notes here was Aztec ZK roll-ups weve plunk proofs so thats a bit of a mouthful but from what I read they can do 100 transactions per second private transactions as well and thats shipping to Manor soon yes so Aztec hes doing a lot of great work around this so people would have heard of ZK or zero knowledge proofs and and and as I said roll-ups and things like that thats very technical cryptography stuff like this is master class and cryptography basically arm I wont say that I understand how it works under the hood or anything but you know a lot of the smartest people I know are very excited about this tech and as you said this can do private transactions that can scale as well and you can actually do whats called things called recursive zero zero knowledge proof swear you can actually do zero knowledge proof inside of zero knowledge proof so that you can get even more scalability out of it which you know all the cryptographers that I follow theyre just getting really giddy about it so this this thing is definitely coming and is and is live in some capacity as Tech actually has their zero knowledge die which is basically a wrapper around die so thats live right now you can go check it out just google Aztec protocol itll come up with it but yes so and that can be applied to pretty much everything you know on aetherium and is going to be applied to everything on aetherium I just think itll take a bit more time because were not at that bottleneck yet were you know we saw the gas prices shoot up for a day or so on Black Thursday but they dont ever stay at 200 gray for example theyll range between 1 to 10 gray which is variable if we see consistent demand where the networks at 100% capacity or over 100% capacity then I think that were gonna see the protocols but ok we need to hurry up with our scaling initiatives and not just wait there are some protocols already taking you know the initiative and doing it now like synthetics has been doing some layer 2 stuff that theyve been kind of quiet about but theyre like you know leaking information about and as I said loop ring as well but you know the next few months couple of couple years I think were gonna see most of the other protocols get on board with this sorry get off me did ya synthetics interesting I didnt know that but it was gods unchained that I know very early on seem to have sold that issue and I was calling it their secret sauce because theyve been pretty tight-lipped about it do you know more about that but they seem to be doing a lot of transactions per second with people trading their cards yeah I think they found a way to efficiently activate the cards because when they sold the cards you needed to activate them to turn them into tradable tokens on aetherium and I remember reading that they found a way and I dont know if they were at least exactly what they did but they found a way to do this in a really really gas efficient way and you can see it on chain how they didnt spike the gas prices at all work took a few days and their way I would activate I think was millions of cards for their players yeah fantastic cool so sticking with this theme of eating Wall Streets lunch a couple more projects hedging and open so these are both using options for slightly different reasons headaches more just for the pure trading of options and opens more for hedging risk if my understanding is correct so any thoughts on those two projects yeah I mean I guess they could both be used for for hedging risk but Ill start with headache headaches a funny project because it launched and then a few days later there was a bug discovered in and so Ill go through briefly what that is so as you said the headaches an option was an options trading platform they launched and then what happened was they discovered a typo in their code that basically means theyre any funds that were in the contracts on this bet the specific options if when they expired those funds would actually just be frozen forever which you know it happened the the options expired and then I think was a $28,000 with it Ethan died and all that was frozen permanently the team is gonna cover cover that for the users that is affected that are affected by it which is really cool but yeah that projects offline at the moment because of that I think that theyre gonna fix their contracts and redeploy but yeah as you said open is another project thats doing options but theyre theyre trying to go after yeah the more ensure against like risk and kind of like and loss by using their options so like I guess its not a competitor to Nexus mutual like how the Nexus mutual does unchain insurance or or that I dont they like to call it insurance its more like just you know protecting yourself but yeah so I think theyre more complimentary there with with the options but most people Ive seen on Twitter talking about defy theyve really excited about these options platforms its just unfortunate that head jerk had to shut down so fast after they launched because they had a lot of fanfare like really quickly yeah thats I think thats what I was getting at with the Nexus mutual which weve covered a lot on the channel in terms of insurance for smart contracts the front end from what I saw with open wasnt really like this options trading platform what was more you know what what type of risk you want to head you what price and whatnot so sort of slightly different approach and in crypto we have huge tail risk which is kind of what options are all about and in traditional markets we saw people just forget about options cuz the market only ever went up so who would want to protect from downside and options got stupidly cheap and no one was even buying them and that was the extreme that marked the top of the market that we spoke about the time you might have heard us talk about the put to call ratio so all these things are gonna be awesome for the crypto world everyone from from miners aetherium stake is you want to hedge your risk if you want to lock up a lot of tokens you cant afford it for them to fall and you got to do all this from your hardware wallet nice and securely I cant wait to do tutorials and all this stuff once its fully fully yeah but do any final thoughts on those couple yeah I mean I think I think you explained it well options I think traditionally theyre very financing products that most people would not have heard of before like for me for example I come from a technical background Ive had to learn what options and puts and calls where over the last few weeks still not like totally you know get it or whatever it takes a while to to really understand it but once you do theyre very powerful instruments very you know theyre powerful instruments but you know with great power comes great responsibility and you know as youre saying that in theres different market conditions were holding you know a you know a certain option is gonna like be really bad for you or really good for you and you have to know how to kind of hedge that but yeah I think one thing I like on that know that Im really excited about its just more people gonna learn what these things are at the end were gonna have better you know more informed investors within the crypto space understand well if I give you a 1i one the easiest way that Ive found to explain it for people at home as well you dont want to get in the business of selling options and to youre an advanced writer that way you kind of become like a market maker and theres all sorts of risk when you start selling other things people when you dont really know what they are understand the risk but when youre buying options is that puts in the calls a call you can think of it as you want to call up the broker or your exchange in your imagination think of it this way call up and you want to be able to buy at that price so if you buy the etherium 200 call in you know for the end of the year if the theorem goes 4000 bucks you say great I get to call up and buy that for $200 good trade I put I think of it as put it into the market so you might buy the 200 etherion put fit into the year and pretty you want to protect yourself from downside so the theorem went down $100 you get to ring up or go to the exchange you get to put it into the mark and someone has to buy it off you for 200 so thats my 101 options explanation next up here reddit points now I know we had good old Donuts I had a heap of those and I loved in one day and theyre gone so I must have missed an upgrade or something there but now I read it themselves look what they want to go to some sort of crypto point system yeah I think so originally there was the donuts thing as you mentioned on Eve trade are the subreddit but I think what happened with that is theres a lot of drama that came out of that because people were someone created a breach where you could actually trade these doughnuts on you swap and they actually had like a pretty high market price at one point so people were like you know trying to do things spamming this operator trying to get more doughnuts and things like that and then we had the whole fallout between each trader and each finance where the moderators split off into into each finance and I think like each traders yeah theres never been the same sort of thing so its been a weird thing havent kept up too much with it I dont spend as much time on reddit as I used to but Ive read it is yeah definitely wanting to do more of these crypto points stuff I think we there was a I think its more of a League it wasnt an official announcement it was a it was a leak of like I cooked a point system that read it was experimenting with that was very similar to doughnuts where you could earn points for doing different things and you know maybe there could be used for for governance purposes or whatever I I mean its its funny because like weve seen this play out with steam as well the steam block train they had there drama where they forked off because of you know the Justin son buying its kind of attempted takeover but its really interesting to see more social media play with a point system Im not convinced that it its the you know it works just yet because Ive seen a lot of manipulation go on with BOTS spying and whales buying and selling votes and and BOTS just dominating these platforms people posting content just to get points right theyre not posting anything thats relevant theyre just like posting heat so they can get more points and sell it for real money or whatever but yeah I want to see more experiments play out and reddit doing it is just I kind of tick of approval which is really cool yeah I understand I saw the other day hive jump like a hundred percent and I was like what on earth is this and then I dont yeah put two and two together so good that the community have actually kept that platform decentralized out of Justins sons hands but even steaming as you say the whales got in early although the other platforms are post to now you put up a post and they be like all these BOTS commenting it so yeah youve got to maybe do some sort of ID system or make them generate unique if your address and keep a dollar in it of eath or something yeah get around the gaming of the system heath 2.0 test net so this is what everyones getting exciting about we had lots of people lots of addresses that have accumulated 32 III to go but we had a lot of people depositing and practicing on the tests no sooner talked us through all that yeah yes a big milestone in April actually two big milestones in April happen so prismatic labs are one of the lead if to client developing development teams launched their what they call their topaz test net which is the test net for two phase zero so you know this is basically I think the the second final test net the final one will be a multi-client test net but this one was launched it has the full main that configuration which means that this is whats going to main net when we launch if to know the actual thing later this year you know you can on the test that you can stake your 32 test 8th you can begin earning rewards that are Trude exactly how theyll be on main there youll youre in your validator client and youre the beacon know that you run on your PC you can see you know how they interact how they work and everything exactly as it will be on main net so that was a huge huge thing that happened and then a few days ago there was a tweet that 12 the clients Sigma Prime slide house and prismatic lapses prism client are talking to each other not as part of a long-lived multi-client test in there but as part of a just getting them to talk to each other because before we can launch main net we need these different clients to be able to talk to each other and run without a hitch then we can turn over to main net so its pretty much yeah its really close but I know theres a lot of words and there lot of technical stuff in there people who dont know it Ill let you explain it a bit as well if you wanted to yeah well again even for my knowledge I was gonna say is the best way for people home to think of this when you say multi-client test now its almost like we want apples and Samsungs to be able to sort of talk to each other and communicate and sync up and other different clients have slightly different use cases or why are there different clients yes so eath one Ill go back to how each one works today it has different client Saunders well it like if we even go back to SAP Bitcoin Bitcoin has one main client the Bitcoin core client but theoretically anyone can build a client as long as they fit as long as they build it to the spec of Bitcoin so as long as it still has the parameters like you know that can only be 21 million Bitcoin it has the same mining algorithm as long as its Bitcoin the Bitcoin spec it can talk to the other clients and the same with Furio the eighth one clients there I mean the the the code that they have can be optimized for different things so there was like the parity and get clients on earth one parody is now open aetherium actually it was it was forked off but parody used to be bad I think for miners and then get used to be better for people just running nodes at home and theres different optimizations these clients can do they can optimize to be easier to run on peoples hardware you know they can you take up less storage on peoples hardware things like that and thats why we want multi clients thats one of the reasons why another reason is that we get rid of the risk of having only one client for people who saw recently the reason why parody client is now called open aetherium is because parody basically are building polka-dot a competitor network to aetherium right and theyre basically they basically said were not going to be supporting the parody aetherium client anymore so if anyone wants to they have to you know fork it off and support it that way so that would be a really shitty situation if they were the only client right but because we have multiple clients it means that that parody wasnt a hundred percent of the network they were like forty percent of the network and then people were able to go to the guest client without having to rely on this single point of failure so thats the other logic behind it and thats what we want thats why theorem has a culture of multi client kind of um mode multi-client culture whereas bitcoin is like a single client lets make the Bitcoin core client the best that can be Delta like the the smallest code efficiencies that we can get out of it and just trust that you know the pecan core client doesnt get corrupted or something okay so yeah its basically saying well anyone can build and create software to execute programs on the theorem and youve just got to stick to these set of rules the specs or the specifications and then you just got to make sure they also communicate properly and whatnot and we get to those final stages on the etherium 2.0 test nets and I think final thing I want to add was weve seen really really good performance from the tokens that are yielding and staking everyones you know baking these tezos and cardanos to you know to maintenance finally here and whatnot so I just think its going to be another huge driver weve got D fire behind the theorem once people can get out there 32 II thought if youve got less than that Ill do videos on the pools and whatnot once you can get that yield there was an eighth calculator came out the other day I think people are going to be really attracted to that again negative interest rate environments just another reason so the stars are aligning yeah yeah for sure and I actually just thought of another analogy to use for like what to explain what multi-client kind of testing itself how they work is people you know use torrents right at the end the day you use different torrenting applications like BitTorrent or uterine they all confirm fur like conform to the same BitTorrent specs so theyre different clients but they do the same thing thats like I think a really good way of explaining exactly you know what a multi-client testing that would look like okay yeah yeah cool um next up unless you had anything else I think what have I got on my list here the sets performance so in terms of performance the markets kind of been just compressing its volatility I think theres a big move coming but it was a good study out about whats been performing best and sets that you actually do some work where theyve been performing really well yes so a zero on put out a basically a blog post saying comparing different defy protocols for how much money you could have made on each of them for that I think the first three months of 2020 and set came out on top they only did two of the the sets I think it was the eighth 20 day moving average in the 50-day moving average they didnt do the other ones that had only been that hadnt been out for the full three months of this year but they came out way ahead of all the other protocols simply because I think well I mean sets are inherently going to make you more money or lose you more money right because there there are a lot riskier than just putting money into a lending protocol you might earn like three or four percent on your USD C but with a set if it makes a good trade you might make 20% in that trade or something like that so thats why I think weve seen you know that our performance happened but I think in general people do need to take into account like risk adjusted returns I dont think many people in D if I think about risk at all you know its very risky to be in a safe compared to a lending protocol because of the fact that you can lose money its not guaranteed to make you money its like any trade it could make a bad trade and then you could lose 20% of your money over a few days or something right a lending protocol the the worst that can happen is I mean it gets hacked of course it is a risk but thats also a risk for set but and also if the race just drop and you know youre not youre not gonna lose money but you just gonna make less than than what you put in so I think you know this was report was good but I do want people to think more about risk and where theyre allocating their funds and how much wish they want to take on yeah and its gonna be interesting over time to see how that data stacks up whether or not it actually does become a bit of a zero-sum game or whether or not in a trending market they perform really well volatile and whatnot so yeah thats what Im excited to see with those set tokens we can deploy strategies to outperform the market hopefully get coin we we got that grants up and just in time we got a few hundred died which is about 500 Aussie dollars so thanks to everyone there that means that we can put some more time and I can get one of my guys to do even more Theorem research and the list keeps growing longer here and you know everything that weve got to go over so I mean just quickly weve got Kaibas going really well theyve got that big catalyst upgrade 0ex has been going well theyve got what was the name of the match are bringing together all that liquidity compounds got their governance token out so yeah defy and all these sort of trading Dexs Ive just really taken off lately yeah its its exploded it really has I I think the reason why most people are bullish about defy is the potential for growth here right if you think about it you mentioned it earlier were still so small so so small like there is this I mean wed like to think that were bigger than what we are but were really not and and thats a positive thing to me because we have so much potential for growth here and all these new products coming online and getting all this volume running through them just shows that theres appetite for it you know and were getting better at valuing these things if we talk about like the tokens that have been going up were like okay and Cs been going up lately because they readjusted their their token economics and theres actually ways the value at now 0x the same thing theres a few other protocols like are there with lend as well as been has been on a tear lately you know and I think that actually came out of synthetics is modeled - people are like are synthetics you know cracked it they cracked the code this is what we spoke this is what we should do and then all these other protocols are following which just even is even better because you get an army of people who hold your token who have upside in using your product and upside in holding a token for using your product and for other people using it so its just this perfect storm coming together lately of um of defy its just its pretty awesome to see yeah I know we had a lot of very happy members because we have been doing a lot of the research reports on the D 5 projects in khyber was one that we covered in a lot of detail when it was like 10 or 15 cents and its just been an absolute tear there as well just quickly a bit of a laugh we had Tron come out with a platform that was an absolute like ripoff copy-paste the front end and the back end of synthetics so Im not sure if theyre going to call that in tronics no shame there some people saying well you know its open source you can do whatever you want did you say that yeah yeah I saw that so they copied make as well and I I find it funny when people say its open source its like yeah okay its open source but open source doesnt mean you can just copy the code this actually happened with d-force as well like theyre lending protocol they copied compounds code and compounds codes actually copyrighted just because its open source doesnt mean its free to use so theres different open source licenses right I wont go into like detail about every license but theres licenses that say okay you can use this and you know and sell it for your own benefit or you can use this but only for free you cant make money off it or you cant use this even though you can see the code so theres different licenses that come into it and you know even if the license says you can use this code its free to use and Tron was the copier theyre not theyre not only copying the back-end code theyre just ripping off the entire interface like thats thats not open-source culture at all thats like just copying someone elses work which you know maybe I guess in China they have that culture like not to generalize here but they are known for copying right for copying a lot of things ripping off like not even just crypto and everything and you know Justin son doing it is no surprise hes done it with Tron trans was a fork of aetherium right if youre MJ the client for a theorem and you know hes done it with like other projects and stuff like no big parents that like just its he bought in and then its just all this this massive stuff that happens so I thought it was funny I didnt expect anything more from Yvette yeah I dont think its gonna get a lot of traction a couple other really cool little projects pull together that weve covered the no loss lottery of now got pods so you can Kalia syndicate like you join your Tesla syndicate at work I thought that was pretty cool yeah yeah bringing syndicates - you know theres no lost lottery concept is definitely very powerful because syndicates are extremely popular you know in the traditional world so yeah I thought that was really cool to see I put on Twitter the other day someone said US has a gambling problem and I put up the Australian stats and its like 50% of some demographics in Australia buy a lot of ticket every week like the numbers are insane in Australia I dont think Ive heard of pull together yet yeah dharma their social pay up so a theorem named service is cool because we can pay each others names that we buy readable names rather than those long addresses but now weve got dharma where you can pay people is like twitter handles and stuff as well yeah yeah so dharma is i think becoming the the regular kind of like regular people kind of like layoffs or defy where theyre just like no this is gonna look like a venmo or something or another another app that you would use but its going to be built on a theorem and defy so their social payments app lets you basically send USD and in stable coins to people you know on twitter using their twitter name which is you know weve seen all these tipping BOTS in the past I think its Bitcoin tipping bots that have been out for ages like the dogecoin one from back in the day as well but dom is trying to go one step further and make it a noncustodial thing where they dont actually hold any funds for the users the users can just do it on their own from from the app which is really cool yeah even even with that its still very hard to like keep people and if you didnt know what was going on then youve got to sign up and whatnot so hopefully this is a lot more user friendly open sea we mentioned before I did think I read that I had a big upgrade but if you havent checked out open sea its like a decentralized gum tree or a nifty style platform really yeah yes open sea is like a platform to buy and sell these NFT like collectibles for games like as we spoke before like gods Unchained cards are on there any of the other crypto games and stuff like that so even some like art like digital art and things like that so yeah yeah yes like super rares and things and you know were actually seeing more of these stuff come online I dont know if you have it in your notes there but we have like different new limited edition collectibles like digital collectibles coming out that actually represent physical goods like uni socks that came out like a few months ago where you could trade these socks has tokens but theyre actually physical socks and then we had Saint Fame which is like a dhow which is producing like hype street wear sort of thing you can think of like a Kanyes you know style street wear and theyre theyre tradable on a theorem as a token but theres still a physical good attached to that so were seeing a lot of these kind of like collect the bull stuff like really take off lately yeah and weve been talking about the need to increase the market cap to increase what defy can do basically because youre limited to how big whatevers backing it is and this is where it gets really interesting when we talk about things like Realty so tokenizing property properties the biggest asset class on the planet its actually bigger than the bond market so if we can tokenize property and I can sit here and say well you know I want to do some landing but Ill put my my house to back it because I know my house even in a the worst case scenario my propertys not gonna fall ninety percent like a theorem or something instead of sitting behind it so all of a sudden once we can tokenize real-world assets Defy gets very interesting very quickly yeah yeah realty I love that project I really do you know a big fan of David Hoffman and hes working etherium for those who know him he works at Realty like Im a driver of them there but I Im fully with you even though like when you tokenize a real-world asset like like a realist like real estate or something its not like the token entitles you to basically you know the ownership and everything there is paperwork in the background and stuff but what the token does is it allows you to invest in markets that you wouldnt normally be able to invest in i I am able to hold like Ive got some Realty tokens Im able to hold these tokens that represent a claim on some US property and the tax revenue from that price are that the the rent from that property so Im earning rent from a u.s. you know property in the US and its funny because US properties that the first bit of property that Ive actually even owned like I dont even own property in Australia so its just it opens up the real estate market to the entire world but no matter where you are you can buy a piece of real estate in a different country without going through all the red tape you just buy the token on the Realty website yes theres kyc but thats all you do you kyc then they handle it all for you in the background all the paperwork and stuff like that which is really cool so I mean even just theyre like you and I have sort of highlighted two very different reasons while were excited about this stuff and thats going down the security token path where youve got a register and whatnot but this is what the big hope was two years ago that security tokens would take off and you log into this interface and you want to buy a bit of property like Anthony said and get some stream from some rents and just getting access to companies and businesses and ideas that normally would be just a nightmare if not impossible for the average retail investor thats in a different country theyre not accredited the paperworks too hard yeah its hopefully its going to become really frictionless yeah exactly theyre still gonna be restrictions I think depending on where you live like if youre in a sanctioned country youre not gonna be able to buy US property right so there are gonna be restrictions but it still opens it up and grows the pie more than what weve seen in the past yeah I think were done the last couple of things that I want to cover maker getting sued this sort of gets back to what were talking about before about well whats decentralized whats not what are your thoughts on that yes I think like for those who probably think how can it like make it get sued right its like a protocol its good to say that the good to make the difference here that its the maker foundation thats that was getting sued so they make a foundation I like the stewards of the protocol they created the protocol but theyre trying to decentralize it its like the etherium foundation they exist at the fund development but they dont control the FIRREA so its the same with makeup but yeah people are kind of suing them for losses incurred in Black Thursday that we spoke about last time how some vaults basically had no collateral left and were left with nothing because the bids came in at0 died for their collateral Im not sure you know where these lawsuits gonna go I think theyre there theyre suing for 28 million dollars worth of damages you know and then after you know this came out the maker holders were gonna vote on if they would print some more MKR tokens to make up some of the losses incurred by the vault holders but yeah I mean it does it does speak to like you know if youre suing this foundation does that put pressure on them to do this decentralized vote right on on maker to print more tokens to cover up the losses and it gets very messy I dont know I dont really know if its gonna go anywhere to be honest because they theyre theyre claiming that that make a representative risks but if you read the fine print it does say that youre not guaranteed to get back anything right if youre liquidated because thats just how the system works but they but you know to be fair they didnt make that obvious it wasnt any big red text on their site saying you could lose everything it was basically saying okay well normally you would only lose 13 percent in a penalty and you get you know everything that you didnt have to sell to pay down your debt so yeah mmm that is a complicated one and you dont want it setting a precedent for other things well I would assume that a lot of the making guys could probably cover that amount of money if they really wanted to but well see what happens there I think thats everything I had on my list theres a lot going on Im sure well have actually one thing I want to mention just quickly was the gnosis so another prediction market they go out there Dex but they also launched some coronavirus prediction markets yeah yeah so I dont think theyve actually launched them themselves and theyre funding them so they put like seed capital into these coronavirus prediction markets I want to see if the crowd can actually predict what you know case numbers will be next month or what the you know the death rates will be next month which i think is i mean cool is probably the wrong word to use because obviously i dont want you know obviously its like a really crappy situation but its an innovative way i think of trying to gauge more information about these things and maybe sometime in the future maybe like way into the future scientists can use this wisdom of the crowds eventually to inform their decisions about future you know pandemics and things like that so yeah it was really cool to see so those go live and you know actually have skin in the game too with real money yeah I know or go the other prediction market has another upgrade coming out soon so the concept of wisdom of the crowd for Algren osis is very cool but I just think its a its a horrible example to use because its to the point now in most countries where theyre not even too worried about testing those no its out there so one day they might decide to conduct a million more tests than the previous day so peaking the case numbers and testing positives doesnt really mean much but anyway yeah yeah its its its interesting like I I kind of said the same thing like Eric my co-founder of a table works at gnosis as a product manager there and I said to him Im like it depends on a few different factors and hes like yeah but he thinks that people will take those factors into account when placing their bets and then that will actually you know make it more accurate Im like I can say that well have to say a play out for sure yeah sorry Eric wasnt trash-talking okay cool well guys thats thats probably in an hour theyre fantastic I did want to make these a bit longer I think thats the feedback weve got because theres so much to cover so any final thoughts Anthony or chat again next month yeah I think we covered most of the big stuff that happened over the past few weeks and yeah its great to see the comments on on the video from last month the people were saying they wanted us to do more of this because yeah Im always down to talk more ethereal and especially to people who dont normally you know follow aetherium to get them involved so yeah definitely excited for for next months to see what whats coming awesome well thanks guys hope youve enjoyed that so Ill put the links to Finance me down below and well catch you next month Cheers awesome thanks guys This Months Top Ethereum News, Innovation & Development – April 2020In this new regular series Anthony Sassano & I will be going over all the latest innovation, developments, news & exciting projects from the entire Ethereum ecosystem. We will be covering both technical & fundamental aspects as Ethereum, ETH 2.0, decentralised finance DeFi, staking, research & adoption of this exciting technology as it begins gaining traction in the real world. With so much innovation in the blockchain & cryptocurrency industry happening on Ethereum this monthly episode will help you stay informed. Ethereum DeFi ETHTIMESTAMPS: 0:25 Recap of the latest from Ethereum and DeFi 2:30 dForce hack 6:00 The need for Curve, Shell, and mStable 8:40 DeFi a misnomer 11:15 Exchanges & DeFi 16:30 dYdX & Futureswap 19:10 Loopring & AZTEC’s approach to scalability 22:50 Managing risk with Hegic & Opyn 26:20 Options 101 27:20 Reddit’s Ethereum-based rewards experiment 30:00 Ethereum 2.0 latest 35:45 Performance of TokenSets on Set protocol 36:35 Understanding risk-adjusted returns 38:00 Kyber’s Katalyst upgrade; Matcha on 0x, Compound & $COMP token 39:45 Open-source licenses 41:30 PoolTogether Pods 42:05 Dharma social pay 44:05 NFTs for physical goods 45:00 RealT progress 47:10 Maker Foundation lawsuit 49:25 Gnosis sponsoring Corona Information Markets ETH 2.0 Explained: ETH Staking Explained: How To Be Your Own Bank: Pool Together Tutorial: dYdX Tutorial: Maker CPD Tutorial: Thanks to everyone who has donated to our Gitcoin grant! Did you enjoy this video? 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Obtain independent legal, financial, taxation and/or other professional advice in respect of any decision made in connection with this video. Ethereum,ETH,DeFi,