Hey yo, what is going on with your new Week,
the Chico army but if you're a newbie, no
stripes, you're just a viewer of the tube...my
name is Tyler, the host of the crypto channel,
that is proud to be from this Area
of California….shoot, fire trucks blue and
red, filled with bud and bud light, logos
of each on the trucks...now that is marketing
and it could save our public service fire
departments across the country.
A win win, kind of like this episode...It’s
time for Chico Crypto!
You know what else is a win-win?
Scaling ethereum right now….I ended last
week’s videos, talking about it, and I gotta
keep talking about it, because it’s single
handedly the biggest issue facing the space
right now!
Daily transactions on Ethereum are reaching
the 2017-early 2018 mania, and Fee’s have
already exceeded what was hit back then in
USD terms.
Fee’s just keep going higher and higher...with
the average fee topping over 6.40 cents over
the weekend.
To complete a Uniswap transaction, it costs
people too much money unless they are making
trades in the thousands upon thousands of
dollars.
The retail trader, who wants to swap a couple
of bucks...not worth it….
So who is going to fix this?
Are we just going to wait for Ethereum 2.0?
Are we going to wait for rollup technology
to break through?
Well I’m sure you have seen the surge of
OMG, it seemed like it wouldn’t stop….it
hit 9 bucks for a bit of time over the weekend….pushing
it up into the top 30 coins, with a market
cap of 1 billion dollars.
Now when the public mainnet of OMG launched
in early June, Vitalik himself dropped a tweet
to congratulate them...that was early June...why
then this Month when someone asked if he was
to build on a different chain for scaling,
Vitalik replied “Ropsten, Goerli..two etherum
testnets and Xdai..with a published intent
to migrate onto eth2 or optimistic rollup
when those are ready?
He didn’t mention OMG, he didn’t mention
Plasma, which is OMG’s second layer scaling
solution.
He mentioned ETH2, which will have sharding
& optimistic rollups.
And here is the other interesting thing.
There was a research group called Plasma Group,
who has been working on the Plasma solution
for some time….they put out a blog post
titled, onto new beginnings in January of
this year?
Before we get into the new beginnings, we
can see their relation to OMG..they list their
donors and they said this “ Audits on the
first version of the OMG Plasma Framework,
which took inspiration from Plasma Group’s
[work on predicates], are nearly finished.
It’s exciting to see our work being used
in the wild, and it’s also a testament to
OmiseGO’s commitment to the kind of cross-pollination
that makes this space so special.”
So what is their new beginning?
Well Coindesk dropped the article in February
of this Year...Plasma became Optimism, and
it just might save Ethereum.
Yes they are creating the OVM, optimistic
virtual machine, and the article states “We
designed the OVM to be used as drop-in replacement
for the EVM inside of Optimistic Rollup.”
Yes going back to Vitalik’s tweet, the optimistic
rollup Vitalik was talking about?
So again why no mention of OMG for the scaling
portion?
Well the thing here is OMG, and it's a Plasma
solution, it can scale Ethereum right now
in a basic form, aka the movement of value
and tokens.
But it cannot scale smart contracts which
dapp developers are relying on.
Scaling smart contracts with Plasma is still
in the r&D phase, which a major research group
of theirs has dropped for OVM.
So could we see a protocol like Uniswap using
Plasma and OMG?
Well before it was announced Plasma Group
was switching to Optimism, they released a
scaling solution in collaboration with Uniswap,
Decrypto covered it... what was it?
The article states “Hayden Adams, CEO of
Uniswap, told Decrypt that the achievement
here is that Optimistic Rollup manages to
accomplish all of this without using sidechains,
which are more centralized, and without sacrificing
the ability to create complex applications.
That’s important for Adams’ Uniswap, which
requires a lot of different parties to interact
with each other.
Make no mistake—Optimistic Rollup is not
Plasma.
So right now, something like Uniswap with
the UI, backend, and smart contracts...cannot
be built on OMG..but the centralized exchanges
can use it to transfer value, two parties
can... that is possible & as we know some
are doing it.
But unknown parties, swapping value through
liquidity pools not possible.
So is OVM possible right now?
Well according to their roadmap, we are coming
up on just the testnet stage...with a single
sequencer mainnet, not scheduled for this
year obviously, they have an X in it’s place.
So, if you wanted to build a scalable uniswap...where
would you build it?
Like vitalik mentioned, the two testnets,
wait for ETH2 and optimistic rollups...or
the xDAI….mainnet & If you watched my video
Friday, I showed it is on the mainet, and
there is a Uniswap Beta already built.
Which is fast, and gas fees are negligible??
Now remember how I have always said to follow
the developers?
What are they doing?
Well I’m sure you know of the project Aragon,
the decentralized autonomous organization,
DAO protocol, which is no joke within the
ethereum community, they have a widespread
net of Ethereum developers, building on the
protocol with multiple teams listed, but let’s
scroll back up to the #1 team...it’s called
1HIVE
Now the DAO developer community of 1hive have
their own community currency, called HONEY...and
they put out a blog post in July of this year,
explaining they were migrating it to the xdai
chain.
Where did they leave from?
Ethereum...and why?
Well they explain in the post “We want to
do that as quickly and with as little friction
as possible, so we have decided to launch
Honey on xDAI where there is very little network
congestion and transaction fees are not a
significant concern.
This will allow us to focus on what matters
most—building and circulating value within
the Honey economy, while at the same time
avoiding the friction caused by a wildly volatile
transaction fee market and uncertain timeline
for practical scalability on Ethereum today”
And if you guys didn’t know 1hive, are the
ones who created the Uniswap fork on xdai,
as we can see there is their Honey currency
right there.
So where are we at with a scalable protocol
that can host all the benefits of Ethereum
smart contracts?
The most robust one, is xdai stake….
But the liquidity issue is a big problem...it
twas hard enough to get Uniswap to where it
is today, how will xdai get liquidity on it’s
chain?
The developers my friends, By bridges, and
being a fully compatible sister chain…
Well Aragon has another subsection of their
project, called Aragon Experts, and there's
a certain dev group we need to focus on.
Raid Guild….guess what they are building
on xdai?
Well xdai tweeted about it, Checkout the @RaidGuild
WrapEth DApp now available for xDai.
It's simple to wrap & unwrap $xDai  $wxDai,
just connect to the xDai chain.Why wxDai?
Wrapped native tokens are useful forDEXs,
Swaps and DAOs....oh my!
So I’m sure I confused some of you why this
is important, xdai, wrappedxdai?
So xdai, is the stablecoin, which lives on
the xdai chain...it’s not directly compatible
with ethereum, and uniswap...this wrapper,
takes it from the xdai chain through a bridge,
and converts it to a compatible token for
Uniswap on Ethereum’s mainnet.
Now some may think this is complicated, but
if you didn’t know Ethereum needs wrapped
for every Uniswap transaction, as wrapped
ETH is the largest pool on Uniswap, and as
we can see wETH, is the erc20 tradable version
of Ethereum.
So, complicated no, as it’s a common occurrence
happening with Ethereum and every uniswap,
…..swap...every single one.
So 2 major teams within Aragon and thus the
Ethereum dev community, have gone the way
of xdai, building the infrastructure & tools
to push forward the xdai chain…
I wonder why?
Well let me try and explain my theory...now
if you did not know...Aragon is building their
own Aragon Chain, which is a proof of stake,
EVM compatible blockchain, to host their DAOs
& as we can see, it’s being built on the
cosmos SDK and ethermint.
Now, Aragon has contracted out Chainsafe to
build this for them, here is the medium post
about it, posted in November of 2019.
They say that yes, Aragon and them are working
together to build Aragon Chain, on Ethermint,
but it says, Ethermint is also being fully
developed by Chainsafe...
Now, the last update regarding Aragon Chain,
and thus Ethermint, was 3 months ago, when
a private test environment was announced June
1st...then they said a public testnet was
coming soon, which will consist of 2 parts,
2 separate testnets...but below they said,
within a few weeks, they would be able to
complete the remaining tasks in a few weeks,
for the 1st testnet, and it would be live
soon.
Well 3 months later, and there is no first
public testnet yet...and I don’t think there
is one coming soon, as if you go to the chainsafe
ethermint github & go to issues, there are
over 40 open, with many of them on ICE.
So that Chain is going to have to wait, I
see it & i think the Aragon team does too?
So in October of 2019, there was a forum discussion
going on about Aragon Chain, and a greg the
greek is leading the discussion...Greg the
Greek, the is Gregory Markou, CTO of chainsafe.
& in it he replies to a comment about using
xdai…he says...”Does this mean we can’t
use POA at all?
Absolutely not, blockscout is EVM compatible,
and does the job (we interface with it for
our work on Ethereum Classic).
We haven’t written a full specification
for the Aragon Chain yet, ultimately we didn’t
find out the decision to go with Ethermint
until well after we handed off the report.
The beautiful part of all this, is that we
have a large design space to work with, and
a lot of things have yet to be finalized”
So there is discussion of xdai….now here
is what’s interesting to me, at the end
of June, when the public testnet of etheremint
was supposed to ship, Aragon announced a hackathon,
called the Hack for Freedom event…
It was a big event, with big judges, including
Jesse Pollack from Coinbase….Now guess who
won the hackathon?
First prize...Aragon China...which is a sleek
and simple Aragon client for the chinese market...we
can dive into the docs about it, and this
is what is said “Recognising that Ethereum
gas fees are increasingly prohibitive to DAO
adoption, we have created the DAO builder
in such a way that builders can choose to
deploy their DAO on Ethereum or the xDAI blockchain,
which if you go the website to build a DAO,
it sets itself to xdai by default.
Now, guess who won second place at the hackathon?
Well going back to the tweet announcement
1Hive’s Bright ID Faucet, yes the 1hive
we have talked about who is building fully
on xdai….now who won best user experience?
Aragon China….and below that the runner
up was facebook FLY, FBfly...what is this?
Well it’s a way of bringing DAOs to facebook
groups, aka financial systems, voting and
money to groups & the UI and setup, is super
simple...well going to their about...why do
they have an about xdai right there?
Oh because FBfly DAOs are built on the xdai
chain….
So I’m not saying necessarily, we will see
Aragon chain be dropped for xdai, but it’s
not ready, Ethermint, and it won’t be on
the mainnet for a good while...so in the meantime,
it’s xdai, and the ecosystem, may just force
them to take another look.
Cheer’s viewers I’ll see you next time!
Uniswap is one thing, but what about the next
generation of layer 2 dapps, which cater to
the buzzwords of this bull run like DeFi,
Farming and governance tokens?
Well that is PowerPool, which is a coming
protocol and dapp to accumulate governance
power in Ethereum protocols, and caters to
both, large holders of tokens, and minority
holders, with smaller shares.
It’s a lending, borrowing and pooling protocol
for governance tokens, get returns for that
and keep compounding that to of course increase
your monetary stack, but accumulate governance
power in this blossoming sector of crypto
tokens.
Now just last week, the first alpha of the
protocol launched….
And guess what chains they are testing it
on?
Well as we can see xdai and another 2nd layer
scaling solution Matic….now they did choose
Matic because, they did receive a grant from
them.
Accordion to their partnership announcement
“PowerPool is excited to announce an ongoing
collaboration with Matic Network and proud
to receive development grant of $10,000 in
Matic tokens.
This integration will support creation of
the first Second Layer DeFi lending protocol
on a Layer2 blockchain like Matic”
Now, why are they testing with xdai too if
they are planning to jump on matic...doesn’t
make too much sense to me?
Well they explained, in an AMA...why not choose
xdai or any other network?
They respond “That’s a good question.
Matic is the perfect network for the start:
very similar to Ethereum, its capitalization
is 5–7 times bigger than xDai, good amount
of support from their side.
PowerPool is a community-driven project, if
our community votes to migrate to any other
sidechain in future, it wouldn’t be a problem...so
a nice way of saying...money has to do with
it, but they are using xdai, just in case...it’s
not feasible.
Why wouldn’t it be feasible?
Well xdai has compared their protocol with
Matic, and this is what they say ‘Both chains
are efficient when transferring assets from
the Ethereum Mainnet, it takes a short amount
of time to move ERC20 or ERC721 tokens from
Ethereum to Matic or xDai.
However, moving assets back to the Ethereum
Mainnet is a different story.
On the xDai chain, assets can be moved in
minutes to achieve very quick liquidity.
With Matic, transactions must undergo a 7
day waiting period (due to fraud checks) before
they are available on Ethereum.
7 days to wait, if you want to go back to
the Ethereum mainnet...hmmm, for a bridge
to be a good bridge, it needs to be open,
and ready both ways.
That is why xdai, Stake, is my favorite layer
2 solution out right now.
Cheers viewers I’ll see you next time!
