Thread by @0xmisaka

2 of the most used blockchains Solana and Ethereum became *unusable* for a while yesterday.

Both actually share 2 sides of the same problem:

The Race for BlockSpace 🧵👇

2) For Context:
🦧ETH became *unusable* because it costs too much gas (1.5 ETH) to do anything as APEs bid for high gas to mint Otherdeed land

◎ Solana on the other hand got spam >100Gbps so bad by NFT bots for block space that the network had to shut down and restart

3) BlockSpace is a commodity 🫧

- Blockspace has different values depending on chains ⛓️ you are in ( i.e. more valuable on ETH and less on Fantom, etc)

- Blockspace is valued differently based on Time ⏲️ (more valuable during NFT mint, congestion, etc)

https://twitter.com/mizbani_/status/1508622843071795202?s=20&t=UfpcAJvMWWMKtJrtOw2xVw

4) ETH and SOL have 2 very distinct BlockSpace types to solve the BlockSpace race.

🦧ETH: BlockSpace- type L, limited supply, price(gas fees) scale according to demand

◎ SOL: BlockSpace- type U, unlimited supply, more demand increases BlockSpace supply instead of price

5) Advantages of Limited BlockSpace (Type L) 📦:
- Bots 🤖 are penalized (limit spam)
- Anyone can send transactions through albeit paying the market price for Blockspace

Disadvantage:
- Surge pricing during congestion ⛔️
- scalability (can be solved with Rollup)

6) Advantages of Unlimited BlockSpace (Type U) 🧱:
- more scalability ⚖️
- flat fees

Disadvantage:
- bots will literally take down the network to mint JPEG 🎨.

7) Why can't you have both cheaper fees and more block space?
A lot of these have to do with making tradeoffs in the Transaction Quality Dilemma, outlined here

https://twitter.com/0xmisaka/status/1511370037306834954?s=20&t=UfpcAJvMWWMKtJrtOw2xVw

8) Would a new L1 solve gas wars? Unlikely

This is a problem of paying a higher ⚡️fee so your transaction gets prioritized and not a problem of sending any transaction through

As long as the cost of mint fits the budget, people will still pay higher gas

https://twitter.com/0xngmi/status/1520612765626368000?s=20&t=UfpcAJvMWWMKtJrtOw2xVw

9) Could Otherdeed design a better mint mechanic⚙️? short answer yes

- Dutch Auction and Long sale duration are designed to prevent gas wars ⛽️

long answer why?
what better narrative than *ETH can't support our Blockspace demand, we need new L1*

https://twitter.com/iamDCinvestor/status/1520618315043028992?s=20&t=UfpcAJvMWWMKtJrtOw2xVw

10)
Broke: Use Dutch Auction

Woke: Caused Gas Wars to promote new L1

*Your users can't afford to burn money, mine can.*

We are not the same

* this is a joke btw, don't take it too seriously

11) Back to SOL◎
Solana is having this problem because there are no effective fees market.
bots are literally spamming with no penalty ⛔️

On Eth, you at least still pay high gas for failed transactions.

12) How does Solana plan to solve this problem? 🏗️

solution:
- limit spam: QUIC -> TLDR; Rate Limit Spam 🦔
- introducing per account fee market: NFT mint will only cause surge pricing for NFT mint and not for other users

End)
BlockSpace as a commodity is a new thesis currently in development 🖥️.
It will likely play a significant role in the near future but may be too early for now.

There are other factors that play a role 👑 here as well MEV, Rollup, Gaming, etc.

*Further Clarification:
To prioritize Txs so you can mint NFT first, you can do 2 things:
- ETH (Limited Blockspace): pay higher gas
- SOL (Unlimited Blockspace/ Flat fees): spam to make sure your Txs are in front.

*on ApeChain new L1:
new L1 with more backspace doesn't necessarily fix this (more blockspace -> more spam) unless you have spam detection (QUIC, etc).

ImmutableX L2 on StarkEx was able to achieve this although this introduces a bit of centralization

https://twitter.com/0xmisaka/status/1511370040842543111?s=20&t=EocDpsHSWVN9iyHrkHNEzw