10x this 👇 Even though I am happy with ETH2 slowly coming to life, I don't see how ETH2 could not be a fork of ETH1. Trying to make ETH2 a continuity of ETH1 is not only dillusional but it is also not a good idea. Here's why:
Making ETH2 a continuity of ETH1 is dillusional because it can't possibly happen. And the reason is not because ETH2 will not work, but rather because ETH1 works and already has product/market fit with #DeFi
Product/market fit. ETH1 is perfect for DeFi because DeFi needs strong security and does not care much about transaction speeds. Make a trade order on Fidelity at 8pm, it gets filled the next morning. Ask your bank for a loan, wait days for money to arrive!
10x better. Despite its relative low throughput and long transaction times, ETH1 today vastly outperforms the legacy centralized financial stack in both transaction times and fees. If you believe in peter Thiel 10x technology rule, ETH1 is a good example amazon.com/Zero-One-Notes…
DeFi Composability. The fact that DeFi projects (@MakerDAO, @compoundfinance, @UniswapExchange, @KyberNetwork, @0xProject, @InstaDApp, @zerion_io etc...) can leverage each other not only makes innovation much easier and cheaper, it - above all - creates a strong network effect
@MakerDAO @compoundfinance @UniswapExchange @KyberNetwork @0xProject @InstaDApp @zerion_io Power law. The composability of DeFi also means that innovation on DeFi will likely follow a power law and 2020 as @jinglanW recently stated: "2020 will likely be the "year of dope shit shipping"
@MakerDAO @compoundfinance @UniswapExchange @KyberNetwork @0xProject @InstaDApp @zerion_io @jinglanW Stablecoins. Stablecoins play a central role in DeFi. $DAI, $USDC, $USDT all exist and are gaining worldwide momentum on ETH1 today and, as @hosseeb and @lsquaredleland explained, they make ETH1 basically unforkable: medium.com/dragonfly-rese…
@MakerDAO @compoundfinance @UniswapExchange @KyberNetwork @0xProject @InstaDApp @zerion_io @jinglanW @hosseeb @Lsquaredleland Developers. Add to that that ETH1 already is by far the blockchain with the largest developer community, the most advanced developers tools and documentation. That also compounds and reinforces inertia. That's why @ethereumJoseph is setting #OneMillionDevs as his next objective.
@MakerDAO @compoundfinance @UniswapExchange @KyberNetwork @0xProject @InstaDApp @zerion_io @jinglanW @hosseeb @Lsquaredleland @ethereumJoseph Wallets. It's hard to keep track of ETH1 compatible wallets on the market: custodial (@coinbase), non-custodial (@metamask_io, @argentHQ), on-chain (@gnosisSafe , @multisHQ ), on-top (@WalletConnect ), whitelabel (@upvest, @portis_io ), in the browser... a cambrian explostion!
@MakerDAO @compoundfinance @UniswapExchange @KyberNetwork @0xProject @InstaDApp @zerion_io @jinglanW @hosseeb @Lsquaredleland @ethereumJoseph @coinbase @metamask_io @argentHQ @gnosisSafe @multisHQ @WalletConnect @upvest @portis_io Non-custodial wallets are the most impactful because they are making high-speed innovation in DeFi possible by letting software engineers create products without requiring licenses that are hard and long to get like the money transmitter licence. Massive innovation boosters!
@MakerDAO @compoundfinance @UniswapExchange @KyberNetwork @0xProject @InstaDApp @zerion_io @jinglanW @hosseeb @Lsquaredleland @ethereumJoseph @coinbase @metamask_io @argentHQ @gnosisSafe @multisHQ @WalletConnect @upvest @portis_io Available today. "Let's wait until ETH2 ships before starting our blockchain project" said no-one ever. Nobody is waiting for ETH2. Institutions, companies, governments will choose ("chose"?) the safest, most used & battle-tested smart-contract platform for their projects: ETH1.
@MakerDAO @compoundfinance @UniswapExchange @KyberNetwork @0xProject @InstaDApp @zerion_io @jinglanW @hosseeb @Lsquaredleland @ethereumJoseph @coinbase @metamask_io @argentHQ @gnosisSafe @multisHQ @WalletConnect @upvest @portis_io L2 that works. ZK Sync, ZK Rollup, Optimistic Rollup... we're now seeing exciting and realistic new L2 technologies on the ETH1 roadmap that could bring VISA-scale throughput while keeping funds as secure as the underlying L1. Even @ercwl agrees ;)
@MakerDAO @compoundfinance @UniswapExchange @KyberNetwork @0xProject @InstaDApp @zerion_io @jinglanW @hosseeb @Lsquaredleland @ethereumJoseph @coinbase @metamask_io @argentHQ @gnosisSafe @multisHQ @WalletConnect @upvest @portis_io @ercwl Time. Eth2 is far away! As @twobitidiot states in his 2020 report: "A late 2021 release for Phase 2 is optimistic. Before the end of 2022 would be a win." So "battle-tested ETH2" won't happen before at least 2024. In *four* years!
@MakerDAO @compoundfinance @UniswapExchange @KyberNetwork @0xProject @InstaDApp @zerion_io @jinglanW @hosseeb @Lsquaredleland @ethereumJoseph @coinbase @metamask_io @argentHQ @gnosisSafe @multisHQ @WalletConnect @upvest @portis_io @ercwl @twobitidiot This is why trying to make ETH2 a continuity of ETH1 is a waste of resources. For all of the above reasons, in 2024, DeFi on ETH1 will be have reached escape velocity and no DeFi project in their right mind will want to risk migrating to a new platform they simply don't need 🤷♂️
@MakerDAO @compoundfinance @UniswapExchange @KyberNetwork @0xProject @InstaDApp @zerion_io @jinglanW @hosseeb @Lsquaredleland @ethereumJoseph @coinbase @metamask_io @argentHQ @gnosisSafe @multisHQ @WalletConnect @upvest @portis_io @ercwl @twobitidiot Now let's examine why it would also be a good idea to *NOT* make ETH2 a continuity of ETH1:
@MakerDAO @compoundfinance @UniswapExchange @KyberNetwork @0xProject @InstaDApp @zerion_io @jinglanW @hosseeb @Lsquaredleland @ethereumJoseph @coinbase @metamask_io @argentHQ @gnosisSafe @multisHQ @WalletConnect @upvest @portis_io @ercwl @twobitidiot No technical debt. ETH2 is so different than ETH1. Why would we want to make ETH2 backward compatible with ETH1 (except at the EVM level of course)? If we're starting from a blank slate for ETH2, then let's go all-in. Trying to cram ETH1 in ETH2 massively complicates the task.
@MakerDAO @compoundfinance @UniswapExchange @KyberNetwork @0xProject @InstaDApp @zerion_io @jinglanW @hosseeb @Lsquaredleland @ethereumJoseph @coinbase @metamask_io @argentHQ @gnosisSafe @multisHQ @WalletConnect @upvest @portis_io @ercwl @twobitidiot Easier migration. Not only making ETH2 ETH1 compatible will cause unnecessary headaches but it also requires to plan a delicate and dangerous one-way migration. Asking users to burn ETH(1) to get ETH(2) will require a extraordinary leap of faith from ETH(1) holders
@MakerDAO @compoundfinance @UniswapExchange @KyberNetwork @0xProject @InstaDApp @zerion_io @jinglanW @hosseeb @Lsquaredleland @ethereumJoseph @coinbase @metamask_io @argentHQ @gnosisSafe @multisHQ @WalletConnect @upvest @portis_io @ercwl @twobitidiot Security. Whereas PoW-based consensus mechanism have now been battle tested, the economic security of PoS-based consensus mechanisms is not there yet. Doubts still exists regarding stakers centralization and cartelization. It'll take years before it's considered battle-tested.
@MakerDAO @compoundfinance @UniswapExchange @KyberNetwork @0xProject @InstaDApp @zerion_io @jinglanW @hosseeb @Lsquaredleland @ethereumJoseph @coinbase @metamask_io @argentHQ @gnosisSafe @multisHQ @WalletConnect @upvest @portis_io @ercwl @twobitidiot Non-DeFi projects won't wait for ETH2. While ETH1 has become a black hole for DeFi projects, non-DeFi ones are already starting to migrate to blockchains better suited to their needs, see the recent @AragonProject announcement to move to Cosmos: blog.aragon.one/aragon-chain/
@MakerDAO @compoundfinance @UniswapExchange @KyberNetwork @0xProject @InstaDApp @zerion_io @jinglanW @hosseeb @Lsquaredleland @ethereumJoseph @coinbase @metamask_io @argentHQ @gnosisSafe @multisHQ @WalletConnect @upvest @portis_io @ercwl @twobitidiot @AragonProject Efficient resource allocation. With Non-DeFi projects moving away from ETH1 and DeFi projects not moving away from ETH1, ETH2 will not be able to capitalize on most ETH1 projects. Hence it does not make sense to allocate brain cycles to make ETH2 backward compatible.
@MakerDAO @compoundfinance @UniswapExchange @KyberNetwork @0xProject @InstaDApp @zerion_io @jinglanW @hosseeb @Lsquaredleland @ethereumJoseph @coinbase @metamask_io @argentHQ @gnosisSafe @multisHQ @WalletConnect @upvest @portis_io @ercwl @twobitidiot @AragonProject Leader vs follower. While ETH1 is the leader of turing complete PoW-based blockchain, ETH2 will be a challenger in the turing complete PoS-based blockchain space. @tezos and @cosmos are leading the space and it's not clear to me what advantages ETH2 will bring to the table.
@MakerDAO @compoundfinance @UniswapExchange @KyberNetwork @0xProject @InstaDApp @zerion_io @jinglanW @hosseeb @Lsquaredleland @ethereumJoseph @coinbase @metamask_io @argentHQ @gnosisSafe @multisHQ @WalletConnect @upvest @portis_io @ercwl @twobitidiot @AragonProject @tezos @cosmos Free money. No ETH1 holder will blame developers if ETH2 ends up being a fork of ETH1. Like with BTC and BCH, holders will basically get a free lunch by getting ETH2 tokens while being able to keep their ETH1 tokens.
@MakerDAO @compoundfinance @UniswapExchange @KyberNetwork @0xProject @InstaDApp @zerion_io @jinglanW @hosseeb @Lsquaredleland @ethereumJoseph @coinbase @metamask_io @argentHQ @gnosisSafe @multisHQ @WalletConnect @upvest @portis_io @ercwl @twobitidiot @AragonProject @tezos @cosmos Now, you might be wondering why then ETH2 developers are working to make ETH2 the continuity of ETH1? I am not sure tbh, maybe because they didn't realize that it's simply not going to happen :) And that's why I am trying to open the conversation with my tweets.
@MakerDAO @compoundfinance @UniswapExchange @KyberNetwork @0xProject @InstaDApp @zerion_io @jinglanW @hosseeb @Lsquaredleland @ethereumJoseph @coinbase @metamask_io @argentHQ @gnosisSafe @multisHQ @WalletConnect @upvest @portis_io @ercwl @twobitidiot @AragonProject @tezos @cosmos It's important to have this conversation because the only real threat to Ethereum *today* would be to stop properly funding ETH1.x ETH1.x still faces important challenges that are critical to address. See this recent article from the @ethereum foundation: blog.ethereum.org/2019/12/10/eth…
@MakerDAO @compoundfinance @UniswapExchange @KyberNetwork @0xProject @InstaDApp @zerion_io @jinglanW @hosseeb @Lsquaredleland @ethereumJoseph @coinbase @metamask_io @argentHQ @gnosisSafe @multisHQ @WalletConnect @upvest @portis_io @ercwl @twobitidiot @AragonProject @tezos @cosmos @ethereum I think it would be best for *everyone* to start acknowledging that ETH1 is here to stay, to remove the difficulty bomb, to decide on the definitive ETH1 inflation schedule / strategy and to allocate proper funds to ETH1.xx development.
@MakerDAO @compoundfinance @UniswapExchange @KyberNetwork @0xProject @InstaDApp @zerion_io @jinglanW @hosseeb @Lsquaredleland @ethereumJoseph @coinbase @metamask_io @argentHQ @gnosisSafe @multisHQ @WalletConnect @upvest @portis_io @ercwl @twobitidiot @AragonProject @tezos @cosmos @ethereum ETH2 Developers will get less headache bringing ETH2 to life. ETH1 holders will happily receive ETH2 tokens without risking their stake of ETH1. Miners will happily continue securing ETH1 and the DeFi ecosystem will get the visibility it needs to thrive.
@MakerDAO @compoundfinance @UniswapExchange @KyberNetwork @0xProject @InstaDApp @zerion_io @jinglanW @hosseeb @Lsquaredleland @ethereumJoseph @coinbase @metamask_io @argentHQ @gnosisSafe @multisHQ @WalletConnect @upvest @portis_io @ercwl @twobitidiot @AragonProject @tezos @cosmos @ethereum Pinging a tiny sample of folks with skin-in-the-game in this: @VitalikButerin @koeppelmann @RuneKek @willwarren89 @rleshner @cz_binance @brian_armstrong @ethereumJoseph @jerallaire @delitzer @cburniske @fredwilson @FEhrsam @KyleSamani @joeykrug @_prestwich @ameensol @spencernoon
