#Ethereum was never rolled back or reorganized the blockchain. $BTC maxis use this as a talking point without knowing exactly what the DAO hack was or how it was resolved.

$ETH was NEVER rolled back, and the process to resolve the hack was as decentralized as possible.

🧵👇
2/First, we need to determine what a crypto rollback is.
In a nutshell, a rollback is a coordinated reversal of one or multiple validated transactions. In the context of blockchains, it is achieved via a 51% attack or by retroactively forking the network. The end result is such
3/that specific transactions are effectively erased and the chain is reorganized (causing a portion of mining rewards to be redistributed, and potentially other transactions to be reverted).

DAO hack and resolution:
The DAO smart contract had a security vulnerability that
4/allowed child contracts to be created and drain the funds from the parent contract. Per the DAO contract rules, funds transferred to child contracts couldn't be withdrawn until 41 days had passed. This gave the developers and the community time to decide if/what type of action
5/should be taken. An on-chain community vote was passed with 87% supporting a hard fork that would forcibly replace the compromised DAO smart contract with a new refund contract that allowed users to retrieve ether with their DAO tokens. The community had signaled approval,
6/but all protocol changes (including consensus rules and/or modifications to monetary policy) are implemented via a process called EIP. The DAO hack resolution was no different, and it was defined in EIP-779. When the fork went live, a small fraction of network participants
7/decided NOT to upgrade their nodes (this later became known as Ethereum Classic). Users who were unaware the original vote or fork took place now had the chance to sell their ETH tokens for ETC. The free market decided which network was the most valuable and ETH was the clear
8/winner.

Long story short, all users were given the opportunity to express their opinions, formally vote on a resolution and then later vote with their money; no user balances were lost/rolled back as a result of the irregular state change.

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More from @AdrianoFeria

3 Jul
1/A lot of Bitcoiners are unaware that Strike (the wallet used to distribute BTC in El Salvador) is a custodial service. Others are spreading the narrative that Strike preserves the properties of the LN because it is built on top of it; this is incorrect.

🧵👇
2/Strike is using the LN for their internal operations (multiparty channels). This does NOT mean that they offer the same fundamental properties of the LN to the end-users. Strike controls all private keys, and users NEVER have access to keys unless funds are withdrawn.
3/This is not different from any other custodial service that also allows users withdraw their crypto balance. The use of the LN for operations is only significant in reducing operational costs and providing the same service banks offer for a potentially cheaper
Read 15 tweets
1 Jul
1/ $ETH is MONEY, and it is more likely to become a global currency than $BTC.

Why?

🧵👇
2/Ether was created to finance the security of the network. It was designed to provide remuneration to miners (ether is used to PAY miners, and issuance is a form of subsidy). It's sole purpose is to function as a utility token, which is just a form of money that has a very
3/narrow scope. This is true for all PoW networks.

With that in mind, it is important to understand that money is not a binary attribute. It is a spectrum; Utility tokens are at one extreme end of it, and a global currency is at the other.

The interesting thing about ether is
Read 11 tweets
19 Jun
1/Concerning the security sustainability and monetary policies of $BTC vs $ETH... we need to talk about this.

The most important factor determining crypto sustainability is the total mining reward revenue (transaction fees). This is what finances the security of cryptos.
2/The higher the transaction fee revenue is, the more secure the network becomes.

Another important factor determining the security of a system is how the budget is spent. Efficiency yields more security per amount of resources spent. The more efficient a system is, the more
3/secure it becomes.

This is where monetary policy comes in. Issuance is only needed if the network's security would be deemed insufficient without it (aka not enough transaction fees). This is why issuance is effectively a subsidy. It is also why the purpose of monetary policy
Read 9 tweets
20 May
1/This comment from @udiWertheimer in the recent @BanklessHQ interview needs to be addressed:

“Bitcoin’s payment system malfunctioning is not the same as the asset losing value.”

The #Bitcoin payment system (the engine) cannot exist without $BTC the asset. There would be no
2/way to provide economic incentives for miners without bitcoin tokens, and miners would have nothing to process unless users have ownership of bitcoins. Conversely, the bitcoin asset cannot exist without the payment system because it is the only way users get to spend
3/their $BTC. A monetary asset that cannot be transacted would be completely worthless.

Bitcoin only exists within the context of its payment system. Therefore, the value of Bitcoin is entirely dependent on the soundness of the payment system because it is what guarantees
Read 4 tweets
28 Apr
1/8>Crypto maximalism is so incredibly arrogant. It fails to recognize the complexity of this subject, and it lacks the humility to accept the possibility of being wrong about your convictions.

$BTC, $ETH, and other maximalists, please take a minute to think about this 👇
2/8>Cryptos are part of a brand new asset class incredibly revolutionary and complex; no on in the world has a perfect understanding of it.
3/8>To fully comprehend cryptos you need to:

-Be an expert in computer science involving databases, networking, cryptography, virtualization and programming. Or trust in an expert who can comprehend and attest for the technological soundness.
Read 8 tweets

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