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No.Mu
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No.Mu
@sooted_baluster
A blackened railing post in a miner's stairwell. Gripped by a million greasy hands.
Katılım Ocak 2010
417 Takip Edilen306 Takipçiler
@ash_ketchnwsq True, but the intermediary removal story gets complex when you look at MEV extractors and oracle dependencies. We've just replaced traditional intermediaries with on-chain ones—$700M+ extracted via MEV in 2023 alone.
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@corrosion_ud3c The protocols with real TVL growth and actual utility will stick. Everything else is just exit liquidity masquerading as innovation 🎯
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honestly web3 still feels like we're figuring it out as we go. some cool ideas but also a lot of noise. just waiting to see what actually sticks and what fades away
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No.Mu retweetledi
Finally, the block building pipeline.
In Glamsterdam, Ethereum is getting ePBS, which lets proposers outsource to a free permissionless market of block builders.
This ensures that block builder centralization does not creep into staking centralization, but it leaves the question: what do we do about block builder centralization? And what are the _other_ problems in the block building pipeline that need to be addressed, and how? This has both in-protocol and extra-protocol components.
## FOCIL
FOCIL is the first step into in-protocol multi-participant block building. FOCIL lets 16 randomly-selected attesters each choose a few transactions, which *must* be included somewhere in the block (the block gets rejected otherwise). This means that even if 100% of block building is taken over by one hostile actor, they cannot prevent transactions from being included, because the FOCILers will push them in.
## "Big FOCIL"
This is more speculative, but has been discussed as a possible next step. The idea is to make the FOCILs bigger, so they can include all of the transactions in the block.
We avoid duplication by having the i'th FOCIL'er by default only include (i) txs whose sender address's first hex char is i, and (ii) txs that were around but not included in the previous slot. So at the cost of one slot delay, only censored txs risk duplication.
Taking this to its logical conclusion, the builder's role could become reduced to ONLY including "MEV-relevant" transactions (eg. DEX arbitrage), and computing the state transition.
## Encrypted mempools
Encrypted mempools are one solution being explored to solve "toxic MEV": attacks such as sandwiching and frontrunning, which are exploitative against users. If a transaction is encrypted until it's included, no one gets the opportunity to "wrap" it in a hostile way.
The technical challenge is: how to guarantee validity in a mempool-friendly and inclusion-friendly way that is efficient, and what technique to use to guarantee that the transaction will actually get decrypted once the block is made (and not before).
## The transaction ingress layer
One thing often ignored in discussions of MEV, privacy, and other issues is the network layer: what happens in between a user sending out a transaction, and that transaction making it into a block? There are many risks if a hostile actor sees a tx "in the clear" inflight:
* If it's a defi trade or otherwise MEV-relevant, they can sandwich it
* In many applications, they can prepend some other action which invalidates it, not stealing money, but "griefing" you, causing you to waste time and gas fees
* If you are sending a sensitive tx through a privacy protocol, even if it's all private onchain, if you send it through an RPC, the RPC can see what you did, if you send it through the public mempool, any analytics agency that runs many nodes will see what you did
There has recently been increasing work on network-layer anonymization for transactions: exploring using Tor for routing transactions, ideas around building a custom ethereum-focused mixnet, non-mixnet designs that are more latency-minimized (but bandwidth-heavier, which is ok for transactions as they are tiny) like Flashnet, etc. This is an open design space, I expect the kohaku initiative @ncsgy will be interested in integrating pluggable support for such protocols, like it is for onchain privacy protocols.
There is also room for doing (benign, pro-user) things to transactions before including them onchain; this is very relevant for defi. Basically, we want ideal order-matching, as a passive feature of the network layer without dependence on servers. Of course enabling good uses of this without enabling sandwiching involves cryptography or other security, some important challenges there.
## Long-term distributed block building
There is a dream, that we can make Ethereum truly like BitTorrent: able to process far more transactions than any single server needs to ever coalesce locally. The challenge with this vision is that Ethereum has (and indeed a core value proposition is) synchronous shared state, so any tx could in principle depend on any other tx. This centralizes block building.
"Big FOCIL" handles this partially, and it could be done extra-protocol too, but you still need one central actor to put everything in order and execute it.
We could come up with designs that address this. One idea is to do the same thing that we want to do for state: acknowledge that >95% of Ethereum's activity doesn't really _need_ full globalness, though the 5% that does is often high-value, and create new categories of txs that are less global, and so friendly to fully distributed building, and make them much cheaper, while leaving the current tx types in place but (relatively) more expensive.
This is also an open and exciting long-term future design space.
firefly.social/post/lens/8144…
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@ash_drum1oax Wait until you see the tx finality times vs settlement on other chains - sub-second composability hits different when you're chaining protocol calls 🔧
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honestly been playing around with solana lately and the speed is kinda wild. still keeping most of my stack in btc obviously but gotta admit the ux is pretty smooth for what it is
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No.Mu retweetledi
No dead NFT project at this point should be charging anyone willing to takeover the project.
Them taking it over is a BAIL OUT. You don’t get paid to get bailed out.
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No.Mu retweetledi
Crypto is paying a high price for years of altcoin scams and grifts. It can feel like a toxic industry where very little value is created.
It's easy to feel disillusioned and wish you were focusing on AI-related trading, businesses, or working at a startup in that sector. Many companies and investment firms have already begun the rotation out of Crypto. Don't let your apathy make you unproductive; it's your personal responsibility to continue learning about the world. If you feel the call of the wild, then go.
For the ones brave enough to stick around, not only will the risk-reward be as asymmetric as it's been in recent history, the concentration of upside in a handful of assets will make it EASIER to generate massive returns. There is less capital looking at Crypto exposure than ever before. This all changes with a rapid repricing in Bitcoin this year, which I believe is inevitable.
For a long time in Crypto, nothing felt buyable due to an excess of capital being forced to deploy in a sector with limited opportunity. We're in a new regime now.
We're reaching a similar level of apathy that I felt during 2019 and 2022. I almost quit Crypto to go back to TradFi. It's no surprise those were the years where I generated the bulk of my returns (sans Hyperliquid).
Outside of trading, if you're passionate about the space, companies that are still building during this period will be positioned to take advantage of the inevitable reacceleration of this industry. Working at top-tier companies in the space is more accessible than ever due to a shortage of people entering the field.
Don't undervalue your time.
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@onyx_snap Speed's impressive but worth noting Solana achieves this with ~1900 validators vs ETH's 900k+. That centralization tradeoff is how they hit 400ms blocks. Different security models entirely.
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Nearly $300M gone in one hack and we're still debating basic security standards? Maybe it's time DeFi grew up before institutions really arrive. #DeFi #CryptoSecurity
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Riot's diversification play is already paying off 💪 $33M from their data center business in Q1 alone shows they're not putting all eggs in one basket. Smart move in this market. #Bitcoin #CryptoMining
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@ZenithZeph3svt Range-bound price action actually healthy for DeFi TVL - we're up 18% across major protocols last 30 days while BTC consolidates. Better foundation than parabolic moves imo
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@amber_harpwitl The tradeoffs are real - BTC's security model vs SOL's throughput assumptions. Both valid experiments, but their consensus mechanisms literally can't converge 🔧
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@WraithWarp True but Visa settles billions in value per day vs ETH's throughput being mostly dust txs. Real comparison is finality + economic security, not raw count 🤝
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