The Disrupt Weekend

Crypto Will Set You Free

“When put to even the mildest of tests in late 2021, the alt-L1 narratives unraveled amazingly fast. Not only are monolithic L1s unsustainable, they will actually never be able to offer the throughput required to begin with — and miss the mark by several orders of magnitude. It’s simply not a question anymore— we need modular execution layers & data availability sampling to scale blockchains. The sooner we recognize and pivot to this, the better the blockchain industry will be for it.

For application-specific chains, ZKRs are the best solution already for most cases. This should be very obvious to anyone who has used dYdX, zkSync, Loopring or Immutable X (though not a rollup). There are some trade-offs, but all that will be plugged in by the end of the year. (See: dYdX V4)

Smart contracts: monolithic L1s have one more year of relevance. The writing’s on the wall, and there’s no escape other than emergency pivoting to the fraud proofs, validity proofs & DA proofs.

Optimistic rollups will scale up faster than ZKRs. A lot of their codebase is already maturing, and once sequencing & upgradeability are decentralized, they’ll be ready for mass adoption. It’s possible by the end of 2022 ORs have sub-cent gas fees, are fully decentralized, and materially the same security and finality as Ethereum, with ample liquidity for fast withdrawals. They’ll continue improving as statelessness & state expiry are implemented over 2023.

ZKRs will continue evolving, maturing, and being battle-tested, optimizing proving times, moving to GPU and finally ASIC provers. Their novel VMs and sequencer nodes will mature and scale up over time too. By the end of 2023, I expect ZKRs to have caught up to and edged out ORs. But ORs will continue to be relevant till 2024/25, by which time I expect most ORs to become ZKRs or at least replace their fraud proof systems with validity proofs.”

“The European Union has “resolved” to isolate Russia from the international financial system, including by blocking some banks from the Society for Worldwide Interbank Financial Telecommunication (SWIFT), the messaging network underpinning global financial transactions.

In blocking Russia from SWIFT, the European Union would block Russian institutions from conducting any interbank transactions with non-Russian entities, effectively cutting it off from the global financial system. Germany is in favor of “targeted and functional” restrictions.

We are working flat out on how to limit the collateral damage of decoupling from SWIFT in such a way that it affects the right people.

The EC also committed to blocking the Russian Central Bank from using its international reserves and preventing Russian oligarchs from buying passports in other nations to reenter the global financial system.”

See Also: “I’m In Shock”: Russians Scramble To Pull Money From ATMs As Bank Runs Begin
See Also: All Hell Breaks Loose As Global Markets Open: Stocks Crash, Oil & Gold Surge
See Also: Russia Central Bank Bans Selling Of Russian Securities By Foreigners

“Maker at its core is not a lending facility. Maker’s main product is the DAI stablecoin. Lending is simply how we control the peg. Instead of competing with products like Aave and Compound, we could instead provide them with privileged access to mint DAI on demand. This would allow Maker to get exposure to part of Aave’s user base. In exchange Aave gets access to stable interest rates. It’s a win-win.

Instead of competing on the retail side of things, Maker could instead delegate minting rights authority to protocols that specialize in particular market segments. The low hanging fruit is the crypto-lending markets, but there is no reason this cannot be attached to real world lending markets such as Maple or others.

This is similar to the relation between commercial and central banks. Central banks provide liquidity to commercial banks which in turn can offer highly specialized services to their customers. It’s not the job of Maker to be the best at everything. We can use the DeFi legos to construct something bigger than the sum of its parts.

Eventually DAI will de-peg from the USD as it becomes competitive as one of the global reserve currencies. This is the end state of Maker I see — a rock solid, credibly neutral foundation to for the world to transact on.”

The official Twitter accounts of the Ukrainian government and Vice Prime Minister Mykhailo Fedorov provided wallet addresses for donations of bitcoin (BTC), ether (ETH) and the stablecoin tether (USDT). The Ethereum wallet has received just over $3.9 million in donations as of 22:39 UTC. The Bitcoin wallet has received $970,000.

This is not the first instance of using cryptocurrencies to aid Ukrainians in their battle against the Russian invasion. A digital wallet raising funds to support the Ukrainian army has received almost $6 million in bitcoin.”

See Also: New DAO Raises $3 Million in ETH for Ukrainian Army

“Stagflation describes an economy with higher-than-normal inflation and unemployment rates but little to no economic growth. The last time the U.S. economy entered such a state was in the 1970s, when former President Richard Nixon took the United States off the gold standard.

With bitcoin seen by many digital-asset investors as a hedge against inflation, and by others as a risky asset whose price could fall during a lousy economic stretch, the “S-word” might soon start creeping into the lexicon of the crypto-markets narrative.

Stagflation is a reality. Because of the positive correlation between crypto and the NASDAQ, the stagflation playbook could certainly hurt the crypto markets.

He predicts high demand for Treasury bonds, U.S. dollars, gold, consumer staples and real estate, and he’s bullish on small-cap stocks – companies with a market capitalization below $2 billion – and tech.”