The Disrupt Weekend

Real World Assets (RWAs) have always been the black sheep of DeFi. Not only are RWAs here to stay, they will come to dominate the crypto industry.

Deeds of ownership to any real property (from homes to cars to industrial manufacturing plants to livestock ranches in Montana) will be recorded on-chain. Just as stock ownership has progressed beyond a piece of paper, it will soon progress beyond the walled gardens of Wall Street brokerages. All financial instruments will be issued natively on-chain!

Companies will no longer be forced to seek the services of investment bankers to IPO. They will raise in hyper-competitive, open markets accessible to any KYC’d individual. Investors in Nigeria will have the same opportunities to invest in American tech companies as their peers around the globe, while companies in Nigeria will be able to IPO in the same markets and receive equal consideration to their American counterparts.

The solvency and financial standing of any entity can be audited in real time with zk-proof technology. Because ALL assets are issued on-chain and ALL liabilities are assumed on-chain, the solvency of any bank, exchange, pension, insurance plan, private fund, or individual borrower tied to a unique identifier is immediately known.

Transaction costs will be greatly reduced. Markets will have greater certainty in their counterparties.

How Do We Get There? We cannot onboard the world to the blockchain if we cannot get the institutional gatekeepers comfortable with our technology. Crypto must meet the market where it is and show it why we have the better system. Once we begin to port sizable real world liquidity on-chain, the disadvantages of remaining insulated in trad markets grow larger, incentivizing even greater blockchain adoption and setting off a flywheel of network effects.”

“Web2 social media today clearly has no shortage of issues. Arbitrary censorship. No interoperability of social capital. Lack of innovation. Misuse of data. Opaque algorithms. Asymmetric power in monetization. The list goes on. Thanks to improvements in blockchain technology, we’re starting to see a breakthrough in credible solutions being developed.

The first thing to know about decentralized social media is that efforts are around building protocols, not platforms. Just as Elon Musk cannot buy the SMTP email protocol or the HTTP internet protocol and change its rules unilaterally, the goals surrounding web3 social protocols are to create decentralized, uncensorable, open protocols that let developers build customizable apps on top of them.

Some of the biggest players at work in this space right now are Lens, Farcaster, and DeSo. They take vastly different architectural routes, but they’re all headed toward that same goal.

Lens is a decentralized social media protocol built on Polygon by the brain behind the DeFi giant Aave — Stani Kulechov. Launched in 2022 amid the mainstreaming of NFTs, Lens fully leverages the ERC-721 non-fungible token standard to build a truly decentralized ecosystem.

The use of NFTs pervades Lens Protocol. When you create a Lens profile, it is minted as an NFT in your Ethereum wallet. When you follow someone on Lenster, you mint a “Follower” NFT on-chain. And so on for any posts that you “collect”, make or share (called “mirroring”). It’s a decentralized social graph that exists on the blockchain, empowering users with full ownership over their social identities.

Consider the inflexibility with YouTube today. Creators have no choice but to use YouTube Studio to manage their monetization, analytics or arrange their playlists. Meanwhile, YouTube viewers are forced into one method of consumption.

Lens solves this by unbundling the tools of creation and tools of consumption. Users are free to consume videos on any consumption platform of their choice. If a Bankless video is uploaded on Lens, you’re free to watch it on any app that supports the protocol. Both devs and users are able to customize their building/user experience without being siloed.

As of December 2022, Lens has a total of ~98K total users with ~35K monthly active users. A total of 7.9 million relay transactions have been processed through Lens’ gasless API relay since June, making it ~4% of all Polygon’s transactions. 🤯”

“We identify Taiko as a decentralized Ethereum-equivalent ZK-Rollup. A decentralized rollup is one where any user can be sure that their transaction will be executed and one where multiple parties can participate in each network position – that is, as proposers, provers, and node runners.

We can decentralize a rollup by ensuring all roles can be performed by multiple parties – ideally a vast and geographically-diverse set. Those roles are:

  • Proposers – construct rollup blocks from users’ L2 transactions and propose them to L1. Sometimes these are referred to as Sequencers. Proposers decide which transactions to include in a block and how to order them. This is a powerful position as it can extract profit from transaction ordering and decide which transactions to exclude.
  • Provers – generate SNARK proofs asserting the validity of L2 transactions and blocks from the aforementioned proposed blocks. This position decides when a block can reach its on-chain verified state.
  • Node runners – execute transactions from on-chain (L1) data to stay in sync with the rollup state. Proposers and provers need to run full rollup nodes to fulfill their respective roles.

The current approach chosen by most in-production general-purpose rollups has been one of centralization at first, with a commitment to progressive decentralization over time. This has made some sense, as there are several moving pieces, assumptions to test, and it is early. Having a centralized proposer and prover (aka sequencer and validator in broader terms) has made it more simple to ensure the proper and efficient functioning of the rollup.

Taiko, on the other hand, aims to go live with a fully decentralized (and permissionless) proposer and prover set. The protocol will not enshrine or allowlist any parties; anyone will be able to perform those duties.”

Bull Case for Ethereum IV with Justin Drake, DCinvestor, & Anthony Sassano

“The Decentraland Foundation is thrilled to announce ‘Worlds’, personal 4 parcel-large spaces tied to Decentraland NAMEs that exist separately from Decentraland’s Genesis City and its system of LANDs. Worlds can best be thought of as your own personal 3D space in the metaverse. You can shape the space however you like, create a grassy meadow or maybe a neon-lit nightclub, and even invite people to visit.

While Worlds cannot be sold or traded in themselves, they are intended to serve as a place for Decentraland citizens to build, experiment, and host events and even interactive experiences without having to own LAND.”

“Leading decentralized finance (DeFi) aggregator 1inch Network announced a major upgrade — Fusion — around its 1inch Swap Engine. The Fusion mode in 1inch Swap Engine allows DeFi investors to place orders with a predecided price and time range without paying network fees.

Fusion makes swaps on 1inch dramatically more cost-efficient, as users won’t have to pay network fees, plus, an extra layer of security is added, protecting users from sandwich attacks.”

See Also: Japan to lift the ban on foreign stablecoins like USDT in 2023

“The US SEC has requested to seal the infamous Hinman Speech documents, claiming that they are not relevant to the court’s summary judgment decision. The SEC’s request has sparked criticism from the crypto community.

The Hinman Speech documents refer to the speech given by former SEC Corporation Finance Division Director William Hinman at the Yahoo Finance All Markets Summit in June 2018, where he reportedly stated that Ether (ETH), the native token of the Ethereum blockchain, is not a security. Ripple believes it is a vital piece of evidence to help them with its case against the U.S. regulator.

The SEC was previously denied by the courts to keep Hinman documents a secret, with the U.S. judge calling out the SEC’s hypocrisy for doing so.”