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hikaru

@hikaru

16 Following
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hikaru
@hikaru
Interesting, isn’t this obvious to L2 teams? Maybe due to the current weak security, low requirements could be useful?
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hikaru
@hikaru
A mature and simple L2 that is almost immutable is equivalent to a secure and sophisticated L1. Minimal enshrinement is the better approach.
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hikaru
@hikaru
I never found the energy expenditure argument to be a strong one against public blockchains, as they are well worth the cost. The better arguments for PoS are recoverability from attacks, and higher economic security per unit.
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hikaru
@hikaru
Assume that almost all eth is staked, this would effectively result in a fixed cap monetary model, similar to bitcoin currently. This means that security would be dependent on protocol revenue, which introduces many risks.
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hikaru
@hikaru
I don’t think that’s quite right; technical decentralization and scalability can be easily achieved. The only important measure is credible neutrality (which necessitates censorship-resistance). Scaling is also not necessary; but useful.
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hikaru
@hikaru
It is primarily that.
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hikaru
@hikaru
I'm glad, but please see my second reply so you don't take it too seriously haha.
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hikaru
@hikaru
If security was primarily derived from money, then it would be separate and far larger than the value of the ecosystem. Of course, this is based on a long time frame, so you could say it's speculative.
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hikaru
@hikaru
Yes, the current technical landscape suggests that scaling could effectively reduce L1 fees to negligible levels or, at best, result in weak security. Moreover, there's another problem with revenue-based security, which is systemic complexity, as the app layer might be able to intervene in the consensus layer.
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@hikaru
I do think the use cases on top of ethereum will be very valuable, but this is different from revenue and value capture. Revenue can be fees and mev capture, both of which tend to zero assuming a sufficiently long time frame — even with a valuable ecosystem.
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hikaru
@hikaru
The problem with this view is that it would become unsustainable if L1 revenue tends to zero, which would be the case unless scaling is limited.
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hikaru
@hikaru
More “eth is money” narrative. Less “eth is ultrasound money / deflationary” narrative.
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hikaru
@hikaru
I completely agree with this. Lack of privacy could undermine major protocols, and it should be prioritized at least in theory.
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@hikaru
I would say with no self custody.
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@hikaru
I believe it's beyond amplification. The applications you mentioned significantly benefit from having a cult (more upgrades, better ecosystem), but it's not strictly necessary to function. Blockchains derive their entire value from this property.
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@hikaru
Blockchains are cults. Nevertheless, I agree that one should not provide invalid decentralization or tech critiques.
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@hikaru
Only a handful of chains will be successful L1s. The others would/should pivot to L2s.
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@hikaru
Yes, more of a definition than an analogy.
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@hikaru
I prefer "state machine" over "infrastructure for computation": - trust-minimized state machine. - neutral state machine. Do you find this less/more accurate?
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hikaru
@hikaru
Hey. No, it isn’t related to anything.
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