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10th July 2023 > > Proto-Danksharding.


tl;dr

Techies let themselves down again. ETH is scaling up big time for the benefit of us all.


Market Snap








Market Wrap

BTC flirting with breaching $30k to the downside finds me checking prices far too often during the day. I should probably get a proper job.


Occasional Series – Furlough

I saw an interesting comment by Sir Jim Ratcliffe. Regular readers know that quantitative easing guarantees a transfer of wealth from the poorest to the richest. Regular readers know that quantitative easing in a closed economy causes inflation. But Jim has an additional slant which I find instructive:


Furlough … “Everyone gets used to it … What do you think follows? It is the definition of inflation, because suddenly the currency doesn’t represent the same amount of value ...” because you have been giving it away.


The chief architect of furlough was Rishi Sunak, and his reward will be to go down in history as throwing away a commanding majority in parliament in exchange for the smallest number of seats the Tories will have ever had.


The exact opposite of furlough (aka giving away money for free) is the fixed, immutable supply of BTC at 21mm coins.


Curious Cryptos’ Commentary – Technical Analysis

“On the daily chart, the price has repeatedly tested the $30K level since breaking above it recently. While this level has provided support so far, there are concerning indications in the form of a bearish divergence seen in the RSI indicator. This suggests the possibility of a correction or reversal in the near term. Should a decline occur, the 50-day and 200-day moving averages at approximately $28K and $26K marks, respectively, could act as significant support levels. Conversely, if the price continues its upward momentum, a move toward the $38K resistance zone becomes a plausible scenario.”


So, if BTC goes down in price, it goes down in price.


If BTC goes up in price, it goes up in price.


Thanks for that insight, matey boy, I just don’t know what I would do without you.












Curious Cryptos’ Commentary – Proto-Danksharding

For those of you who haven’t been put off by the title of this piece, I applaud your dedication.


EIP-4844 “sets the foundation for data sharing” using the “data blob”:



Hmm.


L2 (Layer-2) solutions for both BTC and ETH result in faster and cheaper transactions. Some have worried about the security and reliability of L2 but apart from some isolated incidents of scams and hacks I personally believe they have proven their worth.


For some technical reasons that frankly escape me (if you can explain them to me, I would be delighted to listen) L2 rollups are limited in terms of how much data they can process, and how cheaply they can process that data.


Proto-Danksharding is the first step to addressing these limitations. It is estimated that it will allow the Ethereum network to scale to more than 100,000 TPS (transactions per second), which is an impressively large number next to Bitcoin’s 7 TPS, Visa’s 24,000 TPS, and Mastercard’s 5,000 TPS. Getting to 100,000 blows the competition out of the water if speed is important to you.


In Proto-Danksharding, rollup data is provided for a limited amount of time – between one and three months – the “data blob”. After that the individual transactions, detailed off-chain, are deleted and it is just the summary of all those transactions that is stored forever more on-chain.


Once they have read that last sentence, I now hear the cries of anguish from the maxis, but I have learnt it is best to ignore them. Particularly at parties. Girls tend not to want to talk to a maxi, so any association with one is not going to improve your chances of getting lucky.


But between us let’s look at the benefits of Proto-Danksharding:


- Quicker transactions.

- Cheaper transactions

- More privacy (no doubt that this new tech can replace the ETH equivalent of mixers).


Full-on Danksharding is several years away but has the promise of millions of TPS. Just try to imagine how that looks in practice.


The possibilities are endless, especially when allied with AI.

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