Reading time 4m26s
GM fam 👊
So the markets look bad, but they could be about to get even worse with a Federal Open Market Committee (FOMC) announcement tomorrow.
Looks like the Merge was a ‘buy the rumor, sell the news’ event, too.
Come on, nobody believes it will get that bad 👀
It ain’t good though, ETH is down 20% since the Merge.
But some believe it’s a bear trap.
- Do Kwon On the Run 💨
- ETH Layer 2s + 3s 📐
- GTA/Minecraft NFTs 🎮
- ETH PoW chain 📈
- SEC claims ETH 🙄
South Korea Asks Interpol to Issue Red Notice for Terra Co-Founder Do Kwon
Okay, this is getting good 🍿
Q: what’s a red notice?
A: a request to law enforcement worldwide to locate and provisionally arrest a person pending extradition, surrender or similar legal action.
In other words, South Korea ain’t playing - they absolutely intend to catch Kwon.
And when you put it like that, it kinda sounds like a novel STI that’s going around 🤔
Don’t wanna catch that 😝
I sure hope someone does though.
He says he’s not on the run, but authorities in Singapore reported that Kwon had left the city-state.
He’s totally not “on the run”.
He’s just out of town and the police happen to be chasing him 😅
What are Ethereum Layer 3s?
As promised yesterday, we got you.
Let’s start with layer 2s (L2s).
Here’s the problem:
Ethereum is very secure, and very decentralized by design, but it’s not as scalable as other blockchains (it can’t do as many transactions per second, essentially).
Also, fees are way too high ✅
Here’s a comparison of Ethereum against some other popular blockchains.
Don’t get it twisted - those other chains sacrifice something somewhere to get those costs and speeds, usually decentralization to some degree.
Layer 2s are a solution to this.
They basically offload the work to a second chain (or ‘channel’) that is ultimately recorded back on the base chain (Ethereum); they improve scalability.
There are a bunch of different ways they try to do this.
The problem with all these solutions is that they only take the Ethereum network from ~15 tx per second to ~2000-4000 tx per second.
That’s clearly a lot better, but if Ethereum wants to become the base network for all of web3, they’ll need even more.
The above is a proposition by Starkware for how they envision L3 solutions (and you’ll notice there’s even space for L4s).
It all gets complicated from here because you need to understand what Starknet is to understand this solution, and it’s not the only proposed L3 framework.
It’s basically just like adding another L2 to the existing L2.
So imagine an L2 can do 2000-4000 tx per second, and then you add another L2 on top that can also do 2000-4000 tx per second.
The function goes from quadratic to exponential as you could theoretically add 2000-4000 different L3 solutions to a single L2, and there can be multiple L2s running at once.
If this all went over your head, don’t worry.
It just means that the scaling issues for Ethereum are being dealt with.
This is how Ethereum will work for things like gaming and voting in DAOs, which currently have high gas fees associated for each transaction (you have to pay gas to vote in a DAO or trade an item in a game, for example).
L2s and L3s save you $$.
Which is NOT an L2?
Tap your answer below to see if you’re right!
Web3 Pipeline 📢
NFTs in GTA 5 and Minecraft - we spoke yesterday about whether or not NFTs will appear in GTA 6, but it turns out they’re already launching in some custom GTA and Minecraft servers. Blockchain gaming protocol Enjin and MyMetaverse have teamed up to launch interoperable NFTs for the servers they run. “These different games read the user's wallet, see that they own the NFT, and provide them different benefits in the games. [...] In Minecraft, this NFT is a sword. In GTA the NFT is a car and in Infinity Realms, the NFT is a house,” explained MyMetaverse CEO Simon Kertonegoro in an interview with CoinTelegraph. If this goes well, it could convince Rockstar to implement its own NFTs for GTA 6.
Ethereum PoW fork surges 40% - we spoke a lot about this proof-of-work fork pre-Merge; everyone thought it was just miner greed. Turns out it’s actually making some technical progress by implementing new bridges, and it was listed on Binance yesterday. Seems like there might actually be a future where both forms of Ethereum exist.
SEC tries to claim ETH as US jurisdiction - arguments from a Sept 19 lawsuit against a crypto influencer stated that Ethereum transactions fall under US jurisdiction because more Ethereum nodes are running in the US than in any other country, and therefore any transaction on Ethereum should be assumed to have taken place inside the US. It’s unclear if this argument will hold up, but currently 42.56% of the 7807 Ethereum nodes are situated in the US. Crypto enthusiasts consider this to be gross overreach.
Deadmau5 x Sandbox - one of the world’s hottest DJs is entering the Sandbox metaverse via their new Tower of Light game experience. So far the drop is vague and intentionally mysterious, but we know there will be just 15 NFTs at a price of around $179 - $1,797 (in Sandbox’s native currency, SAND). This isn’t the first time Deadmau5 has ventured into web3; he’s been using blockchain technology seamlessly to reach more fans and promote his music.
Amber Island Whiskey NFTs - if you’re a whiskey lover, you’ll want to check this out. An exclusive club for whiskey lovers that offers real-world experiences and access to premium whiskeys. Only 999 keys exist, don’t miss yours for 0.15 ETH!
NFT drops of the day 👀
RadCats 🐱 | 2.5 (SOL)
Sept 23 - 4 brands under one rad roof: RadRacing, CodeRad, RadWear and RadExperience
🛑 NOTE: drops not promoted/endorsed
✅ DYOR and practice safe minting!
Anyone remember the children's book called ‘Where’s Waldo’?
Some madlad made a Do Kwon version and it’s brilliant 😅
That’s all for today frens!
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DISCLAIMER: This is not financial advice. This newsletter is strictly educational and is not investment advice to buy or sell any assets or to make any financial decisions. Do your own research.