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Why should you care about Ethereum Layer-2?

thecryptojournal.substack.com

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Re: Why should you care about Ethereum Layer-2?

#41

Post by CurrentB »

lottin wrote: post #40
CurrentB wrote: post #32

Earlier quoted context omitted.

There's no reason why Blockchains can't also incorporate their own trust model to facilitate lending that isn't fully collateralized. There are already projects working towards this. Pseudonymous p2p lending isn't some impossible thing. The current frothy state of crypto, unsustainable as it may be, is evidence that people are willing to trust crypto projects enough to give them money if there's a chance of getting s…

Debt financing is definitely not simply harder but entirely impossible. If you think otherwise, please explain how the borrower can be made to repay the debt with this technology.

Borrowers cannot be "made" to repay debt in traditional finance either. Lenders must make decisions based on some measure of the credit worthiness of potential borrowers. The same mechanisms could be replicated on blockchains. See:

https://docs.truefi.io/faq/ https://teller.gitbook.io/teller-docs/protocol-1/overview

Re: Why should you care about Ethereum Layer-2?

#42

Post by sterlind »

ShamelessC wrote: post #19
sterlind wrote: post #15

Earlier quoted context omitted.

a defense of it, from someone who's not in the cryptocurrency scene: blockchains are useful because they offer decentralized centralization. Ethereum has no policies, no embargoes, it's a neutral platform. this is because everyone can agree that what's on Ethereum is canon, and everyone can access Ethereum (except for how pricey gas is.) this is the opposite of federations where servers host their own state, with the…

Can you clarify what "not in the cryptocurrency scene" means? You seem to be a proponent.

I haven't invested in cryptocurrency besides a small amount of Bitcoin more than half a decade ago (which I subsequently got locked out of.) I've never worked for any company doing anything blockchain-related. I was enthusiastic early on (2011) but became jaded by seeing how environmentally awful Proof of Work is, and how PoS has stalled.

I find trustless/decentralized protocols intellectually interesting. I didn't count myself as a proponent because I don't have skin in the game.

Re: Why should you care about Ethereum Layer-2?

#43

Post by drog »

ricochet11 wrote: post #10
dcposch wrote: post #7

Kneejerk dismissals here are sad to see. L2 is, in my view, some of the most interesting research happening in computer science right now. The article above is not a great explanation--in particular, L2s are not off-chain as the article presents. The point of L2 is that it on-chain, inheriting the security and censorship resistance guarantees of L1. To simplify: L2 is about creating a fast, high throughput state mach…

agree, ZKProofs are really interesting and i'm sure they will come to be used across lots of areas of the web and not just blockchain, though their use and development is most active in the blockchain space for how useful they are for privacy+scalability. Proving knowledge without revealing information allows us to prove computations (validating them is a lot quicker than repeating the computation) and "use things" w…

> i'm sure they will come to be used across lots of areas of the web and not just blockchain

Totally agree with this. After working closely with zk I noticed that it boosts your thinking about decentralized protocols in the same way as knowing about signatures or hashes.

Right now infrastructure for doing zk is in “alpha” stage and different proving systems and optimizations are fairly new and not widely used. I believe it will grow bigger It’s very exciting field.

(I worked on zk rollup called zksync but zk rollups are only one of the use cases for zk proofs)

Re: Why should you care about Ethereum Layer-2?

#45

Post by lottin »

CurrentB wrote: post #41
lottin wrote: post #40

Earlier quoted context omitted.

Debt financing is definitely not simply harder but entirely impossible. If you think otherwise, please explain how the borrower can be made to repay the debt with this technology.

Borrowers cannot be "made" to repay debt in traditional finance either. Lenders must make decisions based on some measure of the credit worthiness of potential borrowers. The same mechanisms could be replicated on blockchains. See: https://docs.truefi.io/faq/ https://teller.gitbook.io/teller-docs/protocol-1/overview

What? Of course borrowers can be made to repay the debt in traditional finance. Get a loan from your bank, and refuse to pay it back. See what happens. If don't understand the basic mechanisms behind a loan agreement, there's no point in continuing this conversation.

Re: Why should you care about Ethereum Layer-2?

#46

Post by Jasper_ »

stavros wrote: post #13
bruce343434 wrote: post #11

Earlier quoted context omitted.

Why isn't etherium deprecated then and everyone moves to polygon? What's the catch?

Ethereum is slated to use proof of stake soon too (no idea how soon, AFAIK it was supposed to be last December).

It was delayed. Again. https://eips.ethereum.org/EIPS/eip-4345

The URL slug saying "may-2022" while the title says June 2022 really exudes confidence, too.

Re: Why should you care about Ethereum Layer-2?

#48

Post by tata71 »

JaimeThompson wrote: post #33
cle wrote: post #21

Earlier quoted context omitted.

> This is possible because polygon uses a different concencus model (proof of stake) than ethereum (proof of work). Does this mean Polygon will become obsolete when Ethereum moves to PoS?

>when Ethereum moves to PoS The Sun having entered the red giant phase will take out Polygon long before Ethereum actually moves to PoS.

If you don't think it'll happen 2022, I have some Ethereum Classic to sell you.

Re: Why should you care about Ethereum Layer-2?

#49

Post by ShamelessC »

sterlind wrote: post #42
ShamelessC wrote: post #19

Earlier quoted context omitted.

Can you clarify what "not in the cryptocurrency scene" means? You seem to be a proponent.

I haven't invested in cryptocurrency besides a small amount of Bitcoin more than half a decade ago (which I subsequently got locked out of.) I've never worked for any company doing anything blockchain-related. I was enthusiastic early on (2011) but became jaded by seeing how environmentally awful Proof of Work is, and how PoS has stalled. I find trustless/decentralized protocols intellectually interesting. I didn't c…

Fair enough - thanks!

Re: Why should you care about Ethereum Layer-2?

#50

Post by stavros »

Jasper_ wrote: post #46
stavros wrote: post #13

Earlier quoted context omitted.

Ethereum is slated to use proof of stake soon too (no idea how soon, AFAIK it was supposed to be last December).

It was delayed. Again. https://eips.ethereum.org/EIPS/eip-4345 The URL slug saying "may-2022" while the title says June 2022 really exudes confidence, too.

Oh yay :(
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