WEBVTT Kind: captions Language: en 00:00:01.160 --> 00:00:06.690 align:start position:0% [Music] 00:00:06.690 --> 00:00:06.700 align:start position:0% 00:00:06.700 --> 00:00:14.230 align:start position:0% [Music] 00:00:14.230 --> 00:00:14.240 align:start position:0% 00:00:14.240 --> 00:00:17.510 align:start position:0% cool<00:00:15.120> uh<00:00:15.559> thanks<00:00:15.799> for<00:00:16.000> coming<00:00:16.840> um<00:00:17.160> I<00:00:17.279> know<00:00:17.400> it's 00:00:17.510 --> 00:00:17.520 align:start position:0% cool uh thanks for coming um I know it's 00:00:17.520 --> 00:00:20.390 align:start position:0% cool uh thanks for coming um I know it's been<00:00:17.680> a<00:00:17.760> long<00:00:18.039> day<00:00:18.600> uh<00:00:18.760> today<00:00:19.520> I'll<00:00:19.680> be<00:00:19.960> talking 00:00:20.390 --> 00:00:20.400 align:start position:0% been a long day uh today I'll be talking 00:00:20.400 --> 00:00:26.589 align:start position:0% been a long day uh today I'll be talking about<00:00:21.199> the<00:00:21.400> topic<00:00:21.760> of<00:00:21.960> R<00:00:22.320> l2's<00:00:23.080> extractive<00:00:23.760> to 00:00:26.589 --> 00:00:26.599 align:start position:0% 00:00:26.599 --> 00:00:29.429 align:start position:0% ethereum<00:00:27.599> my<00:00:27.920> talk<00:00:28.480> I'm<00:00:28.599> going<00:00:28.679> to<00:00:28.960> cover 00:00:29.429 --> 00:00:29.439 align:start position:0% ethereum my talk I'm going to cover 00:00:29.439 --> 00:00:33.750 align:start position:0% ethereum my talk I'm going to cover three<00:00:30.039> main<00:00:30.439> areas<00:00:31.439> um<00:00:31.640> the<00:00:31.800> first<00:00:32.160> is<00:00:33.120> um<00:00:33.600> on 00:00:33.750 --> 00:00:33.760 align:start position:0% three main areas um the first is um on 00:00:33.760 --> 00:00:36.389 align:start position:0% three main areas um the first is um on the<00:00:34.000> topic<00:00:34.320> of<00:00:34.600> l2s<00:00:35.239> keeping<00:00:35.600> fees<00:00:36.040> and<00:00:36.200> not 00:00:36.389 --> 00:00:36.399 align:start position:0% the topic of l2s keeping fees and not 00:00:36.399 --> 00:00:38.430 align:start position:0% the topic of l2s keeping fees and not paying<00:00:36.680> enough<00:00:36.920> for<00:00:37.079> blobs<00:00:37.640> this<00:00:37.760> is<00:00:38.120> quite<00:00:38.280> a 00:00:38.430 --> 00:00:38.440 align:start position:0% paying enough for blobs this is quite a 00:00:38.440 --> 00:00:40.869 align:start position:0% paying enough for blobs this is quite a nuanced<00:00:39.040> topic<00:00:39.520> and<00:00:39.960> I'm<00:00:40.039> going<00:00:40.160> to<00:00:40.360> dive<00:00:40.600> into 00:00:40.869 --> 00:00:40.879 align:start position:0% nuanced topic and I'm going to dive into 00:00:40.879 --> 00:00:43.950 align:start position:0% nuanced topic and I'm going to dive into it<00:00:41.440> the<00:00:41.600> second<00:00:42.600> um<00:00:43.079> what<00:00:43.200> I<00:00:43.320> think<00:00:43.480> is<00:00:43.600> a<00:00:43.719> more 00:00:43.950 --> 00:00:43.960 align:start position:0% it the second um what I think is a more 00:00:43.960 --> 00:00:46.270 align:start position:0% it the second um what I think is a more important<00:00:44.440> question<00:00:44.920> is<00:00:45.360> are<00:00:45.640> L2<00:00:46.120> is 00:00:46.270 --> 00:00:46.280 align:start position:0% important question is are L2 is 00:00:46.280 --> 00:00:49.229 align:start position:0% important question is are L2 is generating<00:00:47.120> eth<00:00:47.440> denominated<00:00:48.199> activity<00:00:49.120> in 00:00:49.229 --> 00:00:49.239 align:start position:0% generating eth denominated activity in 00:00:49.239 --> 00:00:51.389 align:start position:0% generating eth denominated activity in terms<00:00:49.480> of<00:00:49.719> eth<00:00:50.000> being<00:00:50.199> used<00:00:50.440> as<00:00:50.520> a<00:00:50.680> gas<00:00:50.960> token 00:00:51.389 --> 00:00:51.399 align:start position:0% terms of eth being used as a gas token 00:00:51.399 --> 00:00:54.029 align:start position:0% terms of eth being used as a gas token eth<00:00:51.719> being<00:00:51.920> used<00:00:52.239> as<00:00:52.320> an<00:00:52.600> asset<00:00:53.399> and<00:00:53.640> has<00:00:53.800> it 00:00:54.029 --> 00:00:54.039 align:start position:0% eth being used as an asset and has it 00:00:54.039 --> 00:00:56.869 align:start position:0% eth being used as an asset and has it generated<00:00:54.520> new<00:00:54.760> holders<00:00:55.120> of<00:00:55.320> eth<00:00:56.000> and<00:00:56.199> I<00:00:56.280> think 00:00:56.869 --> 00:00:56.879 align:start position:0% generated new holders of eth and I think 00:00:56.879 --> 00:00:58.310 align:start position:0% generated new holders of eth and I think the<00:00:57.199> the<00:00:57.320> third<00:00:57.680> topic<00:00:57.920> that<00:00:58.039> I'm<00:00:58.120> going<00:00:58.199> to 00:00:58.310 --> 00:00:58.320 align:start position:0% the the third topic that I'm going to 00:00:58.320 --> 00:01:00.470 align:start position:0% the the third topic that I'm going to touch<00:00:58.519> on<00:00:58.920> is<00:00:59.480> what<00:00:59.640> is<00:00:59.760> that 00:01:00.470 --> 00:01:00.480 align:start position:0% touch on is what is that 00:01:00.480 --> 00:01:04.310 align:start position:0% touch on is what is that dynamic<00:01:01.199> between<00:01:01.719> l2s<00:01:02.480> and 00:01:04.310 --> 00:01:04.320 align:start position:0% dynamic between l2s and 00:01:04.320 --> 00:01:07.630 align:start position:0% dynamic between l2s and ethereum<00:01:05.320> so<00:01:06.040> if<00:01:06.159> you<00:01:06.479> go<00:01:06.640> on<00:01:06.840> crypto<00:01:07.240> Twitter 00:01:07.630 --> 00:01:07.640 align:start position:0% ethereum so if you go on crypto Twitter 00:01:07.640 --> 00:01:11.510 align:start position:0% ethereum so if you go on crypto Twitter if<00:01:07.759> you<00:01:08.360> read<00:01:09.040> forums<00:01:09.640> blog<00:01:09.920> posts<00:01:10.240> Etc<00:01:11.200> one<00:01:11.320> of 00:01:11.510 --> 00:01:11.520 align:start position:0% if you read forums blog posts Etc one of 00:01:11.520 --> 00:01:14.429 align:start position:0% if you read forums blog posts Etc one of the<00:01:11.680> most<00:01:12.119> popular<00:01:12.759> narratives<00:01:13.400> is<00:01:13.640> l2s<00:01:14.200> are 00:01:14.429 --> 00:01:14.439 align:start position:0% the most popular narratives is l2s are 00:01:14.439 --> 00:01:16.109 align:start position:0% the most popular narratives is l2s are keeping<00:01:14.799> the<00:01:14.920> fees<00:01:15.280> that<00:01:15.400> they're<00:01:15.560> generating 00:01:16.109 --> 00:01:16.119 align:start position:0% keeping the fees that they're generating 00:01:16.119 --> 00:01:19.310 align:start position:0% keeping the fees that they're generating and<00:01:16.200> they're<00:01:16.400> not<00:01:16.600> paying<00:01:16.920> enough<00:01:17.119> for 00:01:19.310 --> 00:01:19.320 align:start position:0% and they're not paying enough for 00:01:19.320 --> 00:01:21.749 align:start position:0% and they're not paying enough for blobs<00:01:20.320> and<00:01:20.600> you<00:01:20.680> can<00:01:20.880> kind<00:01:21.000> of<00:01:21.119> see<00:01:21.400> this<00:01:21.600> when 00:01:21.749 --> 00:01:21.759 align:start position:0% blobs and you can kind of see this when 00:01:21.759 --> 00:01:24.550 align:start position:0% blobs and you can kind of see this when you<00:01:22.079> look<00:01:22.280> at<00:01:22.560> the<00:01:22.759> margins<00:01:23.360> for<00:01:23.640> layer<00:01:24.040> tws 00:01:24.550 --> 00:01:24.560 align:start position:0% you look at the margins for layer tws 00:01:24.560 --> 00:01:29.230 align:start position:0% you look at the margins for layer tws post<00:01:25.040> EIP<00:01:25.520> 4844<00:01:26.520> going<00:01:27.000> from<00:01:27.680> 20<00:01:28.000> to<00:01:28.240> 30% 00:01:29.230 --> 00:01:29.240 align:start position:0% post EIP 4844 going from 20 to 30% 00:01:29.240 --> 00:01:37.069 align:start position:0% post EIP 4844 going from 20 to 30% margin<00:01:29.720> on<00:01:29.960> on<00:01:30.600> on<00:01:30.880> fees<00:01:31.520> to<00:01:32.360> upwards<00:01:32.840> of 00:01:37.069 --> 00:01:37.079 align:start position:0% 00:01:37.079 --> 00:01:39.789 align:start position:0% 99.99%<00:01:38.079> but<00:01:38.680> I<00:01:38.759> think<00:01:38.880> the<00:01:39.040> Nuance<00:01:39.439> behind 00:01:39.789 --> 00:01:39.799 align:start position:0% 99.99% but I think the Nuance behind 00:01:39.799 --> 00:01:42.550 align:start position:0% 99.99% but I think the Nuance behind this<00:01:40.040> is<00:01:40.280> that<00:01:40.479> blobs<00:01:40.920> are<00:01:41.200> still<00:01:41.759> in<00:01:42.040> the<00:01:42.200> cold 00:01:42.550 --> 00:01:42.560 align:start position:0% this is that blobs are still in the cold 00:01:42.560 --> 00:01:46.310 align:start position:0% this is that blobs are still in the cold start<00:01:43.040> period<00:01:43.799> and<00:01:44.040> what<00:01:44.159> that<00:01:44.320> means<00:01:44.920> is<00:01:45.680> that 00:01:46.310 --> 00:01:46.320 align:start position:0% start period and what that means is that 00:01:46.320 --> 00:01:49.990 align:start position:0% start period and what that means is that it<00:01:46.520> is<00:01:47.320> a<00:01:47.560> byproduct<00:01:48.360> of<00:01:48.479> the<00:01:48.680> mechanism<00:01:49.320> of 00:01:49.990 --> 00:01:50.000 align:start position:0% it is a byproduct of the mechanism of 00:01:50.000 --> 00:01:53.910 align:start position:0% it is a byproduct of the mechanism of 4844<00:01:51.000> and<00:01:51.439> David<00:01:52.040> crapus<00:01:53.040> predicted<00:01:53.479> the<00:01:53.600> cold 00:01:53.910 --> 00:01:53.920 align:start position:0% 4844 and David crapus predicted the cold 00:01:53.920 --> 00:01:56.469 align:start position:0% 4844 and David crapus predicted the cold start<00:01:54.320> problem<00:01:54.920> actually<00:01:55.360> last<00:01:55.600> year<00:01:56.240> and<00:01:56.360> he 00:01:56.469 --> 00:01:56.479 align:start position:0% start problem actually last year and he 00:01:56.479 --> 00:02:00.029 align:start position:0% start problem actually last year and he ran<00:01:56.680> a<00:01:56.880> simulation<00:01:57.759> from<00:01:58.000> March<00:01:58.360> 2023<00:01:59.320> using<00:01:59.600> a 00:02:00.029 --> 00:02:00.039 align:start position:0% ran a simulation from March 2023 using a 00:02:00.039 --> 00:02:02.910 align:start position:0% ran a simulation from March 2023 using a assumptions<00:02:01.039> from<00:02:01.520> the<00:02:01.680> transaction<00:02:02.439> volume 00:02:02.910 --> 00:02:02.920 align:start position:0% assumptions from the transaction volume 00:02:02.920 --> 00:02:05.950 align:start position:0% assumptions from the transaction volume on<00:02:03.200> arbitrum<00:02:03.880> and<00:02:04.039> optimism<00:02:04.560> at<00:02:04.719> that<00:02:04.960> time 00:02:05.950 --> 00:02:05.960 align:start position:0% on arbitrum and optimism at that time 00:02:05.960 --> 00:02:09.430 align:start position:0% on arbitrum and optimism at that time and<00:02:06.360> it<00:02:06.479> would<00:02:06.680> take<00:02:06.960> roughly<00:02:07.560> 250<00:02:08.560> kilobytes 00:02:09.430 --> 00:02:09.440 align:start position:0% and it would take roughly 250 kilobytes 00:02:09.440 --> 00:02:12.589 align:start position:0% and it would take roughly 250 kilobytes per<00:02:09.959> block<00:02:10.759> to<00:02:10.959> get<00:02:11.200> into<00:02:11.720> price<00:02:12.200> Discovery 00:02:12.589 --> 00:02:12.599 align:start position:0% per block to get into price Discovery 00:02:12.599 --> 00:02:16.350 align:start position:0% per block to get into price Discovery for<00:02:13.080> for<00:02:13.280> blob<00:02:13.800> pricing<00:02:14.800> that's<00:02:15.160> roughly 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position:0% that we're basically there on average 00:02:24.360 --> 00:02:27.110 align:start position:0% that we're basically there on average per<00:02:24.560> day<00:02:25.120> but<00:02:25.280> not<00:02:25.519> yet<00:02:25.920> on<00:02:26.040> a<00:02:26.239> block<00:02:26.560> byblock 00:02:27.110 --> 00:02:27.120 align:start position:0% per day but not yet on a block byblock 00:02:27.120 --> 00:02:30.710 align:start position:0% per day but not yet on a block byblock basis 00:02:30.710 --> 00:02:30.720 align:start position:0% 00:02:30.720 --> 00:02:33.229 align:start position:0% and<00:02:31.160> actually<00:02:32.040> there<00:02:32.239> have<00:02:32.440> been<00:02:32.760> some 00:02:33.229 --> 00:02:33.239 align:start position:0% and actually there have been some 00:02:33.239 --> 00:02:35.509 align:start position:0% and actually there have been some notable<00:02:33.720> periods<00:02:34.239> when<00:02:34.440> blob<00:02:34.879> pricing<00:02:35.319> has 00:02:35.509 --> 00:02:35.519 align:start position:0% notable periods when blob pricing has 00:02:35.519 --> 00:02:39.229 align:start position:0% notable periods when blob pricing has gone<00:02:35.800> into<00:02:36.319> price<00:02:37.080> Discovery<00:02:38.080> um<00:02:38.760> this<00:02:38.879> is<00:02:39.040> an 00:02:39.229 --> 00:02:39.239 align:start position:0% gone into price Discovery um this is an 00:02:39.239 --> 00:02:41.589 align:start position:0% gone into price Discovery um this is an example<00:02:39.720> from<00:02:40.239> earlier<00:02:40.720> this<00:02:40.920> year<00:02:41.440> which 00:02:41.589 --> 00:02:41.599 align:start position:0% example from earlier this year which 00:02:41.599 --> 00:02:44.190 align:start position:0% example from earlier this year which shows<00:02:42.400> the<00:02:42.599> blob<00:02:42.959> fee<00:02:43.200> breakdown<00:02:43.879> between 00:02:44.190 --> 00:02:44.200 align:start position:0% shows the blob fee breakdown between 00:02:44.200 --> 00:02:46.910 align:start position:0% shows the blob fee breakdown between blob<00:02:44.560> space<00:02:44.879> fees<00:02:45.560> and<00:02:46.080> execution<00:02:46.599> fees 00:02:46.910 --> 00:02:46.920 align:start position:0% blob space fees and execution fees 00:02:46.920 --> 00:02:49.589 align:start position:0% blob space fees and execution fees during<00:02:47.200> the<00:02:47.319> layer<00:02:47.640> zero<00:02:48.400> airdrop<00:02:49.400> and<00:02:49.519> you 00:02:49.589 --> 00:02:49.599 align:start position:0% during the layer zero airdrop and you 00:02:49.599 --> 00:02:51.830 align:start position:0% during the layer zero airdrop and you can<00:02:49.720> see<00:02:50.040> that<00:02:50.239> for<00:02:50.440> a<00:02:50.640> period<00:02:51.000> of<00:02:51.200> roughly<00:02:51.640> 1 00:02:51.830 --> 00:02:51.840 align:start position:0% can see that for a period of roughly 1 00:02:51.840 --> 00:02:54.030 align:start position:0% can see that for a period of roughly 1 to<00:02:52.000> two<00:02:52.239> hours<00:02:53.000> blob<00:02:53.319> fees<00:02:53.599> actually 00:02:54.030 --> 00:02:54.040 align:start position:0% to two hours blob fees actually 00:02:54.040 --> 00:02:58.350 align:start position:0% to two hours blob fees actually dominated<00:02:54.760> compared<00:02:55.159> to<00:02:55.800> the<00:02:55.959> execution 00:02:58.350 --> 00:02:58.360 align:start position:0% dominated compared to the execution 00:02:58.360 --> 00:03:00.910 align:start position:0% dominated compared to the execution fees<00:02:59.360> and<00:02:59.599> actually<00:02:59.840> actually<00:03:00.159> most<00:03:00.640> more 00:03:00.910 --> 00:03:00.920 align:start position:0% fees and actually actually most more 00:03:00.920 --> 00:03:02.869 align:start position:0% fees and actually actually most more recently<00:03:01.480> blobs<00:03:01.879> have<00:03:02.000> been<00:03:02.239> getting<00:03:02.599> really 00:03:02.869 --> 00:03:02.879 align:start position:0% recently blobs have been getting really 00:03:02.879 --> 00:03:05.190 align:start position:0% recently blobs have been getting really really<00:03:03.120> close<00:03:03.480> to<00:03:03.640> the<00:03:03.799> Target<00:03:04.200> amount<00:03:04.400> of 00:03:05.190 --> 00:03:05.200 align:start position:0% really close to the Target amount of 00:03:05.200 --> 00:03:08.509 align:start position:0% really close to the Target amount of blobs<00:03:06.200> past<00:03:06.680> which<00:03:07.360> The<00:03:07.519> Blob<00:03:07.920> pricing<00:03:08.319> would 00:03:08.509 --> 00:03:08.519 align:start position:0% blobs past which The Blob pricing would 00:03:08.519 --> 00:03:10.589 align:start position:0% blobs past which The Blob pricing would go<00:03:08.720> into<00:03:09.000> price<00:03:09.440> Discovery<00:03:09.879> and<00:03:10.280> you<00:03:10.400> would 00:03:10.589 --> 00:03:10.599 align:start position:0% go into price Discovery and you would 00:03:10.599 --> 00:03:13.149 align:start position:0% go into price Discovery and you would see<00:03:11.040> this<00:03:11.519> drastic<00:03:12.040> increase<00:03:12.440> in<00:03:12.560> the<00:03:12.720> cost<00:03:12.920> of 00:03:13.149 --> 00:03:13.159 align:start position:0% see this drastic increase in the cost of 00:03:13.159 --> 00:03:18.190 align:start position:0% see this drastic increase in the cost of blobs<00:03:14.159> uh<00:03:14.319> faced<00:03:14.680> by<00:03:15.040> the 00:03:18.190 --> 00:03:18.200 align:start position:0% 00:03:18.200 --> 00:03:21.030 align:start position:0% l2s<00:03:19.200> but<00:03:19.519> one<00:03:19.640> of<00:03:19.799> the<00:03:20.000> interesting<00:03:20.519> Dynamics 00:03:21.030 --> 00:03:21.040 align:start position:0% l2s but one of the interesting Dynamics 00:03:21.040 --> 00:03:24.110 align:start position:0% l2s but one of the interesting Dynamics behind<00:03:21.360> this<00:03:21.680> is<00:03:21.879> that<00:03:22.080> layer<00:03:22.480> twos<00:03:23.480> are 00:03:24.110 --> 00:03:24.120 align:start position:0% behind this is that layer twos are 00:03:24.120 --> 00:03:28.350 align:start position:0% behind this is that layer twos are fundamentally<00:03:25.560> businesses<00:03:26.560> um<00:03:27.319> and<00:03:27.720> when<00:03:28.120> you 00:03:28.350 --> 00:03:28.360 align:start position:0% fundamentally businesses um and when you 00:03:28.360 --> 00:03:31.270 align:start position:0% fundamentally businesses um and when you see<00:03:28.760> a<00:03:28.920> fee<00:03:29.480> SP<00:03:29.879> like<00:03:30.120> for<00:03:30.319> blob 00:03:31.270 --> 00:03:31.280 align:start position:0% see a fee SP like for blob 00:03:31.280 --> 00:03:34.470 align:start position:0% see a fee SP like for blob pricing<00:03:32.280> um<00:03:32.480> we<00:03:32.640> tend<00:03:32.840> to<00:03:33.040> see<00:03:33.519> that<00:03:33.760> layer<00:03:34.040> 2os 00:03:34.470 --> 00:03:34.480 align:start position:0% pricing um we tend to see that layer 2os 00:03:34.480 --> 00:03:38.229 align:start position:0% pricing um we tend to see that layer 2os actually<00:03:34.720> start<00:03:35.120> to<00:03:36.120> uh<00:03:36.599> slow<00:03:37.159> down<00:03:37.560> the<00:03:37.799> pace 00:03:38.229 --> 00:03:38.239 align:start position:0% actually start to uh slow down the pace 00:03:38.239 --> 00:03:40.750 align:start position:0% actually start to uh slow down the pace that<00:03:38.519> they<00:03:38.760> post<00:03:39.120> blobs<00:03:39.599> in<00:03:39.720> order<00:03:39.959> to<00:03:40.200> dodge 00:03:40.750 --> 00:03:40.760 align:start position:0% that they post blobs in order to dodge 00:03:40.760 --> 00:03:45.830 align:start position:0% that they post blobs in order to dodge these<00:03:41.239> high<00:03:42.239> high<00:03:42.480> Spike 00:03:45.830 --> 00:03:45.840 align:start position:0% 00:03:45.840 --> 00:03:48.869 align:start position:0% moments<00:03:46.840> another<00:03:47.200> way<00:03:47.319> to<00:03:47.519> see<00:03:47.879> this<00:03:48.280> is 00:03:48.869 --> 00:03:48.879 align:start position:0% moments another way to see this is 00:03:48.879 --> 00:03:50.750 align:start position:0% moments another way to see this is through<00:03:49.120> the<00:03:49.280> distribution<00:03:49.840> of<00:03:50.040> blobs<00:03:50.519> per 00:03:50.750 --> 00:03:50.760 align:start position:0% through the distribution of blobs per 00:03:50.760 --> 00:03:55.069 align:start position:0% through the distribution of blobs per block<00:03:51.599> so<00:03:52.159> the<00:03:52.319> gray<00:03:52.680> color<00:03:53.680> um<00:03:54.079> are<00:03:54.480> blocks 00:03:55.069 --> 00:03:55.079 align:start position:0% block so the gray color um are blocks 00:03:55.079 --> 00:03:58.470 align:start position:0% block so the gray color um are blocks with<00:03:55.280> no<00:03:55.680> blobs<00:03:56.680> um<00:03:56.920> these<00:03:57.040> are<00:03:57.360> kind<00:03:57.519> of<00:03:58.280> these 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where the total amount of data posted 00:04:05.439 --> 00:04:08.309 align:start position:0% where the total amount of data posted might<00:04:05.680> imply<00:04:06.360> that<00:04:06.840> the<00:04:06.959> blob<00:04:07.439> fees<00:04:07.920> should<00:04:08.159> go 00:04:08.309 --> 00:04:08.319 align:start position:0% might imply that the blob fees should go 00:04:08.319 --> 00:04:10.910 align:start position:0% might imply that the blob fees should go into<00:04:08.519> price<00:04:09.000> Discovery<00:04:09.439> but<00:04:09.599> if<00:04:09.720> you<00:04:10.519> uh<00:04:10.720> but 00:04:10.910 --> 00:04:10.920 align:start position:0% into price Discovery but if you uh but 00:04:10.920 --> 00:04:12.910 align:start position:0% into price Discovery but if you uh but that<00:04:11.439> mechanism<00:04:11.959> is<00:04:12.159> actually<00:04:12.319> triggered<00:04:12.799> on 00:04:12.910 --> 00:04:12.920 align:start position:0% that mechanism is actually triggered on 00:04:12.920 --> 00:04:16.069 align:start position:0% that mechanism is actually triggered on a<00:04:13.040> block<00:04:13.319> byblock<00:04:13.799> basis<00:04:14.400> but<00:04:15.079> we're<00:04:15.840> we're 00:04:16.069 --> 00:04:16.079 align:start position:0% a block byblock basis but we're we're 00:04:16.079 --> 00:04:18.710 align:start position:0% a block byblock basis but we're we're going<00:04:16.519> from<00:04:16.799> a<00:04:16.959> world<00:04:17.440> where<00:04:18.239> half<00:04:18.440> of<00:04:18.600> the 00:04:18.710 --> 00:04:18.720 align:start position:0% going from a world where half of the 00:04:18.720 --> 00:04:21.390 align:start position:0% going from a world where half of the blocks<00:04:19.199> had<00:04:19.400> no<00:04:19.639> blobs<00:04:20.079> to<00:04:20.239> a<00:04:20.359> world<00:04:20.759> where 00:04:21.390 --> 00:04:21.400 align:start position:0% blocks had no blobs to a world where 00:04:21.400 --> 00:04:27.510 align:start position:0% blocks had no blobs to a world where only<00:04:22.400> 20<00:04:22.880> to<00:04:23.080> 30%<00:04:23.639> of<00:04:23.840> the<00:04:23.960> blocks<00:04:24.479> have<00:04:24.639> no 00:04:27.510 --> 00:04:27.520 align:start position:0% 00:04:27.520 --> 00:04:30.830 align:start position:0% blobs<00:04:28.520> and<00:04:29.160> and<00:04:29.320> the<00:04:29.440> same<00:04:29.960> is<00:04:30.120> true<00:04:30.520> on<00:04:30.639> a 00:04:30.830 --> 00:04:30.840 align:start position:0% blobs and and the same is true on a 00:04:30.840 --> 00:04:35.230 align:start position:0% blobs and and the same is true on a capacity<00:04:31.479> basis<00:04:32.240> so<00:04:33.000> in<00:04:33.160> the<00:04:33.320> summer<00:04:34.199> of 00:04:35.230 --> 00:04:35.240 align:start position:0% capacity basis so in the summer of 00:04:35.240 --> 00:04:37.550 align:start position:0% capacity basis so in the summer of 2024<00:04:36.240> uh 00:04:37.550 --> 00:04:37.560 align:start position:0% 2024 uh 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position:0% and now we're approaching a period where only<00:04:47.479> 10<00:04:47.680> to<00:04:47.960> 20%<00:04:48.960> is 00:04:51.590 --> 00:04:51.600 align:start position:0% 00:04:51.600 --> 00:04:54.870 align:start position:0% unused<00:04:52.600> and<00:04:52.880> overall<00:04:53.360> blobs<00:04:53.759> inflow<00:04:54.240> per<00:04:54.440> day 00:04:54.870 --> 00:04:54.880 align:start position:0% unused and overall blobs inflow per day 00:04:54.880 --> 00:04:56.870 align:start position:0% unused and overall blobs inflow per day are<00:04:55.240> quite<00:04:55.440> healthy<00:04:55.800> they're<00:04:56.039> actually<00:04:56.560> well 00:04:56.870 --> 00:04:56.880 align:start position:0% are quite healthy they're actually well 00:04:56.880 --> 00:05:00.670 align:start position:0% are quite healthy they're actually well above<00:04:57.240> the<00:04:57.400> 1.8<00:04:58.320> gigabyte<00:04:58.840> Target<00:05:00.000> um<00:05:00.360> through 00:05:00.670 --> 00:05:00.680 align:start position:0% above the 1.8 gigabyte Target um through 00:05:00.680 --> 00:05:03.070 align:start position:0% above the 1.8 gigabyte Target um through which<00:05:01.199> if<00:05:01.320> that<00:05:01.440> were<00:05:01.639> true<00:05:01.919> block<00:05:02.240> by<00:05:02.440> block 00:05:03.070 --> 00:05:03.080 align:start position:0% which if that were true block by block 00:05:03.080 --> 00:05:05.189 align:start position:0% which if that were true block by block blob<00:05:03.440> fee<00:05:03.720> pricing<00:05:04.080> would<00:05:04.280> go<00:05:04.440> into<00:05:04.720> price 00:05:05.189 --> 00:05:05.199 align:start position:0% blob fee pricing would go into price 00:05:05.199 --> 00:05:08.230 align:start position:0% blob fee pricing would go into price Discovery<00:05:06.199> um<00:05:07.000> um<00:05:07.120> so<00:05:07.280> I<00:05:07.360> think<00:05:07.520> we're 00:05:08.230 --> 00:05:08.240 align:start position:0% Discovery um um so I think we're 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not<00:05:20.240> necessarily<00:05:20.960> a 00:05:21.150 --> 00:05:21.160 align:start position:0% and that it's not necessarily a 00:05:21.160 --> 00:05:24.990 align:start position:0% and that it's not necessarily a byproduct<00:05:21.720> of<00:05:21.880> the<00:05:22.280> l2s<00:05:23.280> not<00:05:23.680> wanting<00:05:24.039> to<00:05:24.560> pay 00:05:24.990 --> 00:05:25.000 align:start position:0% byproduct of the l2s not wanting to pay 00:05:25.000 --> 00:05:27.550 align:start position:0% byproduct of the l2s not wanting to pay for<00:05:25.240> blob<00:05:25.600> storage<00:05:26.039> it's<00:05:26.199> more<00:05:26.639> that<00:05:27.240> the<00:05:27.360> way 00:05:27.550 --> 00:05:27.560 align:start position:0% for blob storage it's more that the way 00:05:27.560 --> 00:05:30.150 align:start position:0% for blob storage it's more that the way that<00:05:27.680> the<00:05:27.840> mechanism<00:05:28.479> is<00:05:28.759> designed 00:05:30.150 --> 00:05:30.160 align:start position:0% that the mechanism is designed 00:05:30.160 --> 00:05:33.270 align:start position:0% that the mechanism is designed um<00:05:30.479> is<00:05:30.800> what<00:05:31.680> uh<00:05:32.080> is<00:05:32.479> precipitating<00:05:33.160> what 00:05:33.270 --> 00:05:33.280 align:start position:0% um is what uh is precipitating what 00:05:33.280 --> 00:05:35.950 align:start position:0% um is what uh is precipitating what we're<00:05:33.440> seeing<00:05:34.280> um<00:05:34.520> for<00:05:34.680> the<00:05:34.800> blob<00:05:35.120> fees<00:05:35.440> at<00:05:35.560> the 00:05:35.950 --> 00:05:35.960 align:start position:0% we're seeing um for the blob fees at the 00:05:35.960 --> 00:05:38.390 align:start position:0% we're seeing um for the blob fees at the moment<00:05:36.960> um<00:05:37.080> so<00:05:37.240> the<00:05:37.440> second<00:05:37.800> topic<00:05:38.039> I<00:05:38.120> want<00:05:38.199> to 00:05:38.390 --> 00:05:38.400 align:start position:0% moment um so the second topic I want to 00:05:38.400 --> 00:05:39.830 align:start position:0% moment um so the second topic I want to dive<00:05:38.600> into<00:05:39.000> which<00:05:39.120> I<00:05:39.199> think<00:05:39.360> is<00:05:39.479> the<00:05:39.639> more 00:05:39.830 --> 00:05:39.840 align:start position:0% dive into which I think is the more 00:05:39.840 --> 00:05:42.950 align:start position:0% dive into which I think is the more important<00:05:40.319> topic<00:05:40.960> is<00:05:41.400> are<00:05:41.720> l2s<00:05:42.319> generating 00:05:42.950 --> 00:05:42.960 align:start position:0% important topic is are l2s generating 00:05:42.960 --> 00:05:46.590 align:start position:0% important topic is are l2s generating activity<00:05:43.680> and<00:05:43.880> usage<00:05:44.199> of<00:05:44.400> eth<00:05:44.880> the 00:05:46.590 --> 00:05:46.600 align:start position:0% activity and usage of eth the 00:05:46.600 --> 00:05:50.110 align:start position:0% activity and usage of eth the asset<00:05:47.600> so<00:05:47.880> if<00:05:48.000> you<00:05:48.120> look<00:05:48.319> at<00:05:48.560> L2<00:05:49.000> beat<00:05:49.720> um<00:05:49.919> and 00:05:50.110 --> 00:05:50.120 align:start position:0% asset so if you look at L2 beat um and 00:05:50.120 --> 00:05:52.270 align:start position:0% asset so if you look at L2 beat um and various<00:05:50.479> block<00:05:50.800> explorers<00:05:51.800> I'm<00:05:51.919> sure 00:05:52.270 --> 00:05:52.280 align:start position:0% various block explorers I'm sure 00:05:52.280 --> 00:05:54.430 align:start position:0% various block explorers I'm sure everyone<00:05:52.720> has<00:05:52.880> seen<00:05:53.520> a<00:05:53.720> chart<00:05:54.039> that<00:05:54.160> looks 00:05:54.430 --> 00:05:54.440 align:start position:0% everyone has seen a chart that looks 00:05:54.440 --> 00:05:56.629 align:start position:0% everyone has seen a chart that looks something<00:05:54.800> like<00:05:55.039> this<00:05:55.800> where<00:05:56.039> the<00:05:56.160> L2 00:05:56.629 --> 00:05:56.639 align:start position:0% something like this where the L2 00:05:56.639 --> 00:05:59.309 align:start position:0% something like this where the L2 activity<00:05:57.319> has<00:05:57.520> grown<00:05:58.120> tremendously<00:05:58.919> over<00:05:59.160> the 00:05:59.309 --> 00:05:59.319 align:start position:0% activity has grown tremendously over the 00:05:59.319 --> 00:06:03.309 align:start position:0% activity has grown tremendously over the past<00:05:59.759> year<00:06:00.400> going<00:06:00.720> from<00:06:01.000> around<00:06:01.360> 50<00:06:01.840> TPS<00:06:02.840> um<00:06:03.080> up 00:06:03.309 --> 00:06:03.319 align:start position:0% past year going from around 50 TPS um up 00:06:03.319 --> 00:06:10.270 align:start position:0% past year going from around 50 TPS um up to<00:06:04.400> 170<00:06:05.400> 180<00:06:06.759> TPS<00:06:07.759> across<00:06:08.039> the 00:06:10.270 --> 00:06:10.280 align:start position:0% 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despite higher activity that's<00:06:21.759> partially<00:06:22.240> contributing<00:06:22.759> to<00:06:23.000> things 00:06:23.270 --> 00:06:23.280 align:start position:0% that's partially contributing to things 00:06:23.280 --> 00:06:27.189 align:start position:0% that's partially contributing to things like<00:06:23.599> lower<00:06:23.880> burn<00:06:24.880> a<00:06:25.000> lot<00:06:25.240> of<00:06:26.240> uh<00:06:26.479> concern<00:06:27.000> from 00:06:27.189 --> 00:06:27.199 align:start position:0% like lower burn a lot of uh concern from 00:06:27.199 --> 00:06:30.150 align:start position:0% like lower burn a lot of uh concern from the<00:06:27.479> community<00:06:28.479> um<00:06:28.680> but<00:06:28.880> again<00:06:29.639> this<00:06:29.759> is<00:06:29.960> more 00:06:30.150 --> 00:06:30.160 align:start position:0% the community um but again this is more 00:06:30.160 --> 00:06:32.990 align:start position:0% the community um but again this is more of<00:06:30.240> a<00:06:30.479> byproduct<00:06:31.120> of<00:06:31.280> the<00:06:31.440> mechanism<00:06:31.960> of<00:06:32.080> 4844 00:06:32.990 --> 00:06:33.000 align:start position:0% of a byproduct of the mechanism of 4844 00:06:33.000 --> 00:06:37.070 align:start position:0% of a byproduct of the mechanism of 4844 and<00:06:33.160> less<00:06:33.440> about<00:06:33.880> any<00:06:34.280> nefarious 00:06:37.070 --> 00:06:37.080 align:start position:0% 00:06:37.080 --> 00:06:39.790 align:start position:0% intention<00:06:38.080> but<00:06:38.919> I<00:06:39.000> thought<00:06:39.199> this<00:06:39.319> chart<00:06:39.599> was 00:06:39.790 --> 00:06:39.800 align:start position:0% intention but I thought this chart was 00:06:39.800 --> 00:06:41.990 align:start position:0% intention but I thought this chart was actually<00:06:40.000> pretty<00:06:40.240> interesting<00:06:40.840> so<00:06:41.599> if<00:06:41.720> you 00:06:41.990 --> 00:06:42.000 align:start position:0% actually pretty interesting so if you 00:06:42.000 --> 00:06:45.909 align:start position:0% actually pretty interesting so if you zoom<00:06:42.440> out<00:06:43.160> and<00:06:43.280> you<00:06:43.479> look<00:06:43.680> at<00:06:44.520> the<00:06:44.919> collective 00:06:45.909 --> 00:06:45.919 align:start position:0% zoom out and you look at the collective 00:06:45.919 --> 00:06:48.350 align:start position:0% zoom out and you look at the collective fees<00:06:46.479> in<00:06:46.599> terms<00:06:46.840> of<00:06:47.000> eth<00:06:47.319> being<00:06:47.520> used<00:06:47.759> as<00:06:47.880> a<00:06:48.039> gas 00:06:48.350 --> 00:06:48.360 align:start position:0% fees in terms of eth being used as a gas 00:06:48.360 --> 00:06:51.430 align:start position:0% fees in terms of eth being used as a gas token<00:06:49.080> and<00:06:49.199> you<00:06:49.360> compare<00:06:49.880> that<00:06:50.160> to<00:06:50.919> uh<00:06:51.039> the<00:06:51.199> gas 00:06:51.430 --> 00:06:51.440 align:start position:0% token and you compare that to uh the gas 00:06:51.440 --> 00:06:54.469 align:start position:0% token and you compare that to uh the gas fees<00:06:52.280> used<00:06:52.599> on<00:06:52.800> mainnet<00:06:53.319> you<00:06:53.440> can<00:06:53.720> barely<00:06:54.080> see 00:06:54.469 --> 00:06:54.479 align:start position:0% fees used on mainnet you can barely see 00:06:54.479 --> 00:06:58.550 align:start position:0% fees used on mainnet you can barely see the<00:06:54.560> L2<00:06:55.160> line<00:06:56.160> um<00:06:57.160> which<00:06:57.360> is<00:06:57.599> great<00:06:57.800> for<00:06:58.000> users 00:06:58.550 --> 00:06:58.560 align:start position:0% the L2 line um which is great for users 00:06:58.560 --> 00:07:00.670 align:start position:0% the L2 line um which is great for users in<00:06:58.840> that<00:06:59.199> they're<00:06:59.599> transactions<00:07:00.000> are<00:07:00.280> quite 00:07:00.670 --> 00:07:00.680 align:start position:0% in that they're transactions are quite 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an<00:07:13.919> asset<00:07:14.440> has<00:07:14.599> grown<00:07:14.919> tremendously 00:07:15.710 --> 00:07:15.720 align:start position:0% eth as an asset has grown tremendously 00:07:15.720 --> 00:07:18.550 align:start position:0% eth as an asset has grown tremendously so<00:07:16.160> what<00:07:16.280> we<00:07:16.400> see<00:07:16.800> here<00:07:17.440> is<00:07:17.560> a<00:07:17.759> chart<00:07:18.199> of<00:07:18.400> the 00:07:18.550 --> 00:07:18.560 align:start position:0% so what we see here is a chart of the 00:07:18.560 --> 00:07:21.510 align:start position:0% so what we see here is a chart of the total<00:07:18.879> value<00:07:19.199> locked<00:07:19.759> stacked<00:07:20.160> by<00:07:20.440> type<00:07:21.360> uh 00:07:21.510 --> 00:07:21.520 align:start position:0% total value locked stacked by type uh 00:07:21.520 --> 00:07:25.990 align:start position:0% total value locked stacked by type uh the<00:07:21.680> purple<00:07:22.160> on<00:07:22.479> top<00:07:22.800> is<00:07:22.919> a<00:07:23.199> canonical<00:07:24.199> bridg<00:07:25.000> e 00:07:25.990 --> 00:07:26.000 align:start position:0% the purple on top is a canonical bridg e 00:07:26.000 --> 00:07:28.749 align:start position:0% the purple on top is a canonical bridg e um<00:07:26.400> and<00:07:26.800> that's<00:07:27.039> just<00:07:27.280> gone<00:07:28.199> uh<00:07:28.360> pretty<00:07:28.560> much 00:07:28.749 --> 00:07:28.759 align:start position:0% um and that's just gone uh pretty much 00:07:28.759 --> 00:07:32.629 align:start position:0% um and that's just gone uh pretty much up<00:07:28.960> only<00:07:29.280> since<00:07:29.520> since<00:07:29.639> l2's 00:07:32.629 --> 00:07:32.639 align:start position:0% 00:07:32.639 --> 00:07:35.950 align:start position:0% launched<00:07:33.639> so<00:07:34.160> in<00:07:34.400> summary<00:07:35.280> to<00:07:35.479> cover<00:07:35.800> the 00:07:35.950 --> 00:07:35.960 align:start position:0% launched so in summary to cover the 00:07:35.960 --> 00:07:38.029 align:start position:0% launched so in summary to cover the first<00:07:36.199> half<00:07:36.360> of<00:07:36.479> the<00:07:36.680> talk<00:07:37.360> in<00:07:37.520> terms<00:07:37.759> of<00:07:37.919> the 00:07:38.029 --> 00:07:38.039 align:start position:0% first half of the talk in terms of the 00:07:38.039 --> 00:07:40.830 align:start position:0% first half of the talk in terms of the current<00:07:38.400> state<00:07:39.199> there<00:07:39.360> is<00:07:39.599> not<00:07:39.919> enough<00:07:40.319> L2 00:07:40.830 --> 00:07:40.840 align:start position:0% current state there is not enough L2 00:07:40.840 --> 00:07:43.309 align:start position:0% current state there is not enough L2 blob<00:07:41.199> demand<00:07:41.520> to<00:07:41.720> consistently<00:07:42.479> get<00:07:42.879> blob 00:07:43.309 --> 00:07:43.319 align:start position:0% blob demand to consistently get blob 00:07:43.319 --> 00:07:46.710 align:start position:0% blob demand to consistently get blob blob<00:07:44.000> space<00:07:44.360> into<00:07:44.720> price<00:07:45.520> discovery<00:07:46.159> that 00:07:46.710 --> 00:07:46.720 align:start position:0% blob space into price discovery that 00:07:46.720 --> 00:07:51.029 align:start position:0% blob space into price discovery that requires<00:07:47.720> consistently<00:07:48.440> block<00:07:48.800> by<00:07:49.400> block<00:07:50.400> um 00:07:51.029 --> 00:07:51.039 align:start position:0% requires consistently block by block um 00:07:51.039 --> 00:07:54.749 align:start position:0% requires consistently block by block um l2's<00:07:51.720> consistently<00:07:52.319> posting<00:07:52.919> blob<00:07:53.919> blobs<00:07:54.639> in 00:07:54.749 --> 00:07:54.759 align:start position:0% l2's consistently posting blob blobs in 00:07:54.759 --> 00:07:57.149 align:start position:0% l2's consistently posting blob blobs in order<00:07:55.159> to<00:07:55.440> trigger<00:07:55.879> the<00:07:56.039> price<00:07:56.479> Discovery 00:07:57.149 --> 00:07:57.159 align:start position:0% order to trigger the price Discovery 00:07:57.159 --> 00:07:59.629 align:start position:0% order to trigger the price Discovery mechanism<00:07:57.720> behind<00:07:58.159> 4844<00:07:59.159> but<00:07:59.319> think<00:07:59.520> think 00:07:59.629 --> 00:07:59.639 align:start position:0% mechanism behind 4844 but think think 00:07:59.639 --> 00:08:02.710 align:start position:0% mechanism behind 4844 but think think we're<00:07:59.759> almost<00:08:00.080> there<00:08:00.759> blob<00:08:01.199> pricing<00:08:01.879> today<00:08:02.520> is 00:08:02.710 --> 00:08:02.720 align:start position:0% we're almost there blob pricing today is 00:08:02.720 --> 00:08:04.749 align:start position:0% we're almost there blob pricing today is currently<00:08:03.039> in<00:08:03.159> a<00:08:03.280> bootstrapping<00:08:03.960> period<00:08:04.599> it 00:08:04.749 --> 00:08:04.759 align:start position:0% currently in a bootstrapping period it 00:08:04.759 --> 00:08:07.309 align:start position:0% currently in a bootstrapping period it has<00:08:04.879> shown<00:08:05.560> periods<00:08:05.960> of<00:08:06.159> price<00:08:06.639> Discovery 00:08:07.309 --> 00:08:07.319 align:start position:0% has shown periods of price Discovery 00:08:07.319 --> 00:08:08.990 align:start position:0% has shown periods of price Discovery this<00:08:07.479> is<00:08:07.680> known<00:08:08.120> it's<00:08:08.280> been<00:08:08.440> posted<00:08:08.759> on<00:08:08.879> the 00:08:08.990 --> 00:08:09.000 align:start position:0% this is known it's been posted on the 00:08:09.000 --> 00:08:11.710 align:start position:0% this is known it's been posted on the eth<00:08:09.319> research<00:08:09.639> forums<00:08:10.000> in<00:08:10.520> 2023<00:08:11.520> there's 00:08:11.710 --> 00:08:11.720 align:start position:0% eth research forums in 2023 there's 00:08:11.720 --> 00:08:13.309 align:start position:0% eth research forums in 2023 there's nothing<00:08:12.240> inherently<00:08:12.840> wrong<00:08:13.039> with<00:08:13.159> the 00:08:13.309 --> 00:08:13.319 align:start position:0% nothing inherently wrong with the 00:08:13.319 --> 00:08:15.749 align:start position:0% nothing inherently wrong with the network<00:08:13.759> or<00:08:14.360> or<00:08:14.560> the<00:08:14.720> way<00:08:14.960> that<00:08:15.120> the<00:08:15.280> pricing 00:08:15.749 --> 00:08:15.759 align:start position:0% network or or the way that the pricing 00:08:15.759 --> 00:08:17.749 align:start position:0% network or or the way that the pricing is<00:08:15.919> working<00:08:16.479> and<00:08:16.599> it's<00:08:16.800> actually<00:08:17.159> approaching 00:08:17.749 --> 00:08:17.759 align:start position:0% is working and it's actually approaching 00:08:17.759 --> 00:08:20.309 align:start position:0% is working and it's actually approaching data<00:08:18.080> inflow<00:08:18.720> levels<00:08:19.240> that<00:08:19.400> would<00:08:20.039> actually 00:08:20.309 --> 00:08:20.319 align:start position:0% data inflow levels that would actually 00:08:20.319 --> 00:08:22.749 align:start position:0% data inflow levels that would actually start<00:08:20.599> to<00:08:20.759> trigger<00:08:21.159> and<00:08:21.319> begin<00:08:21.759> price 00:08:22.749 --> 00:08:22.759 align:start position:0% start to trigger and begin price 00:08:22.759 --> 00:08:25.510 align:start position:0% start to trigger and begin price Discovery<00:08:23.759> um<00:08:24.199> and<00:08:24.520> looking<00:08:24.800> at<00:08:25.039> activity<00:08:25.400> on 00:08:25.510 --> 00:08:25.520 align:start position:0% Discovery um and looking at activity on 00:08:25.520 --> 00:08:29.510 align:start position:0% Discovery um and looking at activity on the<00:08:25.639> l2s<00:08:26.319> we<00:08:26.440> do<00:08:26.680> see<00:08:27.479> a<00:08:27.720> lot<00:08:28.039> of<00:08:28.520> new<00:08:28.800> usage<00:08:29.199> of 00:08:29.510 --> 00:08:29.520 align:start position:0% the l2s we do see a lot of new usage of 00:08:29.520 --> 00:08:32.029 align:start position:0% the l2s we do see a lot of new usage of e<00:08:29.759> as<00:08:29.840> an<00:08:30.039> asset<00:08:30.319> in<00:08:30.440> terms<00:08:30.639> of<00:08:30.800> being<00:08:31.000> used<00:08:31.319> in 00:08:32.029 --> 00:08:32.039 align:start position:0% e as an asset in terms of being used in 00:08:32.039 --> 00:08:35.230 align:start position:0% e as an asset in terms of being used in staking<00:08:32.519> protocols<00:08:33.039> in<00:08:33.200> Defi<00:08:33.640> and<00:08:33.800> Etc<00:08:34.800> but 00:08:35.230 --> 00:08:35.240 align:start position:0% staking protocols in Defi and Etc but 00:08:35.240 --> 00:08:38.070 align:start position:0% staking protocols in Defi and Etc but very<00:08:35.560> minor<00:08:35.959> usage<00:08:36.279> of<00:08:36.479> eth<00:08:36.760> as<00:08:36.880> a<00:08:37.039> gas<00:08:37.279> token 00:08:38.070 --> 00:08:38.080 align:start position:0% very minor usage of eth as a gas token 00:08:38.080 --> 00:08:41.750 align:start position:0% very minor usage of eth as a gas token relative<00:08:38.680> to<00:08:38.919> main 00:08:41.750 --> 00:08:41.760 align:start position:0% 00:08:41.760 --> 00:08:44.269 align:start position:0% net<00:08:42.760> so<00:08:43.200> the<00:08:43.320> second<00:08:43.599> half<00:08:43.719> of<00:08:43.800> my<00:08:43.959> talk<00:08:44.159> I'm 00:08:44.269 --> 00:08:44.279 align:start position:0% net so the second half of my talk I'm 00:08:44.279 --> 00:08:45.990 align:start position:0% net so the second half of my talk I'm going<00:08:44.360> to<00:08:44.519> talk<00:08:44.680> about<00:08:44.920> the<00:08:45.040> dynamic<00:08:45.640> between 00:08:45.990 --> 00:08:46.000 align:start position:0% going to talk about the dynamic between 00:08:46.000 --> 00:08:48.990 align:start position:0% going to talk about the dynamic between l2s<00:08:46.839> and 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post<00:09:08.079> surge<00:09:09.079> um<00:09:09.279> so<00:09:09.680> what<00:09:09.839> this<00:09:09.959> shows<00:09:10.440> is<00:09:10.680> a 00:09:10.870 --> 00:09:10.880 align:start position:0% post surge um so what this shows is a 00:09:10.880 --> 00:09:14.630 align:start position:0% post surge um so what this shows is a simulation<00:09:11.680> for<00:09:12.040> 10,000<00:09:12.640> TPS<00:09:13.200> across<00:09:13.640> l2s 00:09:14.630 --> 00:09:14.640 align:start position:0% simulation for 10,000 TPS across l2s 00:09:14.640 --> 00:09:16.670 align:start position:0% simulation for 10,000 TPS across l2s which<00:09:14.760> is<00:09:15.040> pretty<00:09:15.399> feasible<00:09:15.959> and<00:09:16.120> reasonable 00:09:16.670 --> 00:09:16.680 align:start position:0% which is pretty feasible and reasonable 00:09:16.680 --> 00:09:20.310 align:start position:0% which is pretty feasible and reasonable I<00:09:16.800> think<00:09:17.519> 16<00:09:18.240> megabytes<00:09:18.839> of<00:09:18.959> blobs<00:09:19.399> per<00:09:19.560> block 00:09:20.310 --> 00:09:20.320 align:start position:0% I think 16 megabytes of blobs per block 00:09:20.320 --> 00:09:24.230 align:start position:0% I think 16 megabytes of blobs per block and<00:09:20.480> that<00:09:20.600> would<00:09:20.800> imply<00:09:21.120> a<00:09:21.640> 6.5%<00:09:22.640> yield<00:09:22.959> on<00:09:23.240> eth 00:09:24.230 --> 00:09:24.240 align:start position:0% and that would imply a 6.5% yield on eth 00:09:24.240 --> 00:09:26.750 align:start position:0% and that would imply a 6.5% yield on eth given<00:09:24.760> some<00:09:25.120> reasonable<00:09:25.720> user<00:09:26.240> price 00:09:26.750 --> 00:09:26.760 align:start position:0% given some reasonable user price 00:09:26.760 --> 00:09:28.910 align:start position:0% given some reasonable user price sensitivity<00:09:27.480> assumptions<00:09:28.480> so<00:09:28.720> what<00:09:28.800> that 00:09:28.910 --> 00:09:28.920 align:start position:0% sensitivity assumptions so what that 00:09:28.920 --> 00:09:31.030 align:start position:0% sensitivity assumptions so what that means<00:09:29.200> is<00:09:29.560> is<00:09:29.800> when<00:09:29.920> the<00:09:30.040> transaction<00:09:30.480> fees<00:09:30.839> go 00:09:31.030 --> 00:09:31.040 align:start position:0% means is is when the transaction fees go 00:09:31.040 --> 00:09:33.550 align:start position:0% means is is when the transaction fees go up<00:09:31.880> uh<00:09:31.959> a<00:09:32.079> smaller<00:09:32.480> percentage<00:09:32.920> of<00:09:33.040> the<00:09:33.160> users 00:09:33.550 --> 00:09:33.560 align:start position:0% up uh a smaller percentage of the users 00:09:33.560 --> 00:09:35.710 align:start position:0% up uh a smaller percentage of the users are<00:09:33.760> willing<00:09:34.160> to<00:09:34.440> transact<00:09:34.959> at<00:09:35.160> that<00:09:35.360> price 00:09:35.710 --> 00:09:35.720 align:start position:0% are willing to transact at that price 00:09:35.720 --> 00:09:37.190 align:start position:0% are willing to transact at that price because<00:09:36.000> they<00:09:36.160> might<00:09:36.320> be<00:09:36.600> sensitive<00:09:37.000> to 00:09:37.190 --> 00:09:37.200 align:start position:0% because they might be sensitive to 00:09:37.200 --> 00:09:39.710 align:start position:0% because they might be sensitive to higher<00:09:37.480> transaction 00:09:39.710 --> 00:09:39.720 align:start position:0% higher transaction 00:09:39.720 --> 00:09:43.230 align:start position:0% higher transaction fees<00:09:40.720> but<00:09:41.440> I<00:09:41.560> think<00:09:42.000> where<00:09:42.200> we<00:09:42.360> are<00:09:42.560> in<00:09:42.760> reality 00:09:43.230 --> 00:09:43.240 align:start position:0% fees but I think where we are in reality 00:09:43.240 --> 00:09:46.870 align:start position:0% fees but I think where we are in reality is<00:09:43.480> here<00:09:43.959> where<00:09:44.959> um<00:09:45.720> we're<00:09:46.000> at<00:09:46.160> this<00:09:46.360> temporary 00:09:46.870 --> 00:09:46.880 align:start position:0% is here where um we're at this temporary 00:09:46.880 --> 00:09:49.230 align:start position:0% is here where um we're at this temporary lull<00:09:47.320> where<00:09:47.480> the<00:09:47.560> L2<00:09:47.959> fees<00:09:48.279> are<00:09:48.519> very<00:09:48.800> low<00:09:49.120> and 00:09:49.230 --> 00:09:49.240 align:start position:0% lull where the L2 fees are very low and 00:09:49.240 --> 00:09:52.150 align:start position:0% lull where the L2 fees are very low and we're<00:09:49.399> in<00:09:49.519> a<00:09:49.720> period<00:09:50.320> where<00:09:50.800> we're<00:09:51.160> probably 00:09:52.150 --> 00:09:52.160 align:start position:0% we're in a period where we're probably 00:09:52.160 --> 00:09:55.630 align:start position:0% we're in a period where we're probably most<00:09:52.800> likely<00:09:53.800> going<00:09:54.040> to<00:09:54.720> exit<00:09:55.519> the 00:09:55.630 --> 00:09:55.640 align:start position:0% most likely going to exit the 00:09:55.640 --> 00:09:58.710 align:start position:0% most likely going to exit the bootstrapping<00:09:56.360> period<00:09:56.680> of<00:09:56.839> blob<00:09:57.200> pricing<00:09:58.000> and 00:09:58.710 --> 00:09:58.720 align:start position:0% bootstrapping period of blob pricing and 00:09:58.720 --> 00:10:00.790 align:start position:0% bootstrapping period of blob pricing and we<00:09:58.920> we'll<00:09:59.120> like<00:09:59.560> see<00:09:59.720> a<00:09:59.839> period<00:10:00.120> where<00:10:00.240> the<00:10:00.360> LT 00:10:00.790 --> 00:10:00.800 align:start position:0% we we'll like see a period where the LT 00:10:00.800 --> 00:10:02.430 align:start position:0% we we'll like see a period where the LT fees<00:10:01.079> tick 00:10:02.430 --> 00:10:02.440 align:start position:0% fees tick 00:10:02.440 --> 00:10:06.470 align:start position:0% fees tick up<00:10:03.440> so<00:10:03.680> for<00:10:03.880> example<00:10:04.519> in<00:10:04.680> this<00:10:04.839> scenario<00:10:05.480> here 00:10:06.470 --> 00:10:06.480 align:start position:0% up so for example in this scenario here 00:10:06.480 --> 00:10:09.630 align:start position:0% up so for example in this scenario here um<00:10:06.920> this<00:10:07.120> uses<00:10:07.839> the<00:10:08.040> current<00:10:08.640> specifications 00:10:09.630 --> 00:10:09.640 align:start position:0% um this uses the current specifications 00:10:09.640 --> 00:10:11.470 align:start position:0% um this uses the current specifications for<00:10:10.399> based<00:10:10.640> on 00:10:11.470 --> 00:10:11.480 align:start position:0% for based on 00:10:11.480 --> 00:10:14.990 align:start position:0% for based on 4844<00:10:12.480> um<00:10:13.040> in<00:10:13.240> this<00:10:13.399> scenario<00:10:14.000> it<00:10:14.160> assumes<00:10:14.720> five 00:10:14.990 --> 00:10:15.000 align:start position:0% 4844 um in this scenario it assumes five 00:10:15.000 --> 00:10:19.550 align:start position:0% 4844 um in this scenario it assumes five rollups<00:10:16.000> 300<00:10:16.640> TPS<00:10:17.399> per<00:10:17.640> rollup<00:10:18.480> the<00:10:18.640> same<00:10:19.079> user 00:10:19.550 --> 00:10:19.560 align:start position:0% rollups 300 TPS per rollup the same user 00:10:19.560 --> 00:10:21.910 align:start position:0% rollups 300 TPS per rollup the same user price<00:10:19.959> sensitivity<00:10:20.640> assumptions<00:10:21.640> and<00:10:21.800> what 00:10:21.910 --> 00:10:21.920 align:start position:0% price sensitivity assumptions and what 00:10:21.920 --> 00:10:24.030 align:start position:0% price sensitivity assumptions and what you<00:10:22.000> can<00:10:22.160> see<00:10:22.360> in<00:10:22.519> this<00:10:22.720> chart<00:10:23.519> and<00:10:23.640> I<00:10:23.760> think 00:10:24.030 --> 00:10:24.040 align:start position:0% you can see in this chart and I think 00:10:24.040 --> 00:10:27.190 align:start position:0% you can see in this chart and I think the<00:10:24.200> interesting<00:10:24.680> line<00:10:24.959> to<00:10:25.160> call<00:10:25.720> out<00:10:26.720> um<00:10:27.040> is 00:10:27.190 --> 00:10:27.200 align:start position:0% the interesting line to call out um is 00:10:27.200 --> 00:10:30.150 align:start position:0% the interesting line to call out um is the<00:10:27.360> green<00:10:27.640> line<00:10:28.160> which<00:10:28.279> is<00:10:28.399> the<00:10:28.560> actual<00:10:28.839> TPS 00:10:30.150 --> 00:10:30.160 align:start position:0% the green line which is the actual TPS 00:10:30.160 --> 00:10:33.190 align:start position:0% the green line which is the actual TPS um<00:10:30.399> that<00:10:30.640> reflects<00:10:31.440> user<00:10:31.839> Sensi<00:10:32.760> user 00:10:33.190 --> 00:10:33.200 align:start position:0% um that reflects user Sensi user 00:10:33.200 --> 00:10:36.069 align:start position:0% um that reflects user Sensi user sensitivity<00:10:33.720> to<00:10:33.920> higher<00:10:34.200> transaction<00:10:34.720> fees 00:10:36.069 --> 00:10:36.079 align:start position:0% sensitivity to higher transaction fees 00:10:36.079 --> 00:10:39.310 align:start position:0% sensitivity to higher transaction fees and<00:10:37.079> in<00:10:37.279> my<00:10:37.440> opinion<00:10:37.920> five<00:10:38.160> rollups<00:10:38.720> and<00:10:38.880> 300 00:10:39.310 --> 00:10:39.320 align:start position:0% and in my opinion five rollups and 300 00:10:39.320 --> 00:10:41.629 align:start position:0% and in my opinion five rollups and 300 TPS<00:10:39.959> if<00:10:40.040> you<00:10:40.160> look<00:10:40.360> at<00:10:40.920> the<00:10:41.079> number<00:10:41.360> of 00:10:41.629 --> 00:10:41.639 align:start position:0% TPS if you look at the number of 00:10:41.639 --> 00:10:44.750 align:start position:0% TPS if you look at the number of projects<00:10:42.120> kind<00:10:42.240> of<00:10:42.399> in<00:10:42.560> the<00:10:42.760> pipeline<00:10:43.639> that<00:10:43.959> is 00:10:44.750 --> 00:10:44.760 align:start position:0% projects kind of in the pipeline that is 00:10:44.760 --> 00:10:47.150 align:start position:0% projects kind of in the pipeline that is uh<00:10:45.360> pretty<00:10:45.600> doable<00:10:46.200> in<00:10:46.320> terms<00:10:46.600> of<00:10:46.880> what<00:10:47.000> we 00:10:47.150 --> 00:10:47.160 align:start position:0% uh pretty doable in terms of what we 00:10:47.160 --> 00:10:49.910 align:start position:0% uh pretty doable in terms of what we might<00:10:47.399> expect<00:10:47.680> to<00:10:47.800> see<00:10:48.079> over<00:10:48.320> the<00:10:48.480> next<00:10:48.920> year 00:10:49.910 --> 00:10:49.920 align:start position:0% might expect to see over the next year 00:10:49.920 --> 00:10:51.470 align:start position:0% might expect to see over the next year um<00:10:50.160> and<00:10:50.399> what<00:10:50.519> we<00:10:50.639> can<00:10:50.839> actually<00:10:51.000> see<00:10:51.200> in<00:10:51.360> this 00:10:51.470 --> 00:10:51.480 align:start position:0% um and what we can actually see in this 00:10:51.480 --> 00:10:54.790 align:start position:0% um and what we can actually see in this chart<00:10:51.880> is<00:10:52.160> it<00:10:52.320> implies<00:10:52.959> that<00:10:53.720> the<00:10:54.040> ethereum 00:10:54.790 --> 00:10:54.800 align:start position:0% chart is it implies that the ethereum 00:10:54.800 --> 00:10:57.190 align:start position:0% chart is it implies that the ethereum blob<00:10:55.240> Market<00:10:55.920> could<00:10:56.160> potentially<00:10:56.639> serve<00:10:56.920> as<00:10:57.040> a 00:10:57.190 --> 00:10:57.200 align:start position:0% blob Market could potentially serve as a 00:10:57.200 --> 00:10:58.990 align:start position:0% blob Market could potentially serve as a constraining<00:10:57.839> factor<00:10:58.160> on<00:10:58.320> the<00:10:58.480> ability<00:10:58.839> for 00:10:58.990 --> 00:10:59.000 align:start position:0% constraining factor on the ability for 00:10:59.000 --> 00:11:01.470 align:start position:0% constraining factor on the ability for these<00:10:59.279> rollups<00:10:59.760> to<00:11:00.680> increase<00:11:01.200> their 00:11:01.470 --> 00:11:01.480 align:start position:0% these rollups to increase their 00:11:01.480 --> 00:11:07.750 align:start position:0% these rollups to increase their throughput<00:11:02.120> and<00:11:02.360> increase 00:11:07.750 --> 00:11:07.760 align:start position:0% 00:11:07.760 --> 00:11:11.389 align:start position:0% activity<00:11:08.760> so<00:11:09.360> in<00:11:09.560> terms<00:11:10.000> of<00:11:10.720> in<00:11:10.839> terms<00:11:11.040> of<00:11:11.240> the 00:11:11.389 --> 00:11:11.399 align:start position:0% activity so in terms of in terms of the 00:11:11.399 --> 00:11:15.710 align:start position:0% activity so in terms of in terms of the question<00:11:11.959> are<00:11:12.240> l2s<00:11:13.079> extractive<00:11:14.079> I<00:11:14.639> think<00:11:15.639> I 00:11:15.710 --> 00:11:15.720 align:start position:0% question are l2s extractive I think I 00:11:15.720 --> 00:11:16.949 align:start position:0% question are l2s extractive I think I think<00:11:15.880> the<00:11:16.040> question<00:11:16.279> is<00:11:16.480> actually<00:11:16.720> very 00:11:16.949 --> 00:11:16.959 align:start position:0% think the question is actually very 00:11:16.959 --> 00:11:18.790 align:start position:0% think the question is actually very nuanced<00:11:17.480> and<00:11:17.639> is<00:11:17.839> actually<00:11:18.480> quite 00:11:18.790 --> 00:11:18.800 align:start position:0% nuanced and is actually quite 00:11:18.800 --> 00:11:21.190 align:start position:0% nuanced and is actually quite complicated<00:11:19.519> and<00:11:19.680> I<00:11:19.800> think<00:11:20.320> the<00:11:20.480> true<00:11:20.839> answer 00:11:21.190 --> 00:11:21.200 align:start position:0% complicated and I think the true answer 00:11:21.200 --> 00:11:24.110 align:start position:0% complicated and I think the true answer is<00:11:21.440> that<00:11:21.680> we<00:11:21.800> don't<00:11:22.320> actually<00:11:22.839> know<00:11:23.839> and<00:11:24.000> I 00:11:24.110 --> 00:11:24.120 align:start position:0% is that we don't actually know and I 00:11:24.120 --> 00:11:26.269 align:start position:0% is that we don't actually know and I think<00:11:24.240> there<00:11:24.320> are<00:11:24.560> three<00:11:24.800> reasons<00:11:25.240> for<00:11:25.560> that 00:11:26.269 --> 00:11:26.279 align:start position:0% think there are three reasons for that 00:11:26.279 --> 00:11:28.829 align:start position:0% think there are three reasons for that the<00:11:26.480> first<00:11:26.839> is<00:11:27.200> the<00:11:27.320> L1<00:11:27.760> settlement<00:11:28.279> fees<00:11:28.680> have 00:11:28.829 --> 00:11:28.839 align:start position:0% the first is the L1 settlement fees have 00:11:28.839 --> 00:11:31.150 align:start position:0% the first is the L1 settlement fees have never<00:11:29.399> actually<00:11:29.680> been<00:11:29.959> high<00:11:30.240> enough<00:11:30.560> to<00:11:30.760> test 00:11:31.150 --> 00:11:31.160 align:start position:0% never actually been high enough to test 00:11:31.160 --> 00:11:34.110 align:start position:0% never actually been high enough to test ethereum's<00:11:32.160> Network<00:11:32.600> effect<00:11:33.399> so<00:11:33.800> what<00:11:33.959> that 00:11:34.110 --> 00:11:34.120 align:start position:0% ethereum's Network effect so what that 00:11:34.120 --> 00:11:36.590 align:start position:0% ethereum's Network effect so what that means<00:11:34.680> is<00:11:35.480> we've<00:11:35.680> never<00:11:36.000> actually<00:11:36.200> seen<00:11:36.440> a 00:11:36.590 --> 00:11:36.600 align:start position:0% means is we've never actually seen a 00:11:36.600 --> 00:11:38.949 align:start position:0% means is we've never actually seen a scenario<00:11:37.120> where<00:11:37.320> l2s<00:11:37.920> have<00:11:38.079> been<00:11:38.279> faced<00:11:38.760> with 00:11:38.949 --> 00:11:38.959 align:start position:0% scenario where l2s have been faced with 00:11:38.959 --> 00:11:42.470 align:start position:0% scenario where l2s have been faced with increasing<00:11:39.680> L1<00:11:40.320> settlement<00:11:40.839> fees<00:11:41.600> so<00:11:41.800> we're 00:11:42.470 --> 00:11:42.480 align:start position:0% increasing L1 settlement fees so we're 00:11:42.480 --> 00:11:45.069 align:start position:0% increasing L1 settlement fees so we're really<00:11:42.760> uncertain<00:11:43.320> about<00:11:43.800> how<00:11:44.200> the<00:11:44.320> l2s<00:11:44.880> might 00:11:45.069 --> 00:11:45.079 align:start position:0% really uncertain about how the l2s might 00:11:45.079 --> 00:11:48.069 align:start position:0% really uncertain about how the l2s might react<00:11:45.600> in<00:11:45.800> that<00:11:45.920> type<00:11:46.079> of<00:11:46.240> scenario<00:11:47.240> whether 00:11:48.069 --> 00:11:48.079 align:start position:0% react in that type of scenario whether 00:11:48.079 --> 00:11:50.550 align:start position:0% react in that type of scenario whether they<00:11:48.240> might<00:11:48.519> look<00:11:48.800> to<00:11:49.160> an<00:11:49.360> alternative<00:11:50.000> da 00:11:50.550 --> 00:11:50.560 align:start position:0% they might look to an alternative da 00:11:50.560 --> 00:11:54.310 align:start position:0% they might look to an alternative da solution<00:11:51.560> whether<00:11:51.880> they<00:11:52.079> might<00:11:53.079> uh<00:11:53.760> be<00:11:53.920> forced 00:11:54.310 --> 00:11:54.320 align:start position:0% solution whether they might uh be forced 00:11:54.320 --> 00:11:57.430 align:start position:0% solution whether they might uh be forced to<00:11:54.959> decrease<00:11:55.480> their<00:11:55.880> margins<00:11:56.880> whether<00:11:57.240> they 00:11:57.430 --> 00:11:57.440 align:start position:0% to decrease their margins whether they 00:11:57.440 --> 00:12:01.150 align:start position:0% to decrease their margins whether they might<00:11:58.240> um<00:11:59.560> potentially<00:12:00.120> even<00:12:00.320> become<00:12:00.560> an<00:12:00.720> L1 00:12:01.150 --> 00:12:01.160 align:start position:0% might um potentially even become an L1 00:12:01.160 --> 00:12:03.590 align:start position:0% might um potentially even become an L1 on<00:12:01.320> their<00:12:01.480> own<00:12:01.920> so<00:12:02.920> I<00:12:03.000> think<00:12:03.200> that<00:12:03.360> first 00:12:03.590 --> 00:12:03.600 align:start position:0% on their own so I think that first 00:12:03.600 --> 00:12:05.069 align:start position:0% on their own so I think that first scenario<00:12:04.040> we've<00:12:04.240> never<00:12:04.519> actually<00:12:04.839> really 00:12:05.069 --> 00:12:05.079 align:start position:0% scenario we've never actually really 00:12:05.079 --> 00:12:08.629 align:start position:0% scenario we've never actually really seen<00:12:05.680> that<00:12:05.880> in<00:12:06.120> practice<00:12:06.639> so<00:12:07.639> we<00:12:07.760> don't<00:12:08.560> we 00:12:08.629 --> 00:12:08.639 align:start position:0% seen that in practice so we don't we 00:12:08.639 --> 00:12:10.470 align:start position:0% seen that in practice so we don't we don't<00:12:08.839> really<00:12:09.000> want<00:12:09.120> to<00:12:09.320> impose<00:12:09.880> that 00:12:10.470 --> 00:12:10.480 align:start position:0% don't really want to impose that 00:12:10.480 --> 00:12:13.350 align:start position:0% don't really want to impose that judgment<00:12:11.480> um<00:12:12.000> upon<00:12:12.360> the<00:12:12.560> layer 00:12:13.350 --> 00:12:13.360 align:start position:0% judgment um upon the layer 00:12:13.360 --> 00:12:16.710 align:start position:0% judgment um upon the layer twos<00:12:14.360> so<00:12:14.600> the<00:12:14.760> second<00:12:15.000> point<00:12:15.399> is<00:12:15.639> that<00:12:16.440> there's 00:12:16.710 --> 00:12:16.720 align:start position:0% twos so the second point is that there's 00:12:16.720 --> 00:12:19.910 align:start position:0% twos so the second point is that there's a<00:12:17.399> there's<00:12:17.600> a<00:12:17.720> lot<00:12:17.880> of<00:12:18.160> value<00:12:18.560> for<00:12:18.959> for<00:12:19.160> l2s 00:12:19.910 --> 00:12:19.920 align:start position:0% a there's a lot of value for for l2s 00:12:19.920 --> 00:12:23.910 align:start position:0% a there's a lot of value for for l2s being<00:12:20.160> l2s<00:12:21.000> and<00:12:21.199> I<00:12:21.399> think<00:12:22.399> um<00:12:22.880> Beyond<00:12:23.480> just<00:12:23.720> the 00:12:23.910 --> 00:12:23.920 align:start position:0% being l2s and I think um Beyond just the 00:12:23.920 --> 00:12:26.069 align:start position:0% being l2s and I think um Beyond just the label<00:12:24.320> of<00:12:24.480> what<00:12:24.639> people<00:12:25.000> might<00:12:25.240> say<00:12:25.560> oh<00:12:25.800> like 00:12:26.069 --> 00:12:26.079 align:start position:0% label of what people might say oh like 00:12:26.079 --> 00:12:27.629 align:start position:0% label of what people might say oh like I'm<00:12:26.199> going<00:12:26.279> to<00:12:26.399> launch<00:12:26.600> an<00:12:26.720> L2<00:12:27.199> on<00:12:27.360> top<00:12:27.480> of 00:12:27.629 --> 00:12:27.639 align:start position:0% I'm going to launch an L2 on top of 00:12:27.639 --> 00:12:29.829 align:start position:0% I'm going to launch an L2 on top of ethereum<00:12:28.440> what<00:12:28.560> they<00:12:28.760> actually<00:12:29.279> get<00:12:29.440> is<00:12:29.639> quite 00:12:29.829 --> 00:12:29.839 align:start position:0% ethereum what they actually get is quite 00:12:29.839 --> 00:12:33.069 align:start position:0% ethereum what they actually get is quite a<00:12:30.000> lot<00:12:30.720> so<00:12:31.480> imagine<00:12:31.959> having<00:12:32.240> to<00:12:32.480> write<00:12:32.920> your 00:12:33.069 --> 00:12:33.079 align:start position:0% a lot so imagine having to write your 00:12:33.079 --> 00:12:35.069 align:start position:0% a lot so imagine having to write your own<00:12:33.320> block<00:12:33.680> Explorer<00:12:34.279> your<00:12:34.399> own<00:12:34.639> virtual 00:12:35.069 --> 00:12:35.079 align:start position:0% own block Explorer your own virtual 00:12:35.079 --> 00:12:37.389 align:start position:0% own block Explorer your own virtual machine<00:12:35.959> your<00:12:36.120> own<00:12:36.560> smart<00:12:36.920> contract 00:12:37.389 --> 00:12:37.399 align:start position:0% machine your own smart contract 00:12:37.399 --> 00:12:39.310 align:start position:0% machine your own smart contract programming<00:12:37.920> language<00:12:38.760> recruiting 00:12:39.310 --> 00:12:39.320 align:start position:0% programming language recruiting 00:12:39.320 --> 00:12:41.590 align:start position:0% programming language recruiting developers<00:12:40.000> to<00:12:40.160> learn<00:12:40.480> your<00:12:40.639> smart<00:12:41.000> contract 00:12:41.590 --> 00:12:41.600 align:start position:0% developers to learn your smart contract 00:12:41.600 --> 00:12:45.550 align:start position:0% developers to learn your smart contract developing<00:12:42.600> uh<00:12:43.079> language<00:12:44.079> um<00:12:44.560> and<00:12:45.360> I<00:12:45.440> think 00:12:45.550 --> 00:12:45.560 align:start position:0% developing uh language um and I think 00:12:45.560 --> 00:12:47.069 align:start position:0% developing uh language um and I think the<00:12:45.720> reality<00:12:46.120> is<00:12:46.279> that<00:12:46.399> the<00:12:46.480> l2s<00:12:46.880> are 00:12:47.069 --> 00:12:47.079 align:start position:0% the reality is that the l2s are 00:12:47.079 --> 00:12:49.030 align:start position:0% the reality is that the l2s are relatively<00:12:47.600> new<00:12:48.360> and<00:12:48.519> because<00:12:48.760> they<00:12:48.880> are 00:12:49.030 --> 00:12:49.040 align:start position:0% relatively new and because they are 00:12:49.040 --> 00:12:51.230 align:start position:0% relatively new and because they are relatively<00:12:49.519> new<00:12:49.839> they<00:12:50.120> benefit<00:12:50.560> tremendously 00:12:51.230 --> 00:12:51.240 align:start position:0% relatively new they benefit tremendously 00:12:51.240 --> 00:12:53.310 align:start position:0% relatively new they benefit tremendously from<00:12:51.440> being<00:12:51.720> able<00:12:52.000> to<00:12:52.279> bootstrap<00:12:53.079> their 00:12:53.310 --> 00:12:53.320 align:start position:0% from being able to bootstrap their 00:12:53.320 --> 00:12:56.949 align:start position:0% from being able to bootstrap their virtual<00:12:53.680> machine<00:12:54.480> tooling<00:12:55.320> developers<00:12:56.320> users 00:12:56.949 --> 00:12:56.959 align:start position:0% virtual machine tooling developers users 00:12:56.959 --> 00:13:00.030 align:start position:0% virtual machine tooling developers users Community<00:12:57.959> assets<00:12:58.360> from<00:12:58.560> ethereum<00:12:59.320> and<00:12:59.839> even 00:13:00.030 --> 00:13:00.040 align:start position:0% Community assets from ethereum and even 00:13:00.040 --> 00:13:03.389 align:start position:0% Community assets from ethereum and even in<00:13:00.199> terms<00:13:00.399> of<00:13:00.639> applications<00:13:01.279> as 00:13:03.389 --> 00:13:03.399 align:start position:0% in terms of applications as 00:13:03.399 --> 00:13:05.750 align:start position:0% in terms of applications as well<00:13:04.399> and<00:13:04.519> I<00:13:04.600> think<00:13:04.760> the<00:13:04.920> third<00:13:05.160> reason<00:13:05.519> why<00:13:05.639> we 00:13:05.750 --> 00:13:05.760 align:start position:0% well and I think the third reason why we 00:13:05.760 --> 00:13:07.470 align:start position:0% well and I think the third reason why we don't<00:13:06.000> actually<00:13:06.279> know<00:13:06.560> whether<00:13:06.800> l2s<00:13:07.240> are 00:13:07.470 --> 00:13:07.480 align:start position:0% don't actually know whether l2s are 00:13:07.480 --> 00:13:09.790 align:start position:0% don't actually know whether l2s are extractive<00:13:07.959> today<00:13:08.399> is<00:13:08.560> that<00:13:09.240> most<00:13:09.440> of<00:13:09.600> the 00:13:09.790 --> 00:13:09.800 align:start position:0% extractive today is that most of the 00:13:09.800 --> 00:13:13.310 align:start position:0% extractive today is that most of the analysis<00:13:10.720> in<00:13:10.880> terms<00:13:11.199> of<00:13:11.720> even<00:13:12.199> Tim<00:13:12.480> Robinson's 00:13:13.310 --> 00:13:13.320 align:start position:0% analysis in terms of even Tim Robinson's 00:13:13.320 --> 00:13:15.910 align:start position:0% analysis in terms of even Tim Robinson's dashboard<00:13:14.320> um<00:13:14.519> tends<00:13:14.760> to<00:13:15.000> assume<00:13:15.480> that<00:13:15.680> you 00:13:15.910 --> 00:13:15.920 align:start position:0% dashboard um tends to assume that you 00:13:15.920 --> 00:13:20.550 align:start position:0% dashboard um tends to assume that you have<00:13:16.639> n<00:13:17.040> equal<00:13:17.519> siiz<00:13:18.320> l2s<00:13:19.320> um<00:13:19.639> which<00:13:20.120> one<00:13:20.320> might 00:13:20.550 --> 00:13:20.560 align:start position:0% have n equal siiz l2s um which one might 00:13:20.560 --> 00:13:22.870 align:start position:0% have n equal siiz l2s um which one might consider<00:13:20.959> the<00:13:21.120> current<00:13:21.440> state<00:13:21.920> because<00:13:22.600> we're 00:13:22.870 --> 00:13:22.880 align:start position:0% consider the current state because we're 00:13:22.880 --> 00:13:25.590 align:start position:0% consider the current state because we're kind<00:13:23.000> of<00:13:23.199> In<00:13:23.399> This<00:13:23.800> Moment<00:13:24.079> In<00:13:24.360> Time<00:13:24.800> where 00:13:25.590 --> 00:13:25.600 align:start position:0% kind of In This Moment In Time where 00:13:25.600 --> 00:13:28.829 align:start position:0% kind of In This Moment In Time where there<00:13:25.800> isn't<00:13:26.079> a<00:13:26.279> clear<00:13:26.839> breakout<00:13:27.399> L2<00:13:27.920> winner 00:13:28.829 --> 00:13:28.839 align:start position:0% there isn't a clear breakout L2 winner 00:13:28.839 --> 00:13:31.389 align:start position:0% there isn't a clear breakout L2 winner and<00:13:29.199> whether<00:13:29.399> you<00:13:29.560> look<00:13:29.760> at<00:13:30.120> tvl<00:13:31.000> whether<00:13:31.240> you 00:13:31.389 --> 00:13:31.399 align:start position:0% and whether you look at tvl whether you 00:13:31.399 --> 00:13:33.470 align:start position:0% and whether you look at tvl whether you look<00:13:31.600> at<00:13:31.839> transactions<00:13:32.639> whether<00:13:32.880> you<00:13:33.040> look<00:13:33.240> at 00:13:33.470 --> 00:13:33.480 align:start position:0% look at transactions whether you look at 00:13:33.480 --> 00:13:35.750 align:start position:0% look at transactions whether you look at number<00:13:33.680> of<00:13:33.839> wallets<00:13:34.639> whatever<00:13:35.199> metric<00:13:35.600> you 00:13:35.750 --> 00:13:35.760 align:start position:0% number of wallets whatever metric you 00:13:35.760 --> 00:13:38.389 align:start position:0% number of wallets whatever metric you look<00:13:36.000> at<00:13:36.720> generally<00:13:37.399> you<00:13:37.560> tend<00:13:37.760> to<00:13:37.920> see 00:13:38.389 --> 00:13:38.399 align:start position:0% look at generally you tend to see 00:13:38.399 --> 00:13:41.269 align:start position:0% look at generally you tend to see fluctuating<00:13:39.199> periods<00:13:39.760> where<00:13:40.399> you<00:13:40.600> have<00:13:40.880> three 00:13:41.269 --> 00:13:41.279 align:start position:0% fluctuating periods where you have three 00:13:41.279 --> 00:13:44.670 align:start position:0% fluctuating periods where you have three dominant<00:13:42.040> l2s<00:13:43.040> and<00:13:43.560> they're<00:13:43.800> all<00:13:44.079> splitting 00:13:44.670 --> 00:13:44.680 align:start position:0% dominant l2s and they're all splitting 00:13:44.680 --> 00:13:47.590 align:start position:0% dominant l2s and they're all splitting market<00:13:45.079> share<00:13:45.440> at<00:13:45.639> different<00:13:45.920> points<00:13:46.160> in<00:13:46.519> time 00:13:47.590 --> 00:13:47.600 align:start position:0% market share at different points in time 00:13:47.600 --> 00:13:49.470 align:start position:0% market share at different points in time um<00:13:48.600> and<00:13:48.800> I 00:13:49.470 --> 00:13:49.480 align:start position:0% um and I 00:13:49.480 --> 00:13:52.910 align:start position:0% um and I think<00:13:50.480> and<00:13:50.600> I<00:13:50.720> think<00:13:51.360> that<00:13:51.560> type<00:13:51.800> of<00:13:52.399> analysis 00:13:52.910 --> 00:13:52.920 align:start position:0% think and I think that type of analysis 00:13:52.920 --> 00:13:54.749 align:start position:0% think and I think that type of analysis and<00:13:53.160> thinking<00:13:53.440> about<00:13:53.639> the<00:13:53.759> current<00:13:54.160> state<00:13:54.600> is 00:13:54.749 --> 00:13:54.759 align:start position:0% and thinking about the current state is 00:13:54.759 --> 00:13:56.189 align:start position:0% and thinking about the current state is probably<00:13:55.040> not<00:13:55.199> likely<00:13:55.480> to<00:13:55.600> hold<00:13:55.839> into<00:13:56.040> the 00:13:56.189 --> 00:13:56.199 align:start position:0% probably not likely to hold into the 00:13:56.199 --> 00:13:58.829 align:start position:0% probably not likely to hold into the future<00:13:57.120> so<00:13:57.759> it<00:13:57.880> doesn't<00:13:58.160> really<00:13:58.399> consider<00:13:58.720> the 00:13:58.829 --> 00:13:58.839 align:start position:0% future so it doesn't really consider the 00:13:58.839 --> 00:14:01.269 align:start position:0% future so it doesn't really consider the case<00:13:59.279> where<00:13:59.399> you<00:13:59.560> have<00:13:59.759> one<00:13:59.959> or<00:14:00.120> two<00:14:00.360> l2s<00:14:01.120> that 00:14:01.269 --> 00:14:01.279 align:start position:0% case where you have one or two l2s that 00:14:01.279 --> 00:14:04.949 align:start position:0% case where you have one or two l2s that take<00:14:01.639> 80<00:14:02.000> to<00:14:02.120> 90%<00:14:02.839> of<00:14:03.079> activity<00:14:03.880> and<00:14:04.440> and<00:14:04.759> and 00:14:04.949 --> 00:14:04.959 align:start position:0% take 80 to 90% of activity and and and 00:14:04.959 --> 00:14:07.590 align:start position:0% take 80 to 90% of activity and and and economic<00:14:05.519> value<00:14:06.519> whereas<00:14:06.839> the<00:14:07.160> remainder 00:14:07.590 --> 00:14:07.600 align:start position:0% economic value whereas the remainder 00:14:07.600 --> 00:14:09.430 align:start position:0% economic value whereas the remainder have<00:14:07.759> marginal<00:14:08.279> economic<00:14:08.759> activity<00:14:09.279> and<00:14:09.360> I 00:14:09.430 --> 00:14:09.440 align:start position:0% have marginal economic activity and I 00:14:09.440 --> 00:14:10.550 align:start position:0% have marginal economic activity and I think<00:14:09.639> this<00:14:09.720> is<00:14:09.959> actually<00:14:10.160> a<00:14:10.320> really 00:14:10.550 --> 00:14:10.560 align:start position:0% think this is actually a really 00:14:10.560 --> 00:14:12.790 align:start position:0% think this is actually a really important<00:14:11.199> case<00:14:11.839> and<00:14:12.000> scenario<00:14:12.440> to<00:14:12.560> think 00:14:12.790 --> 00:14:12.800 align:start position:0% important case and scenario to think 00:14:12.800 --> 00:14:14.590 align:start position:0% important case and scenario to think through<00:14:13.199> because<00:14:13.519> when<00:14:13.639> you<00:14:13.839> look<00:14:14.000> at<00:14:14.279> these 00:14:14.590 --> 00:14:14.600 align:start position:0% through because when you look at these 00:14:14.600 --> 00:14:17.430 align:start position:0% through because when you look at these Financial<00:14:15.240> networks<00:14:16.240> generally<00:14:16.880> you<00:14:17.040> do<00:14:17.240> tend 00:14:17.430 --> 00:14:17.440 align:start position:0% Financial networks generally you do tend 00:14:17.440 --> 00:14:19.990 align:start position:0% Financial networks generally you do tend to<00:14:17.560> see<00:14:17.959> Power<00:14:18.199> law<00:14:18.519> effects<00:14:19.360> and<00:14:19.519> I<00:14:19.639> think<00:14:19.839> the 00:14:19.990 --> 00:14:20.000 align:start position:0% to see Power law effects and I think the 00:14:20.000 --> 00:14:21.829 align:start position:0% to see Power law effects and I think the scenario<00:14:20.560> in<00:14:20.720> which<00:14:20.880> you<00:14:21.040> have<00:14:21.240> one<00:14:21.399> or<00:14:21.560> two 00:14:21.829 --> 00:14:21.839 align:start position:0% scenario in which you have one or two 00:14:21.839 --> 00:14:24.949 align:start position:0% scenario in which you have one or two very<00:14:22.079> dominant<00:14:22.480> l2s<00:14:23.440> the<00:14:23.639> question<00:14:24.240> about 00:14:24.949 --> 00:14:24.959 align:start position:0% very dominant l2s the question about 00:14:24.959 --> 00:14:27.790 align:start position:0% very dominant l2s the question about where<00:14:25.519> does<00:14:26.519> where<00:14:26.680> does<00:14:26.839> the<00:14:27.000> market<00:14:27.399> power 00:14:27.790 --> 00:14:27.800 align:start position:0% where does where does the market power 00:14:27.800 --> 00:14:29.670 align:start position:0% where does where does the market power and<00:14:27.920> The<00:14:28.040> Leverage<00:14:28.440> between<00:14:28.720> the<00:14:29.199> twos<00:14:29.560> and 00:14:29.670 --> 00:14:29.680 align:start position:0% and The Leverage between the twos and 00:14:29.680 --> 00:14:34.110 align:start position:0% and The Leverage between the twos and mean<00:14:30.240> that<00:14:31.240> at<00:14:31.399> what<00:14:31.560> point<00:14:32.360> might<00:14:32.639> that<00:14:33.120> flip 00:14:34.110 --> 00:14:34.120 align:start position:0% mean that at what point might that flip 00:14:34.120 --> 00:14:36.389 align:start position:0% mean that at what point might that flip um<00:14:34.360> and<00:14:34.519> I<00:14:34.639> think<00:14:35.360> probably<00:14:35.680> more<00:14:35.880> work<00:14:36.160> has<00:14:36.240> to 00:14:36.389 --> 00:14:36.399 align:start position:0% um and I think probably more work has to 00:14:36.399 --> 00:14:40.310 align:start position:0% um and I think probably more work has to be<00:14:36.959> done<00:14:37.199> on<00:14:37.399> that 00:14:40.310 --> 00:14:40.320 align:start position:0% 00:14:40.320 --> 00:14:45.590 align:start position:0% side<00:14:41.320> so<00:14:42.240> in<00:14:43.120> in<00:14:43.240> the<00:14:43.399> final<00:14:43.839> few<00:14:44.519> minutes<00:14:44.959> here 00:14:45.590 --> 00:14:45.600 align:start position:0% side so in in the final few minutes here 00:14:45.600 --> 00:14:47.069 align:start position:0% side so in in the final few minutes here I<00:14:45.680> want<00:14:45.800> to<00:14:46.000> talk<00:14:46.240> about<00:14:46.600> some<00:14:46.759> of<00:14:46.880> the 00:14:47.069 --> 00:14:47.079 align:start position:0% I want to talk about some of the 00:14:47.079 --> 00:14:49.910 align:start position:0% I want to talk about some of the hypothetical<00:14:47.920> conditions<00:14:48.920> uh<00:14:49.040> where<00:14:49.199> l2s 00:14:49.910 --> 00:14:49.920 align:start position:0% hypothetical conditions uh where l2s 00:14:49.920 --> 00:14:54.030 align:start position:0% hypothetical conditions uh where l2s could<00:14:50.279> become<00:14:50.639> more<00:14:51.360> attractive<00:14:52.360> more 00:14:54.030 --> 00:14:54.040 align:start position:0% could become more attractive more 00:14:54.040 --> 00:14:58.710 align:start position:0% could become more attractive more more<00:14:55.040> um<00:14:55.360> so<00:14:55.720> so<00:14:55.880> the<00:14:56.040> first<00:14:56.399> is<00:14:57.079> um<00:14:58.079> about<00:14:58.600> if 00:14:58.710 --> 00:14:58.720 align:start position:0% more um so so the first is um about if 00:14:58.720 --> 00:15:01.269 align:start position:0% more um so so the first is um about if the<00:14:59.040> L1<00:14:59.519> has<00:14:59.759> limited<00:15:00.279> transaction 00:15:01.269 --> 00:15:01.279 align:start position:0% the L1 has limited transaction 00:15:01.279 --> 00:15:02.389 align:start position:0% the L1 has limited transaction processing 00:15:02.389 --> 00:15:02.399 align:start position:0% processing 00:15:02.399 --> 00:15:04.749 align:start position:0% processing capability<00:15:03.399> um<00:15:03.639> and<00:15:03.839> I<00:15:03.959> think<00:15:04.480> this<00:15:04.560> is 00:15:04.749 --> 00:15:04.759 align:start position:0% capability um and I think this is 00:15:04.759 --> 00:15:07.350 align:start position:0% capability um and I think this is important<00:15:05.320> because<00:15:05.680> I<00:15:05.800> think<00:15:06.560> first<00:15:06.839> off<00:15:07.240> the 00:15:07.350 --> 00:15:07.360 align:start position:0% important because I think first off the 00:15:07.360 --> 00:15:09.990 align:start position:0% important because I think first off the economic<00:15:07.880> situation<00:15:08.399> of<00:15:08.639> e<00:15:08.959> the<00:15:09.199> asset<00:15:09.720> could 00:15:09.990 --> 00:15:10.000 align:start position:0% economic situation of e the asset could 00:15:10.000 --> 00:15:14.150 align:start position:0% economic situation of e the asset could become<00:15:10.560> more<00:15:10.839> risky<00:15:11.399> if<00:15:12.240> the<00:15:13.240> if<00:15:13.920> if<00:15:14.040> the 00:15:14.150 --> 00:15:14.160 align:start position:0% become more risky if the if if the 00:15:14.160 --> 00:15:15.710 align:start position:0% become more risky if the if if the amount<00:15:14.360> of<00:15:14.480> fees<00:15:14.759> that<00:15:14.920> are<00:15:15.079> being<00:15:15.320> generated 00:15:15.710 --> 00:15:15.720 align:start position:0% amount of fees that are being generated 00:15:15.720 --> 00:15:19.790 align:start position:0% amount of fees that are being generated on<00:15:15.880> Main<00:15:16.160> net<00:15:16.639> um<00:15:16.759> are<00:15:16.959> not<00:15:17.240> high<00:15:17.519> enough<00:15:18.360> to<00:15:19.360> uh 00:15:19.790 --> 00:15:19.800 align:start position:0% on Main net um are not high enough to uh 00:15:19.800 --> 00:15:21.189 align:start position:0% on Main net um are not high enough to uh ensure<00:15:20.120> that<00:15:20.279> a<00:15:20.399> large<00:15:20.720> portion<00:15:20.959> of<00:15:21.079> the 00:15:21.189 --> 00:15:21.199 align:start position:0% ensure that a large portion of the 00:15:21.199 --> 00:15:23.990 align:start position:0% ensure that a large portion of the network<00:15:21.519> ends<00:15:21.720> up<00:15:21.839> being<00:15:22.040> staked<00:15:23.040> I<00:15:23.160> think<00:15:23.279> l2s 00:15:23.990 --> 00:15:24.000 align:start position:0% network ends up being staked I think l2s 00:15:24.000 --> 00:15:26.310 align:start position:0% network ends up being staked I think l2s also<00:15:24.360> tend<00:15:24.639> to<00:15:25.240> benefit<00:15:25.680> from<00:15:25.959> highly 00:15:26.310 --> 00:15:26.320 align:start position:0% also tend to benefit from highly 00:15:26.320 --> 00:15:29.550 align:start position:0% also tend to benefit from highly developed<00:15:26.920> Financial<00:15:27.360> system<00:15:27.639> on<00:15:27.800> the<00:15:27.920> L1 00:15:29.550 --> 00:15:29.560 align:start position:0% developed Financial system on the L1 00:15:29.560 --> 00:15:32.150 align:start position:0% developed Financial system on the L1 um<00:15:30.399> and<00:15:30.560> I<00:15:30.680> think<00:15:31.040> the<00:15:31.199> second<00:15:31.440> scenario<00:15:31.959> which 00:15:32.150 --> 00:15:32.160 align:start position:0% um and I think the second scenario which 00:15:32.160 --> 00:15:34.829 align:start position:0% um and I think the second scenario which I<00:15:32.319> talked<00:15:32.600> about<00:15:32.839> a<00:15:32.959> bit<00:15:33.160> earlier<00:15:33.880> is<00:15:34.399> the<00:15:34.560> case 00:15:34.829 --> 00:15:34.839 align:start position:0% I talked about a bit earlier is the case 00:15:34.839 --> 00:15:37.230 align:start position:0% I talked about a bit earlier is the case where<00:15:35.079> you<00:15:35.240> have<00:15:35.360> a<00:15:35.519> power<00:15:35.839> law<00:15:36.079> effect<00:15:36.319> for<00:15:36.440> L2 00:15:37.230 --> 00:15:37.240 align:start position:0% where you have a power law effect for L2 00:15:37.240 --> 00:15:40.030 align:start position:0% where you have a power law effect for L2 so<00:15:37.440> for<00:15:37.600> example<00:15:38.000> a<00:15:38.199> dominant<00:15:38.600> L2<00:15:39.360> would<00:15:39.639> be 00:15:40.030 --> 00:15:40.040 align:start position:0% so for example a dominant L2 would be 00:15:40.040 --> 00:15:42.790 align:start position:0% so for example a dominant L2 would be the<00:15:40.240> majority<00:15:40.759> blob<00:15:41.399> purchaser<00:15:42.399> and<00:15:42.560> with 00:15:42.790 --> 00:15:42.800 align:start position:0% the majority blob purchaser and with 00:15:42.800 --> 00:15:44.829 align:start position:0% the majority blob purchaser and with very<00:15:43.079> clever<00:15:43.480> batching<00:15:44.480> they<00:15:44.600> could 00:15:44.829 --> 00:15:44.839 align:start position:0% very clever batching they could 00:15:44.839 --> 00:15:47.430 align:start position:0% very clever batching they could potentially<00:15:45.399> pin<00:15:45.720> blob<00:15:46.120> pricing<00:15:46.600> below<00:15:46.959> price 00:15:47.430 --> 00:15:47.440 align:start position:0% potentially pin blob pricing below price 00:15:47.440 --> 00:15:49.189 align:start position:0% potentially pin blob pricing below price Discovery<00:15:48.279> that's<00:15:48.480> actually<00:15:48.759> happening 00:15:49.189 --> 00:15:49.199 align:start position:0% Discovery that's actually happening 00:15:49.199 --> 00:15:51.230 align:start position:0% Discovery that's actually happening organically<00:15:49.839> today<00:15:50.199> so<00:15:50.399> if<00:15:50.480> you<00:15:50.639> look<00:15:50.800> at<00:15:51.040> how 00:15:51.230 --> 00:15:51.240 align:start position:0% organically today so if you look at how 00:15:51.240 --> 00:15:54.389 align:start position:0% organically today so if you look at how the<00:15:51.399> l2s<00:15:52.199> behave<00:15:53.079> in<00:15:53.279> periods<00:15:53.759> where<00:15:54.000> blob 00:15:54.389 --> 00:15:54.399 align:start position:0% the l2s behave in periods where blob 00:15:54.399 --> 00:15:57.389 align:start position:0% the l2s behave in periods where blob pricing<00:15:54.880> does<00:15:55.120> Spike<00:15:55.920> we're<00:15:56.199> already<00:15:56.519> seeing 00:15:57.389 --> 00:15:57.399 align:start position:0% pricing does Spike we're already seeing 00:15:57.399 --> 00:15:58.990 align:start position:0% pricing does Spike we're already seeing uh<00:15:57.560> behavior<00:15:58.120> that<00:15:58.240> suggest<00:15:58.560> that<00:15:58.680> there 00:15:58.990 --> 00:15:59.000 align:start position:0% uh behavior that suggest that there 00:15:59.000 --> 00:16:01.110 align:start position:0% uh behavior that suggest that there willing<00:15:59.199> to<00:15:59.360> spread<00:15:59.680> out<00:16:00.319> how<00:16:00.600> quickly<00:16:01.000> they 00:16:01.110 --> 00:16:01.120 align:start position:0% willing to spread out how quickly they 00:16:01.120 --> 00:16:05.430 align:start position:0% willing to spread out how quickly they syn<00:16:01.519> their<00:16:01.720> state<00:16:02.480> across<00:16:02.959> time<00:16:03.959> um<00:16:04.319> and<00:16:05.199> the 00:16:05.430 --> 00:16:05.440 align:start position:0% syn their state across time um and the 00:16:05.440 --> 00:16:07.509 align:start position:0% syn their state across time um and the consequence<00:16:06.000> of<00:16:06.240> that<00:16:06.480> is<00:16:06.600> that<00:16:06.800> users<00:16:07.319> who 00:16:07.509 --> 00:16:07.519 align:start position:0% consequence of that is that users who 00:16:07.519 --> 00:16:09.749 align:start position:0% consequence of that is that users who might<00:16:07.800> want<00:16:08.040> to<00:16:08.240> look<00:16:08.519> for<00:16:08.959> a 00:16:09.749 --> 00:16:09.759 align:start position:0% might want to look for a 00:16:09.759 --> 00:16:12.389 align:start position:0% might want to look for a unilateral<00:16:10.759> exit<00:16:11.079> from<00:16:11.279> the<00:16:11.399> L2<00:16:11.959> might<00:16:12.120> not<00:16:12.279> be 00:16:12.389 --> 00:16:12.399 align:start position:0% unilateral exit from the L2 might not be 00:16:12.399 --> 00:16:15.430 align:start position:0% unilateral exit from the L2 might not be able<00:16:12.639> to<00:16:12.800> do<00:16:13.120> that<00:16:13.600> um<00:16:13.800> if<00:16:13.959> the<00:16:14.440> um<00:16:14.800> if<00:16:14.959> the<00:16:15.040> l2s 00:16:15.430 --> 00:16:15.440 align:start position:0% able to do that um if the um if the l2s 00:16:15.440 --> 00:16:17.550 align:start position:0% able to do that um if the um if the l2s are<00:16:15.560> being<00:16:15.759> more<00:16:16.040> cautious<00:16:16.560> and<00:16:16.959> doing<00:16:17.279> more 00:16:17.550 --> 00:16:17.560 align:start position:0% are being more cautious and doing more 00:16:17.560 --> 00:16:21.550 align:start position:0% are being more cautious and doing more optimization<00:16:18.240> about<00:16:18.519> how<00:16:18.720> frequently<00:16:19.240> they 00:16:21.550 --> 00:16:21.560 align:start position:0% 00:16:21.560 --> 00:16:25.230 align:start position:0% post<00:16:22.560> the<00:16:22.680> next<00:16:23.199> hypothetical<00:16:24.199> uh<00:16:24.519> scenario 00:16:25.230 --> 00:16:25.240 align:start position:0% post the next hypothetical uh scenario 00:16:25.240 --> 00:16:27.309 align:start position:0% post the next hypothetical uh scenario is<00:16:25.560> a<00:16:25.720> case<00:16:25.959> where<00:16:26.160> the<00:16:26.279> incentive<00:16:26.759> structures 00:16:27.309 --> 00:16:27.319 align:start position:0% is a case where the incentive structures 00:16:27.319 --> 00:16:30.590 align:start position:0% is a case where the incentive structures for<00:16:27.519> L2<00:16:28.040> tokens<00:16:28.480> or<00:16:28.680> not<00:16:28.959> on<00:16:29.480> E<00:16:29.839> gas<00:16:30.120> tokens 00:16:30.590 --> 00:16:30.600 align:start position:0% for L2 tokens or not on E gas tokens 00:16:30.600 --> 00:16:33.150 align:start position:0% for L2 tokens or not on E gas tokens become<00:16:30.920> more<00:16:31.399> prominent<00:16:32.399> so<00:16:32.680> if<00:16:32.759> you<00:16:32.880> look<00:16:33.040> at 00:16:33.150 --> 00:16:33.160 align:start position:0% become more prominent so if you look at 00:16:33.160 --> 00:16:36.350 align:start position:0% become more prominent so if you look at the<00:16:33.279> breakdown<00:16:33.680> of<00:16:34.199> activity<00:16:34.720> on<00:16:34.920> l2s<00:16:35.839> and<00:16:36.000> you 00:16:36.350 --> 00:16:36.360 align:start position:0% the breakdown of activity on l2s and you 00:16:36.360 --> 00:16:38.829 align:start position:0% the breakdown of activity on l2s and you look<00:16:36.519> at<00:16:36.680> the<00:16:36.880> split<00:16:37.279> between<00:16:37.959> the<00:16:38.120> l2s<00:16:38.759> that 00:16:38.829 --> 00:16:38.839 align:start position:0% look at the split between the l2s that 00:16:38.839 --> 00:16:42.150 align:start position:0% look at the split between the l2s that are<00:16:38.959> using<00:16:39.279> eth<00:16:39.560> as<00:16:39.639> a<00:16:39.800> gas<00:16:40.079> token<00:16:41.079> and<00:16:41.519> the<00:16:41.680> L 00:16:42.150 --> 00:16:42.160 align:start position:0% are using eth as a gas token and the L 00:16:42.160 --> 00:16:45.110 align:start position:0% are using eth as a gas token and the L l2s<00:16:42.920> in<00:16:43.160> quotation<00:16:43.600> marks<00:16:44.040> or<00:16:44.240> l3s<00:16:44.920> that 00:16:45.110 --> 00:16:45.120 align:start position:0% l2s in quotation marks or l3s that 00:16:45.120 --> 00:16:47.550 align:start position:0% l2s in quotation marks or l3s that aren't<00:16:45.399> using<00:16:45.720> eth<00:16:46.160> as<00:16:46.240> a<00:16:46.360> gas<00:16:46.639> token<00:16:47.279> today 00:16:47.550 --> 00:16:47.560 align:start position:0% aren't using eth as a gas token today 00:16:47.560 --> 00:16:50.629 align:start position:0% aren't using eth as a gas token today that<00:16:47.680> split<00:16:47.959> is<00:16:48.120> actually<00:16:48.839> 50/50<00:16:49.839> um<00:16:50.319> so<00:16:50.519> I 00:16:50.629 --> 00:16:50.639 align:start position:0% that split is actually 50/50 um so I 00:16:50.639 --> 00:16:52.910 align:start position:0% that split is actually 50/50 um so I think<00:16:51.240> the<00:16:51.519> the<00:16:51.639> notion<00:16:52.000> that<00:16:52.240> every<00:16:52.399> single 00:16:52.910 --> 00:16:52.920 align:start position:0% think the the notion that every single 00:16:52.920 --> 00:16:56.350 align:start position:0% think the the notion that every single rollup<00:16:53.920> necessarily<00:16:54.560> has<00:16:54.680> to<00:16:54.959> you<00:16:55.360> use<00:16:55.639> eth<00:16:56.240> as 00:16:56.350 --> 00:16:56.360 align:start position:0% rollup necessarily has to you use eth as 00:16:56.360 --> 00:16:59.350 align:start position:0% rollup necessarily has to you use eth as a<00:16:56.560> gas<00:16:56.800> token<00:16:57.480> we're<00:16:57.800> already<00:16:58.360> seeing 00:16:59.350 --> 00:16:59.360 align:start position:0% a gas token we're already seeing 00:16:59.360 --> 00:17:01.269 align:start position:0% a gas token we're already seeing some<00:16:59.560> scenarios<00:17:00.079> in<00:17:00.240> which<00:17:00.480> that<00:17:00.639> might<00:17:00.800> not 00:17:01.269 --> 00:17:01.279 align:start position:0% some scenarios in which that might not 00:17:01.279 --> 00:17:03.630 align:start position:0% some scenarios in which that might not necessarily<00:17:01.920> be<00:17:02.120> the 00:17:03.630 --> 00:17:03.640 align:start position:0% necessarily be the 00:17:03.640 --> 00:17:06.270 align:start position:0% necessarily be the case<00:17:04.640> and<00:17:04.760> I<00:17:04.880> think<00:17:05.160> that's<00:17:05.400> related<00:17:05.799> to<00:17:06.160> one 00:17:06.270 --> 00:17:06.280 align:start position:0% case and I think that's related to one 00:17:06.280 --> 00:17:08.069 align:start position:0% case and I think that's related to one of<00:17:06.439> these<00:17:06.600> other<00:17:06.880> points<00:17:07.319> which<00:17:07.480> is<00:17:07.959> the 00:17:08.069 --> 00:17:08.079 align:start position:0% of these other points which is the 00:17:08.079 --> 00:17:10.470 align:start position:0% of these other points which is the notion<00:17:08.400> of<00:17:08.520> a<00:17:08.679> siloed<00:17:09.120> L2<00:17:09.720> with<00:17:09.839> their<00:17:10.000> own 00:17:10.470 --> 00:17:10.480 align:start position:0% notion of a siloed L2 with their own 00:17:10.480 --> 00:17:13.829 align:start position:0% notion of a siloed L2 with their own settlement<00:17:11.039> kingdoms<00:17:11.520> for<00:17:11.839> l3s<00:17:12.839> or<00:17:13.400> similar 00:17:13.829 --> 00:17:13.839 align:start position:0% settlement kingdoms for l3s or similar 00:17:13.839 --> 00:17:17.549 align:start position:0% settlement kingdoms for l3s or similar types<00:17:14.600> of<00:17:15.600> similar<00:17:16.000> types<00:17:16.199> of<00:17:16.319> rollups<00:17:17.280> that's 00:17:17.549 --> 00:17:17.559 align:start position:0% types of similar types of rollups that's 00:17:17.559 --> 00:17:20.590 align:start position:0% types of similar types of rollups that's another<00:17:17.919> scenario<00:17:18.559> in<00:17:18.799> which<00:17:19.720> um<00:17:19.839> the<00:17:20.000> l2s 00:17:20.590 --> 00:17:20.600 align:start position:0% another scenario in which um the l2s 00:17:20.600 --> 00:17:23.510 align:start position:0% another scenario in which um the l2s might<00:17:21.360> uh<00:17:22.240> push<00:17:22.480> for<00:17:22.640> an<00:17:22.760> alternative<00:17:23.280> gas 00:17:23.510 --> 00:17:23.520 align:start position:0% might uh push for an alternative gas 00:17:23.520 --> 00:17:25.909 align:start position:0% might uh push for an alternative gas token<00:17:24.039> which<00:17:24.240> again<00:17:24.520> would<00:17:24.720> not<00:17:25.079> benefit<00:17:25.600> eth 00:17:25.909 --> 00:17:25.919 align:start position:0% token which again would not benefit eth 00:17:25.919 --> 00:17:27.590 align:start position:0% token which again would not benefit eth as<00:17:26.039> an 00:17:27.590 --> 00:17:27.600 align:start position:0% as an 00:17:27.600 --> 00:17:31.350 align:start position:0% as an asset<00:17:28.600> um 00:17:31.350 --> 00:17:31.360 align:start position:0% 00:17:31.360 --> 00:17:35.750 align:start position:0% and<00:17:32.360> and<00:17:32.480> I<00:17:32.600> think<00:17:32.760> the<00:17:32.880> final<00:17:33.200> point<00:17:33.720> is<00:17:34.720> um 00:17:35.750 --> 00:17:35.760 align:start position:0% and and I think the final point is um 00:17:35.760 --> 00:17:40.110 align:start position:0% and and I think the final point is um potentially<00:17:36.760> uh<00:17:37.720> incentive<00:17:38.200> structures<00:17:38.720> for 00:17:40.110 --> 00:17:40.120 align:start position:0% potentially uh incentive structures for 00:17:40.120 --> 00:17:43.029 align:start position:0% potentially uh incentive structures for l2s<00:17:41.120> um<00:17:41.600> in<00:17:41.799> which<00:17:42.000> they<00:17:42.120> start<00:17:42.360> to<00:17:42.559> develop 00:17:43.029 --> 00:17:43.039 align:start position:0% l2s um in which they start to develop 00:17:43.039 --> 00:17:45.110 align:start position:0% l2s um in which they start to develop competing<00:17:43.600> security<00:17:44.039> models<00:17:44.480> in<00:17:44.600> terms<00:17:44.960> of 00:17:45.110 --> 00:17:45.120 align:start position:0% competing security models in terms of 00:17:45.120 --> 00:17:47.230 align:start position:0% competing security models in terms of being<00:17:45.320> able<00:17:45.559> to<00:17:45.840> use<00:17:46.120> their<00:17:46.440> native 00:17:47.230 --> 00:17:47.240 align:start position:0% being able to use their native 00:17:47.240 --> 00:17:49.789 align:start position:0% being able to use their native governance<00:17:47.760> token<00:17:48.200> for<00:17:48.480> things<00:17:49.320> other<00:17:49.600> than 00:17:49.789 --> 00:17:49.799 align:start position:0% governance token for things other than 00:17:49.799 --> 00:17:52.190 align:start position:0% governance token for things other than just<00:17:50.000> governance<00:17:50.600> could<00:17:50.919> potentially<00:17:51.919> uh<00:17:52.039> be 00:17:52.190 --> 00:17:52.200 align:start position:0% just governance could potentially uh be 00:17:52.200 --> 00:17:54.669 align:start position:0% just governance could potentially uh be a<00:17:52.480> condition<00:17:53.200> in<00:17:53.400> which<00:17:53.600> the<00:17:53.760> l2s<00:17:54.280> could<00:17:54.440> also 00:17:54.669 --> 00:17:54.679 align:start position:0% a condition in which the l2s could also 00:17:54.679 --> 00:17:55.950 align:start position:0% a condition in which the l2s could also become<00:17:55.039> more 00:17:55.950 --> 00:17:55.960 align:start position:0% become more 00:17:55.960 --> 00:17:59.149 align:start position:0% become more extractive<00:17:56.960> um<00:17:57.400> so<00:17:57.760> that<00:17:57.919> concludes<00:17:58.280> my<00:17:58.440> talk 00:17:59.149 --> 00:17:59.159 align:start position:0% extractive um so that concludes my talk 00:17:59.159 --> 00:18:01.669 align:start position:0% extractive um so that concludes my talk um<00:17:59.480> I<00:17:59.600> think<00:17:59.880> it's<00:18:00.080> still<00:18:00.760> ultimately<00:18:01.400> too 00:18:01.669 --> 00:18:01.679 align:start position:0% um I think it's still ultimately too 00:18:01.679 --> 00:18:03.830 align:start position:0% um I think it's still ultimately too early<00:18:02.000> to<00:18:02.200> tell<00:18:02.640> in<00:18:02.799> terms<00:18:03.159> of<00:18:03.440> whether<00:18:03.720> the 00:18:03.830 --> 00:18:03.840 align:start position:0% early to tell in terms of whether the 00:18:03.840 --> 00:18:06.590 align:start position:0% early to tell in terms of whether the l2s<00:18:04.400> are<00:18:04.640> extractive<00:18:05.200> or<00:18:05.360> not<00:18:06.000> the<00:18:06.120> reason<00:18:06.400> for 00:18:06.590 --> 00:18:06.600 align:start position:0% l2s are extractive or not the reason for 00:18:06.600 --> 00:18:08.510 align:start position:0% l2s are extractive or not the reason for that<00:18:06.960> is<00:18:07.120> we've<00:18:07.320> never<00:18:07.559> actually<00:18:07.880> seen<00:18:08.360> a 00:18:08.510 --> 00:18:08.520 align:start position:0% that is we've never actually seen a 00:18:08.520 --> 00:18:11.070 align:start position:0% that is we've never actually seen a scenario<00:18:09.200> in<00:18:09.400> which<00:18:10.159> uh<00:18:10.280> the<00:18:10.360> l2s<00:18:10.799> have<00:18:10.919> been 00:18:11.070 --> 00:18:11.080 align:start position:0% scenario in which uh the l2s have been 00:18:11.080 --> 00:18:13.070 align:start position:0% scenario in which uh the l2s have been put<00:18:11.240> in<00:18:11.360> a<00:18:11.559> position<00:18:12.000> to<00:18:12.240> make<00:18:12.440> a<00:18:12.600> choice 00:18:13.070 --> 00:18:13.080 align:start position:0% put in a position to make a choice 00:18:13.080 --> 00:18:15.510 align:start position:0% put in a position to make a choice whether<00:18:13.320> they<00:18:13.480> stay<00:18:13.799> as<00:18:13.919> an<00:18:14.080> L2<00:18:14.559> or<00:18:15.200> they<00:18:15.320> use 00:18:15.510 --> 00:18:15.520 align:start position:0% whether they stay as an L2 or they use 00:18:15.520 --> 00:18:18.310 align:start position:0% whether they stay as an L2 or they use an<00:18:15.679> Alda<00:18:16.200> layer<00:18:16.520> or<00:18:16.679> they<00:18:16.799> become<00:18:17.039> an<00:18:17.159> L1<00:18:17.799> or 00:18:18.310 --> 00:18:18.320 align:start position:0% an Alda layer or they become an L1 or 00:18:18.320 --> 00:18:21.149 align:start position:0% an Alda layer or they become an L1 or they<00:18:18.480> do<00:18:18.679> something<00:18:19.080> else<00:18:20.080> um<00:18:20.440> but<00:18:20.840> I<00:18:20.919> think 00:18:21.149 --> 00:18:21.159 align:start position:0% they do something else um but I think 00:18:21.159 --> 00:18:23.190 align:start position:0% they do something else um but I think that<00:18:21.360> time<00:18:21.559> is<00:18:21.799> actually<00:18:22.159> coming<00:18:22.480> very<00:18:22.799> soon 00:18:23.190 --> 00:18:23.200 align:start position:0% that time is actually coming very soon 00:18:23.200 --> 00:18:25.270 align:start position:0% that time is actually coming very soon so<00:18:23.600> probably<00:18:24.039> likely<00:18:24.440> over<00:18:24.640> the<00:18:24.799> next<00:18:25.039> one 00:18:25.270 --> 00:18:25.280 align:start position:0% so probably likely over the next one 00:18:25.280 --> 00:18:27.149 align:start position:0% so probably likely over the next one year<00:18:25.559> we'll<00:18:25.799> start<00:18:26.000> to<00:18:26.159> see<00:18:26.679> some<00:18:26.840> of<00:18:27.000> these 00:18:27.149 --> 00:18:27.159 align:start position:0% year we'll start to see some of these 00:18:27.159 --> 00:18:29.710 align:start position:0% year we'll start to see some of these choices<00:18:27.679> being<00:18:27.919> forced<00:18:29.000> um<00:18:29.200> just<00:18:29.400> by<00:18:29.559> the 00:18:29.710 --> 00:18:29.720 align:start position:0% choices being forced um just by the 00:18:29.720 --> 00:18:32.270 align:start position:0% choices being forced um just by the nature<00:18:30.039> of<00:18:30.240> the<00:18:30.360> blob<00:18:30.720> fees<00:18:31.240> going<00:18:31.480> into<00:18:31.799> price 00:18:32.270 --> 00:18:32.280 align:start position:0% nature of the blob fees going into price 00:18:32.280 --> 00:18:37.830 align:start position:0% nature of the blob fees going into price Discovery 00:18:37.830 --> 00:18:37.840 align:start position:0% 00:18:37.840 --> 00:18:40.630 align:start position:0% thanks<00:18:38.840> all<00:18:39.000> right<00:18:39.240> thank<00:18:39.400> You<00:18:39.600> Ren<00:18:40.280> uh<00:18:40.440> you 00:18:40.630 --> 00:18:40.640 align:start position:0% thanks all right thank You Ren uh you 00:18:40.640 --> 00:18:42.789 align:start position:0% thanks all right thank You Ren uh you feel<00:18:40.880> free<00:18:41.080> to<00:18:41.320> come<00:18:41.559> to<00:18:42.000> the<00:18:42.120> center<00:18:42.480> over 00:18:42.789 --> 00:18:42.799 align:start position:0% feel free to come to the center over 00:18:42.799 --> 00:18:45.669 align:start position:0% feel free to come to the center over here<00:18:43.679> yeah<00:18:44.000> this<00:18:44.159> one<00:18:44.360> would<00:18:44.520> be<00:18:44.640> fine<00:18:45.360> so 00:18:45.669 --> 00:18:45.679 align:start position:0% here yeah this one would be fine so 00:18:45.679 --> 00:18:48.470 align:start position:0% here yeah this one would be fine so let's<00:18:46.039> go<00:18:46.200> over<00:18:46.480> some<00:18:47.080> questions<00:18:48.080> uh<00:18:48.240> let's 00:18:48.470 --> 00:18:48.480 align:start position:0% let's go over some questions uh let's 00:18:48.480 --> 00:18:50.549 align:start position:0% let's go over some questions uh let's start<00:18:49.000> from<00:18:49.280> the<00:18:49.440> first<00:18:49.679> one<00:18:50.000> do<00:18:50.120> you<00:18:50.240> think 00:18:50.549 --> 00:18:50.559 align:start position:0% start from the first one do you think 00:18:50.559 --> 00:18:54.270 align:start position:0% start from the first one do you think the<00:18:50.840> exact<00:18:51.360> copy<00:18:51.720> of<00:18:51.880> EIP<00:18:52.640> 1559<00:18:53.600> mechanism 00:18:54.270 --> 00:18:54.280 align:start position:0% the exact copy of EIP 1559 mechanism 00:18:54.280 --> 00:18:56.750 align:start position:0% the exact copy of EIP 1559 mechanism determining<00:18:54.840> L1<00:18:55.280> fees<00:18:56.039> is<00:18:56.240> the<00:18:56.480> right 00:18:56.750 --> 00:18:56.760 align:start position:0% determining L1 fees is the right 00:18:56.760 --> 00:19:04.390 align:start position:0% determining L1 fees is the right approach<00:18:57.280> for<00:18:57.640> determining<00:18:58.200> blob<00:18:58.520> fees 00:19:04.390 --> 00:19:04.400 align:start position:0% 00:19:04.400 --> 00:19:07.190 align:start position:0% yeah<00:19:05.039> um<00:19:05.559> I<00:19:05.640> think<00:19:05.840> this<00:19:05.960> is<00:19:06.159> a<00:19:06.480> really<00:19:06.840> tricky 00:19:07.190 --> 00:19:07.200 align:start position:0% yeah um I think this is a really tricky 00:19:07.200 --> 00:19:09.510 align:start position:0% yeah um I think this is a really tricky question<00:19:07.880> um<00:19:08.039> so<00:19:08.240> I<00:19:08.360> think<00:19:09.000> where<00:19:09.159> my<00:19:09.320> mind 00:19:09.510 --> 00:19:09.520 align:start position:0% question um so I think where my mind 00:19:09.520 --> 00:19:11.830 align:start position:0% question um so I think where my mind jumps<00:19:09.919> immediately<00:19:10.640> is<00:19:10.919> I<00:19:11.080> look<00:19:11.280> at<00:19:11.720> the 00:19:11.830 --> 00:19:11.840 align:start position:0% jumps immediately is I look at the 00:19:11.840 --> 00:19:13.710 align:start position:0% jumps immediately is I look at the amount<00:19:12.039> of<00:19:12.280> execution<00:19:12.919> that<00:19:13.039> has<00:19:13.200> been<00:19:13.360> moved 00:19:13.710 --> 00:19:13.720 align:start position:0% amount of execution that has been moved 00:19:13.720 --> 00:19:16.909 align:start position:0% amount of execution that has been moved off<00:19:14.000> of<00:19:14.280> from<00:19:14.480> the<00:19:14.600> L1<00:19:15.080> to<00:19:15.240> the<00:19:15.480> L2<00:19:16.480> and<00:19:16.799> the 00:19:16.909 --> 00:19:16.919 align:start position:0% off of from the L1 to the L2 and the 00:19:16.919 --> 00:19:18.789 align:start position:0% off of from the L1 to the L2 and the amount<00:19:17.159> of<00:19:17.360> transactions<00:19:17.840> on<00:19:18.000> the<00:19:18.080> L2<00:19:18.440> today 00:19:18.789 --> 00:19:18.799 align:start position:0% amount of transactions on the L2 today 00:19:18.799 --> 00:19:21.390 align:start position:0% amount of transactions on the L2 today greatly<00:19:19.600> outweigh<00:19:20.600> uh<00:19:21.000> the<00:19:21.120> amount<00:19:21.280> of 00:19:21.390 --> 00:19:21.400 align:start position:0% greatly outweigh uh the amount of 00:19:21.400 --> 00:19:23.750 align:start position:0% greatly outweigh uh the amount of transactions<00:19:22.039> ever<00:19:22.840> in<00:19:22.960> ethereum's<00:19:23.480> history 00:19:23.750 --> 00:19:23.760 align:start position:0% transactions ever in ethereum's history 00:19:23.760 --> 00:19:26.470 align:start position:0% transactions ever in ethereum's history in<00:19:23.880> terms<00:19:24.080> of<00:19:24.280> like<00:19:24.440> per<00:19:24.679> second<00:19:25.000> or<00:19:25.200> per<00:19:25.480> block 00:19:26.470 --> 00:19:26.480 align:start position:0% in terms of like per second or per block 00:19:26.480 --> 00:19:29.710 align:start position:0% in terms of like per second or per block um<00:19:26.760> but<00:19:27.240> in<00:19:27.400> terms<00:19:27.760> of<00:19:28.159> the<00:19:28.320> denom<00:19:28.919> or<00:19:29.360> in<00:19:29.480> terms 00:19:29.710 --> 00:19:29.720 align:start position:0% um but in terms of the denom or in terms 00:19:29.720 --> 00:19:32.830 align:start position:0% um but in terms of the denom or in terms of<00:19:30.000> e<00:19:30.320> being<00:19:30.480> used<00:19:30.960> as<00:19:31.039> a<00:19:31.240> gas<00:19:31.520> token<00:19:31.919> for<00:19:32.159> those 00:19:32.830 --> 00:19:32.840 align:start position:0% of e being used as a gas token for those 00:19:32.840 --> 00:19:35.029 align:start position:0% of e being used as a gas token for those transactions<00:19:33.840> um<00:19:34.200> it's<00:19:34.400> actually<00:19:34.760> quite 00:19:35.029 --> 00:19:35.039 align:start position:0% transactions um it's actually quite 00:19:35.039 --> 00:19:36.669 align:start position:0% transactions um it's actually quite minimal<00:19:35.600> even<00:19:35.880> compared<00:19:36.240> to<00:19:36.400> like<00:19:36.520> the 00:19:36.669 --> 00:19:36.679 align:start position:0% minimal even compared to like the 00:19:36.679 --> 00:19:38.390 align:start position:0% minimal even compared to like the earliest<00:19:37.200> periods<00:19:37.559> in<00:19:37.679> like<00:19:37.840> ethereum's 00:19:38.390 --> 00:19:38.400 align:start position:0% earliest periods in like ethereum's 00:19:38.400 --> 00:19:41.029 align:start position:0% earliest periods in like ethereum's history<00:19:38.760> so<00:19:38.919> I<00:19:39.120> think<00:19:40.120> um<00:19:40.360> one<00:19:40.520> of<00:19:40.640> the<00:19:40.799> things 00:19:41.029 --> 00:19:41.039 align:start position:0% history so I think um one of the things 00:19:41.039 --> 00:19:45.430 align:start position:0% history so I think um one of the things to<00:19:41.240> consider<00:19:42.200> is<00:19:42.960> that<00:19:43.960> that<00:19:44.200> ratio<00:19:44.840> might<00:19:45.120> be 00:19:45.430 --> 00:19:45.440 align:start position:0% to consider is that that ratio might be 00:19:45.440 --> 00:19:48.510 align:start position:0% to consider is that that ratio might be slightly<00:19:45.960> off<00:19:46.840> um<00:19:47.159> and<00:19:47.360> I<00:19:47.480> think<00:19:47.919> the<00:19:48.039> only<00:19:48.320> way 00:19:48.510 --> 00:19:48.520 align:start position:0% slightly off um and I think the only way 00:19:48.520 --> 00:19:51.789 align:start position:0% slightly off um and I think the only way you<00:19:48.720> really<00:19:49.280> see<00:19:50.280> that<00:19:50.480> settle<00:19:51.159> is<00:19:51.400> blob 00:19:51.789 --> 00:19:51.799 align:start position:0% you really see that settle is blob 00:19:51.799 --> 00:19:53.590 align:start position:0% you really see that settle is blob pricing<00:19:52.200> has<00:19:52.400> to<00:19:52.520> go<00:19:52.679> into<00:19:52.840> price<00:19:53.240> discovery 00:19:53.590 --> 00:19:53.600 align:start position:0% pricing has to go into price discovery 00:19:53.600 --> 00:19:55.789 align:start position:0% pricing has to go into price discovery which<00:19:53.720> means<00:19:53.960> there<00:19:54.080> needs<00:19:54.320> to<00:19:54.440> be<00:19:54.600> more<00:19:54.840> l2s 00:19:55.789 --> 00:19:55.799 align:start position:0% which means there needs to be more l2s 00:19:55.799 --> 00:19:57.470 align:start position:0% which means there needs to be more l2s and<00:19:56.200> that<00:19:56.320> will<00:19:56.559> likely<00:19:56.880> happen<00:19:57.120> over<00:19:57.320> the 00:19:57.470 --> 00:19:57.480 align:start position:0% and that will likely happen over the 00:19:57.480 --> 00:20:00.789 align:start position:0% and that will likely happen over the next<00:19:57.720> year<00:19:58.960> cool<00:19:59.600> and<00:19:59.880> another<00:20:00.320> question 00:20:00.789 --> 00:20:00.799 align:start position:0% next year cool and another question 00:20:00.799 --> 00:20:03.230 align:start position:0% next year cool and another question currently<00:20:01.400> the<00:20:01.520> L2<00:20:02.000> mainten<00:20:02.360> n<00:20:02.640> seems 00:20:03.230 --> 00:20:03.240 align:start position:0% currently the L2 mainten n seems 00:20:03.240 --> 00:20:05.430 align:start position:0% currently the L2 mainten n seems symbiotic<00:20:04.240> but<00:20:04.480> what<00:20:04.640> if<00:20:04.840> they<00:20:05.039> started 00:20:05.430 --> 00:20:05.440 align:start position:0% symbiotic but what if they started 00:20:05.440 --> 00:20:07.630 align:start position:0% symbiotic but what if they started paying<00:20:05.760> fees<00:20:06.159> in<00:20:06.320> their<00:20:06.480> own<00:20:06.840> tokens<00:20:07.480> they 00:20:07.630 --> 00:20:07.640 align:start position:0% paying fees in their own tokens they 00:20:07.640 --> 00:20:09.789 align:start position:0% paying fees in their own tokens they have<00:20:07.760> a<00:20:07.919> fair<00:20:08.200> amount<00:20:08.480> of<00:20:08.720> incentive<00:20:09.280> to<00:20:09.520> keep 00:20:09.789 --> 00:20:09.799 align:start position:0% have a fair amount of incentive to keep 00:20:09.799 --> 00:20:14.029 align:start position:0% have a fair amount of incentive to keep assets<00:20:10.320> logged<00:20:10.679> in<00:20:10.919> their<00:20:11.159> system<00:20:12.039> without 00:20:14.029 --> 00:20:14.039 align:start position:0% assets logged in their system without 00:20:14.039 --> 00:20:17.029 align:start position:0% assets logged in their system without interoperability<00:20:15.039> yeah<00:20:15.799> um<00:20:16.520> I<00:20:16.640> talked<00:20:16.840> to 00:20:17.029 --> 00:20:17.039 align:start position:0% interoperability yeah um I talked to 00:20:17.039 --> 00:20:19.149 align:start position:0% interoperability yeah um I talked to this<00:20:17.240> point<00:20:17.679> in<00:20:17.880> the<00:20:18.039> last<00:20:18.240> slide<00:20:18.600> about 00:20:19.149 --> 00:20:19.159 align:start position:0% this point in the last slide about 00:20:19.159 --> 00:20:21.110 align:start position:0% this point in the last slide about hypothetical<00:20:19.799> scenarios<00:20:20.320> so<00:20:20.520> I<00:20:20.640> think<00:20:21.000> some 00:20:21.110 --> 00:20:21.120 align:start position:0% hypothetical scenarios so I think some 00:20:21.120 --> 00:20:24.789 align:start position:0% hypothetical scenarios so I think some of<00:20:21.320> the<00:20:22.039> highest<00:20:22.320> forms<00:20:22.679> of<00:20:22.960> risk<00:20:23.960> um<00:20:24.480> are 00:20:24.789 --> 00:20:24.799 align:start position:0% of the highest forms of risk um are 00:20:24.799 --> 00:20:28.270 align:start position:0% of the highest forms of risk um are exactly<00:20:25.280> that<00:20:25.600> so<00:20:25.840> for<00:20:26.000> example<00:20:26.919> l2s<00:20:27.919> in<00:20:28.080> their 00:20:28.270 --> 00:20:28.280 align:start position:0% exactly that so for example l2s in their 00:20:28.280 --> 00:20:31.110 align:start position:0% exactly that so for example l2s in their current<00:20:28.880> State<00:20:29.520> as<00:20:30.240> having<00:20:30.480> their<00:20:30.640> tokens<00:20:31.000> as 00:20:31.110 --> 00:20:31.120 align:start position:0% current State as having their tokens as 00:20:31.120 --> 00:20:34.230 align:start position:0% current State as having their tokens as a<00:20:31.240> governance<00:20:31.720> token<00:20:32.120> it's<00:20:32.280> highly<00:20:32.600> likely 00:20:34.230 --> 00:20:34.240 align:start position:0% a governance token it's highly likely 00:20:34.240 --> 00:20:36.350 align:start position:0% a governance token it's highly likely that's<00:20:35.240> it's<00:20:35.400> probably<00:20:35.679> more<00:20:35.880> likely<00:20:36.200> that 00:20:36.350 --> 00:20:36.360 align:start position:0% that's it's probably more likely that 00:20:36.360 --> 00:20:37.950 align:start position:0% that's it's probably more likely that changes<00:20:36.760> in<00:20:36.840> the<00:20:36.960> future<00:20:37.320> then<00:20:37.480> stays<00:20:37.840> the 00:20:37.950 --> 00:20:37.960 align:start position:0% changes in the future then stays the 00:20:37.960 --> 00:20:41.029 align:start position:0% changes in the future then stays the same<00:20:38.200> so<00:20:38.360> I<00:20:38.480> think<00:20:39.120> that<00:20:39.320> is<00:20:39.640> a<00:20:40.400> that<00:20:40.520> is<00:20:40.679> a<00:20:40.840> very 00:20:41.029 --> 00:20:41.039 align:start position:0% same so I think that is a that is a very 00:20:41.039 --> 00:20:42.070 align:start position:0% same so I think that is a that is a very real 00:20:42.070 --> 00:20:42.080 align:start position:0% real 00:20:42.080 --> 00:20:45.310 align:start position:0% real risk<00:20:43.080> uh<00:20:43.320> have<00:20:43.520> you<00:20:43.679> or<00:20:43.919> others<00:20:44.440> been<00:20:44.720> able<00:20:45.000> to 00:20:45.310 --> 00:20:45.320 align:start position:0% risk uh have you or others been able to 00:20:45.320 --> 00:20:47.950 align:start position:0% risk uh have you or others been able to isolate<00:20:45.840> the<00:20:46.039> decrease<00:20:46.520> in<00:20:46.720> L1<00:20:47.240> execution 00:20:47.950 --> 00:20:47.960 align:start position:0% isolate the decrease in L1 execution 00:20:47.960 --> 00:20:50.669 align:start position:0% isolate the decrease in L1 execution demand<00:20:48.559> due<00:20:48.760> to<00:20:48.919> real<00:20:49.360> transactions<00:20:50.120> from<00:20:50.480> the 00:20:50.669 --> 00:20:50.679 align:start position:0% demand due to real transactions from the 00:20:50.679 --> 00:20:54.029 align:start position:0% demand due to real transactions from the reduction<00:20:51.600> in<00:20:51.840> call<00:20:52.159> data<00:20:52.440> demand<00:20:53.039> will<00:20:53.280> L1 00:20:54.029 --> 00:20:54.039 align:start position:0% reduction in call data demand will L1 00:20:54.039 --> 00:20:56.470 align:start position:0% reduction in call data demand will L1 execution<00:20:54.720> demand<00:20:55.120> go<00:20:55.240> to 00:20:56.470 --> 00:20:56.480 align:start position:0% execution demand go to 00:20:56.480 --> 00:20:59.510 align:start position:0% execution demand go to zero<00:20:57.480> uh<00:20:57.600> so<00:20:57.799> I<00:20:57.880> don't<00:20:58.039> think<00:20:58.240> L1<00:20:59.039> execution 00:20:59.510 --> 00:20:59.520 align:start position:0% zero uh so I don't think L1 execution 00:20:59.520 --> 00:21:01.830 align:start position:0% zero uh so I don't think L1 execution demand<00:20:59.799> will<00:20:59.960> go<00:21:00.080> to<00:21:00.280> zero<00:21:00.880> um<00:21:01.200> so<00:21:01.360> a<00:21:01.480> chart 00:21:01.830 --> 00:21:01.840 align:start position:0% demand will go to zero um so a chart 00:21:01.840 --> 00:21:04.070 align:start position:0% demand will go to zero um so a chart that<00:21:02.440> I<00:21:02.520> didn't<00:21:02.799> include<00:21:03.520> um<00:21:03.679> just<00:21:03.799> because 00:21:04.070 --> 00:21:04.080 align:start position:0% that I didn't include um just because 00:21:04.080 --> 00:21:06.110 align:start position:0% that I didn't include um just because it's<00:21:04.640> it's<00:21:04.760> a<00:21:04.960> very<00:21:05.159> basic<00:21:05.440> chart<00:21:05.720> is<00:21:05.840> that<00:21:06.000> the 00:21:06.110 --> 00:21:06.120 align:start position:0% it's it's a very basic chart is that the 00:21:06.120 --> 00:21:07.750 align:start position:0% it's it's a very basic chart is that the transaction<00:21:06.919> the<00:21:07.000> number<00:21:07.200> of<00:21:07.320> transactions 00:21:07.750 --> 00:21:07.760 align:start position:0% transaction the number of transactions 00:21:07.760 --> 00:21:09.750 align:start position:0% transaction the number of transactions on<00:21:07.919> ethereum<00:21:08.360> has<00:21:08.480> actually<00:21:08.720> not<00:21:08.919> gone<00:21:09.240> down 00:21:09.750 --> 00:21:09.760 align:start position:0% on ethereum has actually not gone down 00:21:09.760 --> 00:21:11.830 align:start position:0% on ethereum has actually not gone down and<00:21:09.880> the<00:21:10.000> amount<00:21:10.200> of<00:21:10.440> gas<00:21:10.840> in<00:21:10.960> terms<00:21:11.200> of<00:21:11.520> gas 00:21:11.830 --> 00:21:11.840 align:start position:0% and the amount of gas in terms of gas 00:21:11.840 --> 00:21:14.230 align:start position:0% and the amount of gas in terms of gas consumed<00:21:12.440> has<00:21:12.600> not<00:21:12.760> gone<00:21:13.039> down<00:21:13.360> it's<00:21:13.559> that<00:21:14.080> the 00:21:14.230 --> 00:21:14.240 align:start position:0% consumed has not gone down it's that the 00:21:14.240 --> 00:21:16.549 align:start position:0% consumed has not gone down it's that the nature<00:21:14.600> of<00:21:14.720> the<00:21:14.840> transactions<00:21:15.480> have<00:21:15.640> changed 00:21:16.549 --> 00:21:16.559 align:start position:0% nature of the transactions have changed 00:21:16.559 --> 00:21:19.510 align:start position:0% nature of the transactions have changed so<00:21:17.559> um<00:21:17.760> historically<00:21:18.679> the<00:21:18.840> transactions<00:21:19.320> on 00:21:19.510 --> 00:21:19.520 align:start position:0% so um historically the transactions on 00:21:19.520 --> 00:21:21.870 align:start position:0% so um historically the transactions on ethereum<00:21:20.080> had<00:21:20.240> been<00:21:20.840> uh<00:21:21.000> transactions<00:21:21.600> that 00:21:21.870 --> 00:21:21.880 align:start position:0% ethereum had been uh transactions that 00:21:21.880 --> 00:21:24.590 align:start position:0% ethereum had been uh transactions that had<00:21:22.600> a<00:21:22.720> lot<00:21:22.880> more<00:21:23.200> right<00:21:23.640> conflict<00:21:24.120> or<00:21:24.320> right 00:21:24.590 --> 00:21:24.600 align:start position:0% had a lot more right conflict or right 00:21:24.600 --> 00:21:26.870 align:start position:0% had a lot more right conflict or right contention<00:21:25.480> and<00:21:25.640> right<00:21:25.880> contention<00:21:26.400> leads<00:21:26.679> to 00:21:26.870 --> 00:21:26.880 align:start position:0% contention and right contention leads to 00:21:26.880 --> 00:21:29.549 align:start position:0% contention and right contention leads to higher<00:21:27.120> fees<00:21:27.520> because<00:21:27.799> people<00:21:28.000> want<00:21:28.159> to<00:21:28.919> um 00:21:29.549 --> 00:21:29.559 align:start position:0% higher fees because people want to um 00:21:29.559 --> 00:21:32.190 align:start position:0% higher fees because people want to um people<00:21:30.039> tend<00:21:30.240> to<00:21:30.840> uh<00:21:30.960> be<00:21:31.120> rushed<00:21:31.559> in<00:21:31.679> terms<00:21:31.919> of 00:21:32.190 --> 00:21:32.200 align:start position:0% people tend to uh be rushed in terms of 00:21:32.200 --> 00:21:33.750 align:start position:0% people tend to uh be rushed in terms of those<00:21:32.400> types<00:21:32.600> of<00:21:32.720> transactions<00:21:33.440> so<00:21:33.600> for 00:21:33.750 --> 00:21:33.760 align:start position:0% those types of transactions so for 00:21:33.760 --> 00:21:36.190 align:start position:0% those types of transactions so for example<00:21:34.159> like<00:21:34.320> if<00:21:34.440> people<00:21:34.640> are<00:21:35.000> trading<00:21:36.000> uh 00:21:36.190 --> 00:21:36.200 align:start position:0% example like if people are trading uh 00:21:36.200 --> 00:21:38.430 align:start position:0% example like if people are trading uh various<00:21:36.559> forms<00:21:36.799> of<00:21:37.200> assets<00:21:37.679> there's<00:21:37.840> a<00:21:38.120> high 00:21:38.430 --> 00:21:38.440 align:start position:0% various forms of assets there's a high 00:21:38.440 --> 00:21:40.470 align:start position:0% various forms of assets there's a high degree<00:21:39.000> of<00:21:39.480> urgency<00:21:40.120> that<00:21:40.279> those 00:21:40.470 --> 00:21:40.480 align:start position:0% degree of urgency that those 00:21:40.480 --> 00:21:45.710 align:start position:0% degree of urgency that those transactions<00:21:41.520> land<00:21:42.600> um<00:21:43.600> um<00:21:44.279> but<00:21:45.120> most<00:21:45.360> of<00:21:45.520> that 00:21:45.710 --> 00:21:45.720 align:start position:0% transactions land um um but most of that 00:21:45.720 --> 00:21:47.789 align:start position:0% transactions land um um but most of that activity<00:21:46.559> at<00:21:46.640> the<00:21:46.760> moment<00:21:47.039> at<00:21:47.159> least<00:21:47.400> has<00:21:47.679> has 00:21:47.789 --> 00:21:47.799 align:start position:0% activity at the moment at least has has 00:21:47.799 --> 00:21:50.950 align:start position:0% activity at the moment at least has has shifted<00:21:48.120> to<00:21:48.240> the<00:21:48.760> l2s<00:21:49.760> perfect<00:21:50.240> and<00:21:50.520> how<00:21:50.679> to 00:21:50.950 --> 00:21:50.960 align:start position:0% shifted to the l2s perfect and how to 00:21:50.960 --> 00:21:53.630 align:start position:0% shifted to the l2s perfect and how to prevent<00:21:51.559> a<00:21:51.720> single<00:21:52.080> L2<00:21:52.679> from<00:21:52.880> eating<00:21:53.240> up<00:21:53.480> all 00:21:53.630 --> 00:21:53.640 align:start position:0% prevent a single L2 from eating up all 00:21:53.640 --> 00:21:57.230 align:start position:0% prevent a single L2 from eating up all the<00:21:53.880> space<00:21:54.200> or<00:21:54.480> Spotlight<00:21:55.360> AKA<00:21:55.919> base<00:21:56.720> not<00:21:57.000> from 00:21:57.230 --> 00:21:57.240 align:start position:0% the space or Spotlight AKA base not from 00:21:57.240 --> 00:21:59.269 align:start position:0% the space or Spotlight AKA base not from the<00:21:57.400> tech<00:21:57.840> perspective<00:21:58.640> but<00:21:58.840> from<00:21:59.120> the 00:21:59.269 --> 00:21:59.279 align:start position:0% the tech perspective but from the 00:21:59.279 --> 00:22:01.909 align:start position:0% the tech perspective but from the marketing<00:22:00.039> public 00:22:01.909 --> 00:22:01.919 align:start position:0% marketing public 00:22:01.919 --> 00:22:05.029 align:start position:0% marketing public perspective<00:22:02.919> uh<00:22:03.159> yeah<00:22:03.480> so<00:22:04.480> I<00:22:04.600> don't 00:22:05.029 --> 00:22:05.039 align:start position:0% perspective uh yeah so I don't 00:22:05.039 --> 00:22:07.630 align:start position:0% perspective uh yeah so I don't necessarily<00:22:05.559> want<00:22:05.679> to<00:22:05.919> call<00:22:06.159> out<00:22:06.360> a<00:22:06.559> single<00:22:06.799> L2 00:22:07.630 --> 00:22:07.640 align:start position:0% necessarily want to call out a single L2 00:22:07.640 --> 00:22:10.350 align:start position:0% necessarily want to call out a single L2 um<00:22:07.799> but<00:22:07.880> I<00:22:08.200> think<00:22:09.200> uh<00:22:09.360> the<00:22:09.520> hypothetical 00:22:10.350 --> 00:22:10.360 align:start position:0% um but I think uh the hypothetical 00:22:10.360 --> 00:22:13.230 align:start position:0% um but I think uh the hypothetical scenario<00:22:11.360> of<00:22:11.520> an<00:22:11.679> L2<00:22:12.200> becoming<00:22:12.720> the<00:22:12.880> dominant 00:22:13.230 --> 00:22:13.240 align:start position:0% scenario of an L2 becoming the dominant 00:22:13.240 --> 00:22:15.590 align:start position:0% scenario of an L2 becoming the dominant L2<00:22:13.600> where<00:22:13.720> 80<00:22:14.039> to<00:22:14.159> 90%<00:22:14.760> of<00:22:14.880> the<00:22:15.039> economic 00:22:15.590 --> 00:22:15.600 align:start position:0% L2 where 80 to 90% of the economic 00:22:15.600 --> 00:22:17.510 align:start position:0% L2 where 80 to 90% of the economic activity<00:22:15.960> flows<00:22:16.320> through<00:22:16.600> there<00:22:16.840> I<00:22:16.960> think<00:22:17.440> I 00:22:17.510 --> 00:22:17.520 align:start position:0% activity flows through there I think I 00:22:17.520 --> 00:22:20.110 align:start position:0% activity flows through there I think I think<00:22:17.679> that's<00:22:17.799> a<00:22:17.919> very<00:22:18.120> real<00:22:18.440> risk<00:22:19.360> um<00:22:19.919> there 00:22:20.110 --> 00:22:20.120 align:start position:0% think that's a very real risk um there 00:22:20.120 --> 00:22:22.990 align:start position:0% think that's a very real risk um there hasn't<00:22:20.520> NE<00:22:21.159> I<00:22:21.240> don't<00:22:21.520> believe<00:22:21.919> there's<00:22:22.200> been 00:22:22.990 --> 00:22:23.000 align:start position:0% hasn't NE I don't believe there's been 00:22:23.000 --> 00:22:25.190 align:start position:0% hasn't NE I don't believe there's been very<00:22:23.279> many<00:22:23.679> payment<00:22:24.120> networks<00:22:24.559> in<00:22:24.679> the<00:22:24.880> past 00:22:25.190 --> 00:22:25.200 align:start position:0% very many payment networks in the past 00:22:25.200 --> 00:22:27.710 align:start position:0% very many payment networks in the past where<00:22:25.360> you<00:22:25.520> haven't<00:22:25.799> seen<00:22:26.320> a<00:22:26.480> monopoly<00:22:27.120> or 00:22:27.710 --> 00:22:27.720 align:start position:0% where you haven't seen a monopoly or 00:22:27.720 --> 00:22:29.990 align:start position:0% where you haven't seen a monopoly or oligopoly<00:22:28.520> type<00:22:28.679> of<00:22:28.760> structure<00:22:29.240> just<00:22:29.440> due<00:22:29.679> to 00:22:29.990 --> 00:22:30.000 align:start position:0% oligopoly type of structure just due to 00:22:30.000 --> 00:22:33.190 align:start position:0% oligopoly type of structure just due to the<00:22:30.159> nature<00:22:30.440> of<00:22:30.720> network<00:22:31.200> effects<00:22:32.080> in<00:22:33.080> in 00:22:33.190 --> 00:22:33.200 align:start position:0% the nature of network effects in in 00:22:33.200 --> 00:22:34.990 align:start position:0% the nature of network effects in in these<00:22:33.400> types<00:22:33.559> of<00:22:33.720> financial<00:22:34.159> systems<00:22:34.640> so<00:22:34.919> I 00:22:34.990 --> 00:22:35.000 align:start position:0% these types of financial systems so I 00:22:35.000 --> 00:22:36.710 align:start position:0% these types of financial systems so I think<00:22:35.200> that<00:22:35.360> risk<00:22:35.600> is<00:22:35.799> very 00:22:36.710 --> 00:22:36.720 align:start position:0% think that risk is very 00:22:36.720 --> 00:22:39.630 align:start position:0% think that risk is very real<00:22:37.720> perfect<00:22:38.200> and<00:22:38.559> I<00:22:38.640> think<00:22:38.840> this<00:22:38.960> is<00:22:39.080> a<00:22:39.279> great 00:22:39.630 --> 00:22:39.640 align:start position:0% real perfect and I think this is a great 00:22:39.640 --> 00:22:41.950 align:start position:0% real perfect and I think this is a great comment<00:22:40.159> to<00:22:40.520> close<00:22:40.840> off<00:22:41.120> the<00:22:41.320> speech<00:22:41.799> thank 00:22:41.950 --> 00:22:41.960 align:start position:0% comment to close off the speech thank 00:22:41.960 --> 00:22:45.279 align:start position:0% comment to close off the speech thank you<00:22:42.080> so<00:22:42.279> much