chandanCrypto Applications Product Market Fit Analysis
In Crypto, there are a lot of applications that haven’t found product-market fit. But there is also a handful of applications that have a product market fit and are growing stably Here I will just explain my thoughts on which applications have Product-Market-Fit. Storage of Value (an asset that maintains or increases its value rather than depreciating)Bitcoin is the dominant product-market fit for this, followed by ETH. However, BTC has questionable long-term sustainability properties. Thanks...
chandanHow to Protect Your Crypto Wallet 95% of the Time
Always keep your private key and seed phrase offline, such as by writing them down on paper and storing them in a secure location that only you have access to. Do not save them on any device or cloud storage, as these can potentially be hacked and your wallet compromised.To further increase security, you can consider leaving out a few words from your seed phrase when writing it down, and memorizing or securely storing these words separately. This way, even if someone gets hold of the paper wi...
chandanAre Layer 2s Superior to Alt-1 for Scaling Capabilities?
Traditional monolithic execution layers rely on 1000s of block producers and non-producing full nodes, requiring a majority of them to act honestly. In contrast, layer 2s only require a single honest "Sequencer" to guarantee network integrity. This asymmetric trade-off suggests that layer 2s will consistently deliver high throughput and significant performance advantages, even when the same hardware is employed by both layer 1 and layer 2. This is due to the inefficiencies of synchronization ...
Researching Layer 1/2s, DeFi, and modular ecosystems.
chandanCrypto Applications Product Market Fit Analysis
In Crypto, there are a lot of applications that haven’t found product-market fit. But there is also a handful of applications that have a product market fit and are growing stably Here I will just explain my thoughts on which applications have Product-Market-Fit. Storage of Value (an asset that maintains or increases its value rather than depreciating)Bitcoin is the dominant product-market fit for this, followed by ETH. However, BTC has questionable long-term sustainability properties. Thanks...
chandanHow to Protect Your Crypto Wallet 95% of the Time
Always keep your private key and seed phrase offline, such as by writing them down on paper and storing them in a secure location that only you have access to. Do not save them on any device or cloud storage, as these can potentially be hacked and your wallet compromised.To further increase security, you can consider leaving out a few words from your seed phrase when writing it down, and memorizing or securely storing these words separately. This way, even if someone gets hold of the paper wi...
chandanAre Layer 2s Superior to Alt-1 for Scaling Capabilities?
Traditional monolithic execution layers rely on 1000s of block producers and non-producing full nodes, requiring a majority of them to act honestly. In contrast, layer 2s only require a single honest "Sequencer" to guarantee network integrity. This asymmetric trade-off suggests that layer 2s will consistently deliver high throughput and significant performance advantages, even when the same hardware is employed by both layer 1 and layer 2. This is due to the inefficiencies of synchronization ...
Researching Layer 1/2s, DeFi, and modular ecosystems.
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The main reason for this series is to keep track of what I'm reading and evaluate its usefulness at the end.
First, let's take a look at what I wrote this week:
https://mirror.xyz/iamchandan.eth/mSjSgyBGaRJbBuc2tsjWdaG5LWS-RW_rBUhSQNYzytM
https://mirror.xyz/iamchandan.eth/19FQR98OzGaNGomEIS3Zhy-we0NJgi9Wfbq_2D-aP9k
https://mirror.xyz/iamchandan.eth/C6yYM5bNBYhonjICenArXCWrnYfIqQKFjz1w_hhotTw
One significant reason why transactions on Solana are failing is because the block builders, during periods of high demand, drop transactions randomly since they can't process them all. Dropped transactions are lost because there's no memo pool to add them, leading users to send the same transaction multiple times to make it go through.
Financial nihilism refers to the idea that people have lost hope in the American dream, spending most of their time gambling in hopes of gaining more wealth. Social media exacerbates this trend by showcasing wealth and promising unrealistic profits. The rise of cryptocurrencies, including meme coins and NFTs, has further facilitated gambling.
https://twitter.com/travis_kling/status/1764696621097378299?s=46
Relative valuation has become prevalent due to the lack of clear metrics to value projects, stemming from factors like airdrops and token framing. Travis Kling hopes that end-user adoption will occur in the next cycle. Bitcoin is considered the collateral asset of the world.
When comparing Layer 1 networks in terms of the number of wallets, daily transactions, active addresses, and total DApps, it's important to note that these metrics don't hold much significance because it's inexpensive to spam most Layer 1 networks except Ethereum. Defi activity is mostly non-existent in many alternative Layer 1 networks except Solana and BNB; many are becoming zombie chains.
AA contracts haven't received enough attention from users because they are three times more expensive to transact with than normal EOA. AA ERC 4337 has enabled the creation of applications like Farcastar and Fantasy, abstracting web3 features for users. It has also facilitated the creation of user-friendly non-custodial wallets by Wallet as a Service providers like Biconomy, Tweed, Thirdweb, and Alchemy.
https://research.despread.io/aa-2023-2/?ref=test-newsletter
https://daimo.com/blog/bulk?ref=research.despread.io
The Eigenlayer ecosystem and its key problems are discussed in the following link.
https://mirror.xyz/0xsuperscrypt.eth/FVryajewi1mCyFynDec9MRPCPsrfLYMzbgLbyu1tLlM
An Incomplete Guide to AVS is provided in this link.
https://medium.com/iosg-ventures/an-incomplete-guide-to-avs-855e8688173e
A TLDR on meme coins space is provided here.
https://mirror.xyz/1kx.eth/RgbEQvn1vgfzrE6GDTwk3rrNYQmyuwVgejtR0-6okRc
https://a16zcrypto.com/posts/article/crypto-startup-accelerator-csx-spring-2024-cohort/
The journey and growth of safe smart account contracts is detailed in this article.
https://mirror.xyz/1kx.eth/AnT3_N8CnHQN38winhJD9xkQq2DBVIzGzW12zcs4nes
Monad, another L1.
Ethereum and Layer 2 solutions limit the growth of the state using gas limits. Maintaining state in RAM allows for faster read and write access, but RAM is significantly more expensive than SSD. Improving faster and cheaper state access is crucial for solving scalability issues.
To reduce the cost of ZK proof generation, building new hardware specifically for ZK proof generation is essential. Several projects are working on such hardware.
Basically, we need a chip with 0.1 mm area dedicated to the compute and all the remaining 99.9 mm for proof generation.
Eip-3074 is key to improving user experience on EVM chains. (You do not need to do 2 transactions for token swapping.)
https://x.com/MikeIppolito_/status/1778130315074056597
https://a16z.com/generative-ai-enterprise-2024/
As LRTs integrate in defi, liquidity becomes the critical factors which determines the success of an LRT.
https://x.com/Kairos_Res/status/1777840098337345734
The main reason for this series is to keep track of what I'm reading and evaluate its usefulness at the end.
First, let's take a look at what I wrote this week:
https://mirror.xyz/iamchandan.eth/mSjSgyBGaRJbBuc2tsjWdaG5LWS-RW_rBUhSQNYzytM
https://mirror.xyz/iamchandan.eth/19FQR98OzGaNGomEIS3Zhy-we0NJgi9Wfbq_2D-aP9k
https://mirror.xyz/iamchandan.eth/C6yYM5bNBYhonjICenArXCWrnYfIqQKFjz1w_hhotTw
One significant reason why transactions on Solana are failing is because the block builders, during periods of high demand, drop transactions randomly since they can't process them all. Dropped transactions are lost because there's no memo pool to add them, leading users to send the same transaction multiple times to make it go through.
Financial nihilism refers to the idea that people have lost hope in the American dream, spending most of their time gambling in hopes of gaining more wealth. Social media exacerbates this trend by showcasing wealth and promising unrealistic profits. The rise of cryptocurrencies, including meme coins and NFTs, has further facilitated gambling.
https://twitter.com/travis_kling/status/1764696621097378299?s=46
Relative valuation has become prevalent due to the lack of clear metrics to value projects, stemming from factors like airdrops and token framing. Travis Kling hopes that end-user adoption will occur in the next cycle. Bitcoin is considered the collateral asset of the world.
When comparing Layer 1 networks in terms of the number of wallets, daily transactions, active addresses, and total DApps, it's important to note that these metrics don't hold much significance because it's inexpensive to spam most Layer 1 networks except Ethereum. Defi activity is mostly non-existent in many alternative Layer 1 networks except Solana and BNB; many are becoming zombie chains.
AA contracts haven't received enough attention from users because they are three times more expensive to transact with than normal EOA. AA ERC 4337 has enabled the creation of applications like Farcastar and Fantasy, abstracting web3 features for users. It has also facilitated the creation of user-friendly non-custodial wallets by Wallet as a Service providers like Biconomy, Tweed, Thirdweb, and Alchemy.
https://research.despread.io/aa-2023-2/?ref=test-newsletter
https://daimo.com/blog/bulk?ref=research.despread.io
The Eigenlayer ecosystem and its key problems are discussed in the following link.
https://mirror.xyz/0xsuperscrypt.eth/FVryajewi1mCyFynDec9MRPCPsrfLYMzbgLbyu1tLlM
An Incomplete Guide to AVS is provided in this link.
https://medium.com/iosg-ventures/an-incomplete-guide-to-avs-855e8688173e
A TLDR on meme coins space is provided here.
https://mirror.xyz/1kx.eth/RgbEQvn1vgfzrE6GDTwk3rrNYQmyuwVgejtR0-6okRc
https://a16zcrypto.com/posts/article/crypto-startup-accelerator-csx-spring-2024-cohort/
The journey and growth of safe smart account contracts is detailed in this article.
https://mirror.xyz/1kx.eth/AnT3_N8CnHQN38winhJD9xkQq2DBVIzGzW12zcs4nes
Monad, another L1.
Ethereum and Layer 2 solutions limit the growth of the state using gas limits. Maintaining state in RAM allows for faster read and write access, but RAM is significantly more expensive than SSD. Improving faster and cheaper state access is crucial for solving scalability issues.
To reduce the cost of ZK proof generation, building new hardware specifically for ZK proof generation is essential. Several projects are working on such hardware.
Basically, we need a chip with 0.1 mm area dedicated to the compute and all the remaining 99.9 mm for proof generation.
Eip-3074 is key to improving user experience on EVM chains. (You do not need to do 2 transactions for token swapping.)
https://x.com/MikeIppolito_/status/1778130315074056597
https://a16z.com/generative-ai-enterprise-2024/
As LRTs integrate in defi, liquidity becomes the critical factors which determines the success of an LRT.
https://x.com/Kairos_Res/status/1777840098337345734
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