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Tim RobinsonWhat is Ethereum
Ethereum is the settlement layer for global finance. It is the only blockchain that can be this. If you're surprised by the above statement, this article is for you. Other chains will still host many useful apps, and play niche roles, but the global financial system will run on Ethereum.What is a settlement layer?Rather than being a chain where consumers go to use apps and trade with their friends, a settlement layer is a chain that other chains build upon. It specializes in 5 things:Sec...
Tim RobinsonWhy Bitcoin Lightning Sucks
Bitcoin Lightning is mostly a meme used as a retort to people who say "Bitcoin doesn't scale", it's not a long term solution to anything. It's sad there are so few technically competent people left in the Bitcoin community to point this out, but its true. If Bitcoin had a hard fork to make ZK Rollups possible it would completely obsolete the lightning network (and be good for Bitcoins security budget!).What is the lightning network and how does it work?It's a state channel...
Tim RobinsonHow do we moderate Decentralized Social Media?
Moderation is the number one concern I've heard about DeSo. It's incredibly important as almost every protocol and platform on the internet has issues with spam. Moderating DeSo requires a completely different mindset compared to traditional social media. Here are three of my favorite options, in increasing complexity:Friends-only social mediaOpt-in moderatorsReputation SystemsFriends-only social mediaBy default your app could only show you posts from friends and/or friends of frien...
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Tim RobinsonWhat is Ethereum
Ethereum is the settlement layer for global finance. It is the only blockchain that can be this. If you're surprised by the above statement, this article is for you. Other chains will still host many useful apps, and play niche roles, but the global financial system will run on Ethereum.What is a settlement layer?Rather than being a chain where consumers go to use apps and trade with their friends, a settlement layer is a chain that other chains build upon. It specializes in 5 things:Sec...
Tim RobinsonWhy Bitcoin Lightning Sucks
Bitcoin Lightning is mostly a meme used as a retort to people who say "Bitcoin doesn't scale", it's not a long term solution to anything. It's sad there are so few technically competent people left in the Bitcoin community to point this out, but its true. If Bitcoin had a hard fork to make ZK Rollups possible it would completely obsolete the lightning network (and be good for Bitcoins security budget!).What is the lightning network and how does it work?It's a state channel...
Tim RobinsonHow do we moderate Decentralized Social Media?
Moderation is the number one concern I've heard about DeSo. It's incredibly important as almost every protocol and platform on the internet has issues with spam. Moderating DeSo requires a completely different mindset compared to traditional social media. Here are three of my favorite options, in increasing complexity:Friends-only social mediaOpt-in moderatorsReputation SystemsFriends-only social mediaBy default your app could only show you posts from friends and/or friends of frien...
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Something peculiar came out of the collapse of FTX that I have yet to see anyone talking about. Alameda created an investment glitch that allowed them to invest way more cash than they had available.
I noticed this when REN project reported they had lost their treasury, because it was all on FTX.
Why was it all on FTX? Earlier in the year Alameda invested in REN Project, giving them a large sum of money and enticing them to build on Solana. As part of the terms of this investment they were required to keep the companies treasury on FTX.
As we now know[0], Alameda had an infinite line of credit with FTX, they could borrow as much as they like and FTX would give it to them out of customer funds.
This allowed Alameda to re-borrow the cash they had just invested in REN, and invest it in another project!
They can cycle this infinitely, at least until the whole thing collapses and everyone wonders where the money went.
It's very similar to a Ponzi scheme, with a few new twists, and it's surprising no one caught on earlier that they were investing far more than they should have had available (everyone thought they were great traders).
Can we prevent this in the future? Yes. Use DeFi! Use centralized exchanges like a public bathroom: deposit, make your trade, and get out. Don't linger and set up shop there.
There's no reason to trust an opaque centralized institution when DeFi exists.
Something peculiar came out of the collapse of FTX that I have yet to see anyone talking about. Alameda created an investment glitch that allowed them to invest way more cash than they had available.
I noticed this when REN project reported they had lost their treasury, because it was all on FTX.
Why was it all on FTX? Earlier in the year Alameda invested in REN Project, giving them a large sum of money and enticing them to build on Solana. As part of the terms of this investment they were required to keep the companies treasury on FTX.
As we now know[0], Alameda had an infinite line of credit with FTX, they could borrow as much as they like and FTX would give it to them out of customer funds.
This allowed Alameda to re-borrow the cash they had just invested in REN, and invest it in another project!
They can cycle this infinitely, at least until the whole thing collapses and everyone wonders where the money went.
It's very similar to a Ponzi scheme, with a few new twists, and it's surprising no one caught on earlier that they were investing far more than they should have had available (everyone thought they were great traders).
Can we prevent this in the future? Yes. Use DeFi! Use centralized exchanges like a public bathroom: deposit, make your trade, and get out. Don't linger and set up shop there.
There's no reason to trust an opaque centralized institution when DeFi exists.
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