1/19) We are less than a day away from the long-awaited Ethereum merge!
Turning ETH into the best SoV & money the world has ever seen
Objectively putting BTC's money & SoV qualities to shame
ETH will be more scarce, secure, decentralized, usable & censorship resistant than BTC
Turning ETH into the best SoV & money the world has ever seen
Objectively putting BTC's money & SoV qualities to shame
ETH will be more scarce, secure, decentralized, usable & censorship resistant than BTC
2/19) BTC has become the worst form of money over time
Without capacity, BTC cannot serve as a medium of exchange
Without long-term security, BTC is a terrible SoV
Without programmability, BTC cannot support DeFi
These are all critical prerequisites for money that BTC lacks!
Without capacity, BTC cannot serve as a medium of exchange
Without long-term security, BTC is a terrible SoV
Without programmability, BTC cannot support DeFi
These are all critical prerequisites for money that BTC lacks!
3/19) ETH, on the other hand, fulfills the vision of Bitcoin better than BTC ever could
With negative supply issuance, ETH is more scarce
With minimum viable inflation, ETH has a viable long-term security model
With programmability, ETH has become the epicenter for DeFi!
With negative supply issuance, ETH is more scarce
With minimum viable inflation, ETH has a viable long-term security model
With programmability, ETH has become the epicenter for DeFi!
4/19) ETH's PoS is also far more inclusive compared to BTC's PoW:
To run a profitable mining operation requires millions of dollars of investment
While often also requiring the right political connections for low electricity contracts
Competition centralizes hashing power!
To run a profitable mining operation requires millions of dollars of investment
While often also requiring the right political connections for low electricity contracts
Competition centralizes hashing power!
5/19) There are no more than 3 foundries worldwide that can even produce the most cutting-edge ASIC chips!
This means that PoW has the problem of economies of scale but is also centralized in chip production
PoW is far more guilty of making the rich richer compared to PoS!
This means that PoW has the problem of economies of scale but is also centralized in chip production
PoW is far more guilty of making the rich richer compared to PoS!
6/19) In PoS on the other hand:
Anyone can participate for as little as 0.01 ETH ($16) through decentralized services such as Rocket Pool
Everyone with 32 ETH even gets exactly the same rate of return!
There are no economies of scale or centralized bottlenecks in production
Anyone can participate for as little as 0.01 ETH ($16) through decentralized services such as Rocket Pool
Everyone with 32 ETH even gets exactly the same rate of return!
There are no economies of scale or centralized bottlenecks in production
7/19) PoS is also completely permissionless
As ETH can be purchased from one of the many DEX's (Decentralized Exchanges) on ETH today
The irony is that DEX's were conceptualized very early in Bitcoins history
A goal that BTC stopped pursuing, yet ETH has now fully achieved!
As ETH can be purchased from one of the many DEX's (Decentralized Exchanges) on ETH today
The irony is that DEX's were conceptualized very early in Bitcoins history
A goal that BTC stopped pursuing, yet ETH has now fully achieved!
8/19) This actually makes PoS far more decentralized
Another way to describe decentralization is the distribution of power
Exactly because ETH is more inclusive, it distributes power over a wider group of people
Making the network more decentralized by widening participation!
Another way to describe decentralization is the distribution of power
Exactly because ETH is more inclusive, it distributes power over a wider group of people
Making the network more decentralized by widening participation!
9/19) PoS is also far more secure compared to PoW
By also evaluating security through the lens of "Cost To Attack"
If we hypothetically compare two 100B blockchain networks, one PoS, the other PoW:
Assuming a similar block reward & using historical BTC PoW numbers
By also evaluating security through the lens of "Cost To Attack"
If we hypothetically compare two 100B blockchain networks, one PoS, the other PoW:
Assuming a similar block reward & using historical BTC PoW numbers
10/19) In the case of PoW we can say that about 2B worth of hashing power is securing the network, in this example
Therefore to attack such as PoW network would cost just over 1B
In the case of PoS because the market capitalization itself is used as collateral for incentives:
Therefore to attack such as PoW network would cost just over 1B
In the case of PoS because the market capitalization itself is used as collateral for incentives:
11/19) It would cost more than 33B to attack the PoS network!
That means PoW under these assumptions has a CTA of 1B while PoS has a CTA of 33B! (Cost To Attack)
This is a massive difference in terms of security!
While this is also only the initial Cost To Attack
That means PoW under these assumptions has a CTA of 1B while PoS has a CTA of 33B! (Cost To Attack)
This is a massive difference in terms of security!
While this is also only the initial Cost To Attack
12/19) As in the case of PoW, the only option left as a follow-up to such an attack is a mining algo switch
Which would destroy confidence in the mining industry
An attacker could also have CPU & GPU waiting for a second attack
A algo switch can also only be pulled off once!
Which would destroy confidence in the mining industry
An attacker could also have CPU & GPU waiting for a second attack
A algo switch can also only be pulled off once!
13/19) This at most; would cost another 1B
However, after this, there will be no more options left
The PoW chain at this point is effectively defeated
In the case of PoS, an attacker would have their stake slashed
This can be repeated until the attacker runs out of funds!
However, after this, there will be no more options left
The PoW chain at this point is effectively defeated
In the case of PoS, an attacker would have their stake slashed
This can be repeated until the attacker runs out of funds!
14/19) This makes ETH's PoS almost impossible to completely defeat
Making it far more anti-fragile than BTC's PoW could ever be
There is also nothing special about PoW's physicality that exempts it from such calculations
From an attacker's perspective, it makes no difference:
Making it far more anti-fragile than BTC's PoW could ever be
There is also nothing special about PoW's physicality that exempts it from such calculations
From an attacker's perspective, it makes no difference:
15/19) Whether they spend 1B on mining firm equity or 1B on staking firm equity
At that level of sophistication, it can just be broken down into a clear Cost To Attack
It was always the prerogative of blockchains to become so large that no single party could afford to attack it
At that level of sophistication, it can just be broken down into a clear Cost To Attack
It was always the prerogative of blockchains to become so large that no single party could afford to attack it
16/19) That is what lies at the core of security through decentralization
ETH is far better positioned to make that dream a reality
It has proven that utility is critical to creating the most sound form of money
As it is utility that pays for security & decentralization!
ETH is far better positioned to make that dream a reality
It has proven that utility is critical to creating the most sound form of money
As it is utility that pays for security & decentralization!
17/19) It is a shame that BTC rejected its utilitarian roots during the block size debates
The title of the whitepaper is Peer to Peer Electronic Cash for god's sake!
Yet this is where we stand, with ETH & PoS fulfilling the vision that BTC & PoW never could in a free market
The title of the whitepaper is Peer to Peer Electronic Cash for god's sake!
Yet this is where we stand, with ETH & PoS fulfilling the vision that BTC & PoW never could in a free market
18/19) As BTC is not exempt from competition
It cannot fulfill its vision with a broken long-term security model
As it relies on fees for security, fees it is unable to gather without utility
The only option left will be to increase the supply of BTC to pay for security
It cannot fulfill its vision with a broken long-term security model
As it relies on fees for security, fees it is unable to gather without utility
The only option left will be to increase the supply of BTC to pay for security
19/19) Destroying one of the last pillars propping up BTC
Too many this is obvious, as the rise in competitors was in 2017 after BTC rejected utility
The children of Bitcoin now carry on the torch of freedom for humanity
This makes the Merge one of Bitcoin's greatest triumphs!
Too many this is obvious, as the rise in competitors was in 2017 after BTC rejected utility
The children of Bitcoin now carry on the torch of freedom for humanity
This makes the Merge one of Bitcoin's greatest triumphs!
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