Section 8. ETH, Layers, and Bridges - Transcripts

section eight IV layers and bridges before you start this section,

I want you to stop reading, go to a mirror and repeat after me. It isn't T. B. I's job to hype my project onto

his top platforms list. If we didn't get

written up this year, there's always next year or Mazzari's ongoing research or

we will take this as a learning opportunity that in one single idiots mind

we either weren't worth covering yet or more likely it's simply not possible to cover every single

project that has exploded in the industry's largest ever

growth year. Even in

concise

Subsections of a 150 page report, it's not my fault. It's not my fault. Weep cathartically now that that's out of the way we have a lot to cover. Starting with the core Blockchain outside of Bitcoin ethereum Section 8.1 Q three earnings report. I

loved bank losses. Q three

update on ethereum. It's

so freaking cool that we can produce

earnings reports for any crypto community without the need for any central corporate investor relations team. And we can do it over any arbitrary time period and updated in real time. We're talking about a 1000 x improvement in investor information symmetry here. And it's pretty fun to write about ethereum financial performance. Now to e I p 1559 went live in early august London hard fork restructuring the networks, fee market and burning gas

fees to the benefit

Of all stakeholders in the process over $1.3 billion dollars was burned in the half quarter following the update, which helps make ethereum look more like a high growth tech stocks to more traditional investors, how would you value a company with this growth profile? The Summers N. F. T. Mania pushed the ethereum network to its breaking point even as more on chain

Capacity migrated to ethereum is newly launched. Layer 2's optimistic ethereum

launched its alpha in july and Arbitron ones may net launched in august As of this writing, there are now $330 million dollars locked in optimism uni swap in synthetics,

2.7 billion

dollars locked in arbitral Uni, sushi Reddit and $5.1 billion locked in polygon abe pollin market. The central land defy llama helps track all this locked value in real time and that's before factoring in throughput that migrated to

Dy DX Zk rollup chain built on stark where where liquidity sits around $1 billion dollars and

Volumes at one

eclipsed coin bases. As bank, let's summarize there's more value locked in defied

than the market cap of

most banks.

Billions of dollars were burned in ei P 1559 Interoperable layer

twos have seen adoption explode and emerged to ethereum is proof of stake Blockchain is in its final stages which could further

reward each holders with staking rewards and onboard

new institutional investors who may have otherwise been hesitant to invest given their E. S. G. Mandates slash mining concerns.

Not bad for a year's work. There's no obvious headwind in sight though, That can always

change rapidly in a risk off

environment given

kryptos reflectivity or if to delays or stalls enroll up adoption continue to push capacity to competitors.

Section 8.2 1559 Miners and Emmy

veers.

EIP 1559 helped

stabilize the ethereum

Transaction fee market by implementing at 12.5 per cent base fee shift per block, reducing transaction fee, volatility and redirecting certain minor a tractable value attack vectors between the London hard fork and the mass migration of

Decentralized exchange volumes to layer two. Chainz. You can get a sense for which applications are most likely

To migrate to layer two next. By tracking this burn leaderboard may have dropped more than 80% as

a percentage of network usage since the beginning of the year. EIP 1559 also

took some money out of miners pockets by burning base fees rather than passing them along with the block rewards. That's caused some concern over the merge. We've never seen a switch from a proof of work network to a proof of state

network at this magnitude before. But my money is

on a smooth transition at least

when it comes to minors behaving themselves. Two of

the large chinese mining pools have already shut down following the CCPS mining ban and remaining Western miners. Many have ties to early ethereum investors

seem more likely to switch cleanly to staking versus engaged in a last

minute power play Section 8.3, the merge and liquid

staking ethereum is merged to proof of stake will radically change

the dynamics of the

staking market.

Jpmorgan even projects that staking will be a $40 billion 2025. But for all the benefits

of the switch staking presents an

opportunity cost problem locking assets to participate in network validation, particularly in a year long initial staking period prevents these assets

from being used in other parts of the ecosystem.

It didn't take long for developers

to fix this glitch and create liquid synthetic

representations of all that staked capital. Right now

There's just $10 billion dollars in liquid staked

Assets, a figure which would have to grow 50 x or more if we were to hit Jpmorgan's $40 billion 2025. It's too early to pick a winner in any of these projects. But I'm watching all of them and I'm an early investor in lido and the anchor being able to earn staking rewards while maintaining liquid collateral opens up a number of

possibilities earn yield on your yield coins.

And while I'm long term bullish, I'm a bit worried in the short term about liquidation risks one bull markets don't last forever and a delay in the merge plus a turn in market sentiment to risk off or a rotation out of e to

layer, ones could create bank run scenarios and the other defi protocols that lean on lido ST

E for collateral number

two. Cross chain bridges have been susceptible to a number of hacks. So far the cross chain availability of some of these tokens opens up a

Number of compounding technical risks. # three validator. Downtime early on in the post merge

environment could lead to slashing which would

impact the state tokens collateral backing. I'm not smart enough to handicap these

risks. But as magical as defi is,

I am old enough to know that system

leverage layers of collateral ization, cross chain availability and an unprecedented

Migration of a $500 billion dollar network to a brand new Blockchain creates risks. Section 8.4 to the VM or non E V M.

I believe we'll live in a multi chain world and

ethereum E V

m or ethereum virtual machine will almost certainly be one of the standards that matter on a consolidated basis for decades to come in the next few sections. I'll cover the

other early leaders in the race to dominant layer one or layer zero with dedicated sections for Selena cosmos, ibc polka dot and terra. There's a window of time where this battle for mindshare will play out many

standards, but you

Certainly don't want to be the one bag holding the 5th guy for anything more than a trade.

We may have hundreds or thousands of applications specific roll ups or para chains or zones, but we won't have hundreds of layers, Zero layer one layer two standards as ram sri it's wrote in a recent pro peace, major tech platforms

tend to trend towards duopoly. Perhaps this time will be different but I find it

unlikely that developers, particularly those working in small teams

will choose to integrate with multiple virtual machines outside of the top

2 to 3. Even in the near term, unless they have vastly superior technical capabilities that better suit their application. E. G serums decentralized exchange can only work on Selena

as its central limit order book would be infeasible on ethereum. Even then, many upstarts

will face a choice in the medium term between going the safe route and building on ethereum e v m or settling

new land on a text act that might not survive a bear market Section 8.5

Layer one relative valuations

in broad strokes, ethereum competitors are all taking different

angles towards solving the scalability trill Emma, which holds that block chains can

only prioritize two

out of three priorities between scalability, decentralization and security

fatality. And the other ethereum. Core developers have already rallied around a rollup centric future which

prioritizes the security and decentralization of the base ethereum Blockchain intentionally over its scalability which will be pushed to the other adjacent chains. This model is similar to the

preferred path of polka dot and cosmos Selena, on the other hand, wants to go fast and they're satisfied with

sacrificing some level of decentralization for speed when it comes to the relative valuations of these projects. It helps them to think about the size of their entire economies, their

developer ecosystems, the value they secure, the interoperability and incentives they offer, their value capture

mechanisms

and which technical

trade offs you believe the largest applications will choose to optimize for.

At the beginning of the year. I thought it's lead was

unassailable

now, I'm not so sure even if it has a number of tailwinds going into the new

year decentralization, specifically political decentralization and architectural soundness have become

Secondary properties at best and willfully ignored at the worst. In the mercenary dominant market of 2021,

not every new chain has tossed a centralization aside,

but many have, even if the theory manages to hold off

its largest Nani

VM rivals,

It will leak value to the roll up chains that leans on for scalability. It sits at 60

Market cap dominance among layer ones that will either fall below 50% in 2022 or

its layer to roll up tokens

will eat into its growth. Maybe both. This goes back to my earlier point about cryptocurrencies versus crypto computing platforms, Watkins pointed it out to a crypto economy with multiple

winners would look similar to the world we live in today

With five dominant 1

trillion dollar plus technology companies. Section 8.6 Selena summer never ends.

No project maybe in

Kryptos history

has gotten hotter faster than Selena in 2021, A 100 X rally a legendary challenge from one of its early critical backers, intense VC

interest and exploding infrastructure stack

Sinica and application ecosystem and a Blockchain that is fast, fast, fast. Make it the first legitimate challenger to ethereum is layer one dominance. I will acknowledge the

recency bias but only if you also acknowledge the fact that Selena is really good at the things that theory um doesn't even try to be good at. Selena is

not trying to out the VM and out module arise ethereum it's trying to fit everything it can

into its base chain. The team is executing at a

breakneck pace

that was evident this

month at the breakpoint conference, $100 million dollars in investment

for decentralized social media with

Reddit's co founder, $100 million fund with FDX geared towards Blockchain gaming braves

migration to Salon A as the browser's default Blockchain. Salonica's ascendance as a potentially

dominant platform in crypto gaming and N. F. T. S. Hello FDX integration and the recent $1 million wallet threshold for Solano's browser wallet phantom

it hasn't been a

Panacea. The network had a major 17 hour outage or a 17 hour block. If you asked salon a founder anatoly

that could have led to systematic issues and its fledgling defi

apps had the Salon a price cratered but if we're calling things

fairly this isn't dissimilar to the

early technical challenge. Bitcoin and ethereum faced. We often forget that this network that has

AMassed a 65

billion dollar plus market cap launched fewer than two years ago. Growing pains are inevitable and it's normal for networks to discover catastrophic bugs early

in their life cycles. We'll see if the momentum is sustainable

long term but multi coin crushed the

Short term thesis saying the only black chain protocol that can scale to tens of millions of users within the next 24 months is Selena.

I'm not saying that scaling via Chardin and roll ups can't work. I'm actually

optimistic that both solutions will eventually. But both of these scaling strategies don't really work

today and will create a lot of secondary and tertiary problems that have to be worked through. It's hard to see a world in which impartial

organizations that demand certainty around scalability will get the certainty they

Need in the next 20

four months because there are so many

intertwined components

to scaling ethereum

Section 8.7

polka dots, slow and steady rollout as I discussed with founder

Gavin Wood at this year's May Net Conference 2.0 looks a

lot like polka dots, polka dot builds itself as interoperable chain of chains

Or Layer zero or Meta Protocol. It's designed to connect up to 100 pair of chains for now that will compete to

share security with its core relay chain.

We don't need to get into the technical weeds here. You can read more about how polka dot works

in our pro peace but just know that you should keep

an eye on the protocol this month. In particular as its parent chain auctions are kicking into high gear. Now the first five winners will be on boarded to the network on

December 15 following the previous

dress rehearsal on its test network Osama come at me. KSM mob

polka dot is interesting for a few reasons, not the least of which is that the rollout is slow but steady. In contrast to Selena space and the development team seems to be inverting the two

point oh model rather than having applications flee the layer one to work on

friendlier application specific chains. Its rollout model, polka dot began with a base layer that had limited execution capabilities but generalized security. The protocol outsources most functionality to customizable execution layers or para chains at regular intervals or slot auctions,

which requires contributors to buy and lock up dots on an ongoing

basis and in staking and para chain bond derivatives, e g, those on Akala. And you have the makings of a Ponzi economic masterpiece, polka dot might be moving a bit slower and steadier than the other projects in this

chapter, but I wouldn't bet on someone who co founded ethereum and followed it up with

a 2nd, 50

billion dollar network.

Section 8.8. Cosmos and

ibc opt in if you haven't gotten the gist already.

The interchange thesis has one cosmos was the first

to work on a modular network of Blockchain and ethereum is Rollup

centric scaling plans sealed the deal. The one chain to rule them all thesis is

dead. And cosmos, Inter Blockchain communication protocol or ibc to something polka dot and ethereum don't keeps the protocol entirely open and independent of the cosmos hub and its native token adam the hub is not enshrined

in the cosmos ecosystem. It competes on equal footing with other chains that may seek to serve as a central

router of data and

assets across the cosmos ecosystem in the future, the hubs initial shared security model offers new cosmos Blockchain or zones

the option to anchor to the hub on an opt in

basis like polka dots, relay

Chain or ethereum is beacon chain but 100% optional. Cosmos treats

interoperability as a spectrum. Then zones and their users choose which security risk to take

on from connecting to other zones, fully uncoupled zones might not connect at all. While fully

coupled zones might share a single consensus process.

Erik Vorhees

laid out the multi chain narrative evolution

of the top platforms

nicely

ethereum. Q one

defi decentralized but kind of slow and very expensive. BSC que tu defi not decentralized but quite fast and cheap Selena Q three

defy

kind of decentralized very fast and cheap cosmos slash ibc Q four defi decentralized fast and cheap paradigms, charlie. Noyes puts it even more simply saying if ethereum is a mainframe

computer, Cosmos is a protocol for networking independent servers.

Chain specialization might be the only way to effectively scale on chain activity. But Cosmos doesn't seek a premature answer to the question of how block chains will get module arised and

which markets will be

winner take most. That's one reason it's powered

Two of the top 10 block chains, finance mart chain and terra and may include

dozens of others in the future,

including ethereum. As Dequan put it at main. Net maybe it's a bad idea to stick

all the applications into one global computer. Maybe it just makes sense to have a multi chain future. Speaking of dough

Section 9.9, terraforming la luna.

A layperson may have read the last couple of sections and thought, oh boy, this is too esoteric for me,

I'm aware that I'm letting

others down. See best of the rest in the next section by

not going layer one by layer one ad Infinitum but we're going to move on to one final layer one and then wrap here.

Tara is interesting because it's a layer one platform that

didn't actually

start as such but

rather emerged

terrorists. Application ecosystem has exploded this year.

Its partnership with South Korean payment app Chuy brings terror to 2.3 million users.

Terra's algorithmic stable coin ust has gone from $0 to $7.2 billion in its first year and may soon overtake

make or die in market cap

Synthetic stock application mirror costs 1.5 billion

dollars in locked value.

Just shy of synthetics. 2.1 billion

dollars. Tara's anchor protocol

Has locked nearly as much luna $4 billion Ethereum Lido has $6 billion. The biggest headwinds are known unknowns but it's unclear whether they proved manageable or

catastrophic to the entire terror ecosystem.

Aside from

Dequan in terraform labs, battle with the sec over

mirror and it's synthetic stock tokens. There's the reflexive itty of US tea and its usage of luna as a primary

source of collateral to worry about in a full risk off environment. It's unclear how resilient terra and

USt might be during the spring dump

of luna. UsT nearly became

insolvent as the value of luna fell below the total value of U. S. T. In circulation. It also took a $70 million Stability Reserve at

anchor. A systematically important terror lending protocol. The lender of last resort model works

until it doesn't.

On the other hand, the protocols columbus

five upgrade which,

Among other things connected terror to all other cosmos block chains and Wormhole V two

integration bringing luna and UST to ethereum Selena

and finance smart

chain will de risk some of the reflectivity by extending the protocol to other chains as well as extend US T? S relevance

across the rest of the crypto economy. That's why I remain bullish on Tara's

long term potential. Tara's stable coin potential alone. Give

the project a massive T A. M. Section 8.10.

The best of the rest of the yellow ones. There are simply too many of them. I'm sorry Cardona was in the top 10. So this may seem like a slight but not a single person in my

network recommended I replace

a section on soul

dot luna or adam with a D A. If anything, avalanche was the first

bubble team. Slided for the big

dance but we'll be dropping a big report on them soon. Calderon

has made some moves recently too.

And they got the mooch on the board. Phantom is buying from Andre Crone J, one of last year's Top 10 people to watch for his network on stable coin project. Yearn and coverage from Nansen near has been aggressive, aggressive on the

grants incentives and expanded its ecosystem through

E V M compatible arora side chain etcetera. If you want more ongoing

Coverage of the next 10 layer

1/2 that could break

out and vie for supremacy or at least league status. You can check out more research

on Massari. Pro or sponsored coverage on Massari hub where we're building a marketplace that connects independent analysts and

project in dire need of oxygen. We can't do it alone,

no matter how quickly we're scaling our team, you can read more on avalanche. Al grande definitive E Near Cardigan. Oh phantom. Elrond Cielo Harmony

And BSC through the links tied to the Massari thesis 2020 digital copy. Even then, I know I'm missing some projects use the Massari

search bar

onto the L two,

Section 8.11 Polygon

flip ins Before we move on to major players in L2 scaling. It's helpful to recap that there are essentially seven paths to scaling block chains that we know so far.

Number one layer one

optimizations as we saw in the directions above. There are a lot of innovative approaches to scaling the core block chains themselves.

They all make different

tradeoffs in the same trill. Emma of decentralization, security and transaction capacity Number two layer 0

interoperability with 2.0 polka dot and

Cosmos ibc all makes similar assumptions that their networks will essentially be networks of interoperable chains with shared settlement layers. Number three payment channels. This is what Bitcoin's Lightning network uses. You lock funds in a channel

and you can operate with other channels that adopt

the same scripts. These are usually application specific, good for payments, but sub optimal for most other cases.

Number four

side chains, X die is a good example. Finance smart chain is also arguably a side chain of theory um or at least it could be in the future. Side chains plug into some layer zero layer

one network and are responsible for their own

consensus security models.

Number five plasma

often called child chains because they are essentially copies of ethereum. These are separate block chains anchored to ethereum through a trust minimized bridge system. Each plasma chain can use its own mechanism for validating transactions, but you still use the ethereum Blockchain as

final arbiter of

truth. The various plasma designs have faced a host of UX and security issues and don't

naturally support smart contract development. OMG and polygon for

example, have since pivoted away from plasma, leading some to suggest that plasma is effectively dead. Number six, optimistic roll ups, optimism and arbitrage muse These see next section. Roll ups are many block chains that move computation

off of ethereum.

There are separate state storage, the full transaction data stored in the

Rollup chain and the fingerprint of that state pushed to the layer one. And

optimistically assumed that the fingerprint

represents the correct transaction history on that roll

up since ethereum stores the fingerprint, it serves

as the final arbiter of truth enabling roll

ups to assume the security guarantees of ethereum itself. It's an innocent until proven guilty

model where users can flag fraudulent roll up transactions during the challenge period. While fully E. V. M compatible unit swap, sushi swap have already migrated. The challenge period means cross chain transactions like moving from Arbitron to ethereum aren't

instantly liquid

number seven.

ZK roll ups. ZK sync and Stark where used these two sections from now

and DY DX is in live production using Stark wears technology.

ZK roll ups are lightning fast because they use something called validity proofs, making them instantly verifiable and eliminating the need for liquidity sucking challenge period. They have also made strides on becoming

the VM compatible with Stark wear Stark net and

Zk Sync 2.0 Sporting built in compilers to support the execution of smart contracts written in solidity and viper. But these E V M compatible solutions aren't live yet. ZK Rollup to date have only supported a few discreet tasks like direct

transfers and trading like loop ring

if you're lost. Here's a picture If you're still lost. Cinematics does a great job breaking down layer 2s

and polygons in particular and coin

98 has a good graphic that lays out the two ecosystem and the scaling solutions in particular. Ben Simon of mechanism. Capital is a master of making sense of roll ups.

You might have more one on one level homework if

none of the above makes sense to you Onward for the 201 level students

Polygons rise this year has been remarkable. I'm not talking about the nearly 100 x year to date rally in price. I'm talking about how

effective the team has been so far in making strides to build a general Izabal scaling protocol that allows user application developers to choose between building an ethereum side chain, a plasma chain or soon a roll

up change the fact that polygon flipped ethereum

inactive user addresses maybe the best exhibit a we have that scaling is an existential priority for the ethereum ecosystem.

Were it not for polygons role in processing N. F. T. And gaming transactions this summer, The migration to alternative L. Ones like Selena may have been even more rapid.

Students of modern crypto history will note that polygon is now much bigger than the initial Matic side chain and plasma solution that was launched on ethereum.

If you see the ticker Matic for polygon anywhere, that's why its core product remains the PVM compatible polygon pOS chain and pOS bridge, which derived their security from a group of Maddix takers on ethereum. This chain isn't a roll up since

it has a separate validator set, but it also isn't a side chain because

polygon validators

periodically commit the chain state to ethereum. Leading the team to

characterize it as a commit chain polygon has since

ventured into

new territory with an

array of scaling solutions and complementary tooling between May and july. The team introduced the polygon sDK, a framework for launching new block chains that could either serve as a roll up or standalone chain and avail a data availability solution for polygon sdK chains. It has also made a concentrated effort to focus on ZK technology as the long term scaling solution for the polygon

ecosystem. In august polygons

merged with Hermes, an open source ZK Rollup scaling solution was a step towards integrating ZK into the core

polygon ecosystem. The team also announced

A $1 billion Zk Technology and revealed

Maiden an upcoming Stark based roll up that will be E V M compatible On a long enough timeline, all crypto will converge to zero knowledge crypto if you haven't already check out our

Massari pro subscription, you can start a seven day free trial today. It will give you access to our industry leading research and pro data tools.

Go pro for 15% off with the offer.

Code thesis _ 2022 again, that's thesis _ 2022,

Section 8.12 They're optimistic metallic and the ethereum core developers have come around to the rollup centric

design for ethereum scaling that looks most similar to the designs of polka dot

and cosmos settling a range of independent TvM compatible execution layer

block chains that roll up to the same ethereum beacon chain is already picking up some steam across two different types of roll ups,

Optimistic and zero knowledge or ZK.

Optimistic. Roll ups optimistically assume all

transactions on the role of Blockchain are valid by default.

They use an innocent until proven guilty

Model where transaction confirmations on the L one chain are subject to a challenge period as a fraud prevention mechanism.

This requires some latency between

L one and

L two Transactions in order to allow for challenges

but they are the VM compatible out of the box

which allows developers to ports existing solidity contracts from ethereum

L one to

Optimistic. L 2's with minimal alterations. It's likely we'll see that less than 80% of on chain E V M transaction volume moved to L two chains within the next 12 months. The speed of the migration will be incredible once it's been

de risked by other top applications and the

pOS merge gets implemented in early

2020. 1

time is of the essence as other layer ones continue to gain

Market share at the beginning of the year, Ethereum had 98% of TVl. That's down

to just 66%. Today, Moving quickly on layer two migrations might be easier for some applications aggregate most decentralized exchange liquidity on a single roll up chain but for others it will be

more challenging.

For example, fatality highlighted the need to move quickly on cross

L to portability for N F T s. This fall

Exhibit 347 that will live

in an abundant multi chain future Section 8.13.

Zero knowledge scaling metallic thinks that ZK Rollup will process the vast majority of ethereum transactions

long term.

They may also append the thesis

for alternative L

ones. The most innovative tech in crypto hasn't widely impacted the markets yet. But that may change with Stark Acts and ZK sync C K might be the only solution that will enable crypto to scale to billions of users and it provides the only privacy guarantee institutions might need to participate in public

interoperable Blockchain so they adequately safeguard proprietary customer data.

ZK Rollup as leverage zero knowledge proofs also known as magic beans to industry insiders using this terminology will make you sound really

well connected at your next meet up

to near instantly confirm the state of their L two chains to the

ethereum. L one loop ring

immutable X and Dy

DX are early adopters

but don't expect their success to lead a rush for ZK roll ups just

yet. They aren't fully E. V. M. Compatible and require some customization to hop between the L. One and other L two.

The program ability gap will inevitably close between optimistic and ZK roll

ups. Stark ware says it's Stark

net is coming soon but today the trade off is about simplicity and compatibility versus settlement speed metallic is probably right about ZK rollup is dominating but from a technical and regulatory standpoint it will take time and a lot of education.

My bet is that L1 ethereum transactions account for

Less than 20

of transactions by the end of next year. And optimistic roll ups account for less than

50% of total L two usage by the end of 2023.

It's going to come faster than we

think by necessity.

Section eight point

14 build me a bridge by now it's abundantly clear that a multi chain world isn't just the future. It's the present. There are 15 block chains today that store over 10 billion

dollars in assets

Each and Bitcoin and Ethereum store nearly $2 trillion dollars by themselves. Growth doesn't appear to be slowing anytime soon and it's likely even more black chains will rise in the coming years with the launch of layer to roll up chains. In many ways the world of block chains is quickly starting to resemble our physical world

today defined

by nations which each

have their own economics

governed by their own rules. However, Blockchain ecosystems remain divided their the isolationist nations with limited transportation systems or

international trading

arrangements. Today there is still no scalable, decentralized,

widely integrated protocol that moves value and data between block chains without relying on

trusted third parties. Instead, users mostly rely on centralized intermediaries like exchanges and custodians to move value between block chains, exposing them to custodial risks and seizure slash censorship risks. Luckily

there are a number of teams acutely aware of this opportunity and projects

Like cosmos that have been building for this world since 2014 dim entry barons on wrote a great piece over viewing the various approaches to cross chain bridges. Just as ethereum compose ability enabled developers to package protocols together and build new

dynamic applications, e. G urine depositing assets into compound curves etcetera for

automated yield. We'll likely see similar

cross chain applications that emerge

once the bridge

infrastructure is ready and capable of unlocking crypto collateral

cross chain interoperability is also likely to standardize around a small number of trusted,

widely integrated protocols.

The immaturity of today's solutions creates significant user and developer friction. The bridge that's credibly decentralized, battle

tested and well integrated across layer ones would likely emerged as the

preferred choice for cross chain liquidity simply due to its predictability and reliability. As the multi chain economy grows, it's inevitable that cross chain bridges will facilitate an enormous amount of assets

and data transfer volume prediction. The most popular L 1 to L two, L 1 to L one, L 2 to L to

bridge protocols will have higher daily volumes than most popular centralized exchange

within five years. Section 8.15, wrapping it all up Before we get to our final chapter on participation in the Web three economy and the future

organizational structure of society. It's helpful to take a step back and recap the incredible breath of innovation that's just beginning to

emerge in crypto.

I love this thread on the 23 crypto innovations that will revolutionize

our world. Time will tell if the markets are overheated in the short term, but we're just getting

started in the crypto supercycle. It's day one