#14 - Vitalik on the return of Ethereum
Episode publishedPodcast: The Network State PodcastThe Network State Podcast
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Vitalik, welcome. There's plenty to talk about. First, you wanna give some remarks on, I don't know, the state of Ethereum, what's on your mind that we can do it, specific things.
From the technical perspective, all of the pieces are finally, like, actually in place to make it viable to do kinds of things that we've been talking about doing for a really long time. Right? And and I could give a few different examples of that. Right? So one of them is obviously scale. Right? So in, you know, 02/2017, crypt CryptoKitties, 02/2021, DeFi, like, what broke all of those things is basically, eventually, there was so much excitement. It hit against the wall of fixed usage, and then the transaction fee is went to $50.50 dollars and a bunch of people got angry. Warrior twos are co
like, things like Aave, or been trending down over time? Yes,
it has. That's
a great graph. Yes. Okay. And
then if you look at things like Aave, like, basically the, you know, the sturdy stuff, like, that's, Can
can I make a comment on that? Yep. I never did any yield farming or anything like that because you'd be, quote, investing with the expectation of 6% return. We're actually risking your entire principal because there can be a smart contract hack. It could go to zero. Right? So instead, I'd only risk principle in, like, an angel investment where I knew that could go to zero, and I just held back and waited till DeFi matured, and now it started to mature.
Yeah. So we and, basically, you know, for mature protocols, I mean, like, it's even lower than half a percent. Right? And then on top of that, the other risk, of course, is like the risk that you personally screw up, because, something happens to your wallet, and then this is why I've been, like, pushing for social recovery, multisigs, account abstraction, all of this stuff nonstop for the last ten years. And the thing that did happen, right, is like the safe front end got hacked. Right? But, if you're using an alter an alternative UI, then you were fine. If you were checking the transactions
It's funny you say it's because this is this is the flippening. Right? And I think that, you know, it's funny. I I I said this to somebody, and, you know, what is DeFi? It's what takes over after the current financial system, Western financial system ends. Right? So there's like a flippening of this is actually gonna become more secure than the current Western financial system. Go ahead. Yeah. Exactly.
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