Ethereum: Its Utility and Its Future

Published on
October 1st, 2020
Duration
30 minutes


Ethereum: Its Utility and Its Future

The Interview - Crypto ·
Featuring Alex Saunders

Published on: October 1st, 2020 • Duration: 30 minutes

Alex Saunders, CEO and founder of Nugget's News, joins Ash Bennington, Real Vision senior editor, to discuss Ethereum and the progression of blockchain over the past few years. Saunders describes some of the core reasons he was initially attracted to Ethereum and how its ecosystem has rapidly evolved. He explains some of the most innovative uses of blockchain, including gaming, privacy, and data protection. They discuss some of the differences in the security models between Bitcoin and Ethereum. They also touch on what "Eth 2.0" is and how and why that upgrade will take place. Filmed on August 19, 2020.

Comments

Transcript

  • ST
    Scott T.
    26 October 2020 @ 00:10
    Just like lightning network, Eth 2.0 is perpetually 18 months away. This guy actually said he was HOPING Proof of stake will scale. Terrible. The guy couldn't even give ONE decent example of a practical smart contract. People get overwhelmed by "crypto" not because there is too much to comprehend, its because they are constantly bullshitted by guys like this.
  • WE
    William E.
    5 October 2020 @ 12:55
    Ethereum has a lot of potential competitors such Cardano, Polkadot, EOS & Zilliqa. Each project has their supporters who say their project is going to overtake Ethereum at some point. Zilliqa is up 35% this week while ETH is down 1.5% for the week. Would love to see you handicap this horse race as of today in terms of best ROI for each project (alt coin)
    • MR
      Michael R.
      21 October 2020 @ 00:21
      Handicap by tracking the on-chain volume. https://messari.io/chart/top-10-assets---real-volume---stacked-4B4DAB31
    • MR
      Michael R.
      21 October 2020 @ 02:03
      ETH has the network effect. It's like comparing NYC subway system to a newly designed public transportation system. Nobody is going to demolish & replace that with a better system. The "Ethereum killer" narrative died in 2017. If anything, Polkadot parachains will most likely will gain network effect because of the ETH bridges.
  • JS
    James S.
    6 October 2020 @ 22:40
    DeFi is just the buzz word for ICO 2.0. Watch 99% of these projects amount to nothing and lots of people lose $$.
    • MR
      Michael R.
      21 October 2020 @ 01:58
      This hype cycle did more for setting up the frameworks to build a parallel decentralized system that will eat the lunch of all existing legacy financial systems. Sure wild west mania & most fast break things was the same - that's where innovation happens. When a smart contract bug can be leveraged with a flash loan and drain millions of dollars - there's a high incentive for innovation and building better quality applications. These are the breeding grounds for a decentralized future. Get hypnotized by a single projects' narrative or promises - then yes it's just ICO 2.0. Look past all the noise of projects trying to sell you shit - and you can see what's actually growing underneath
  • LC
    Louis C.
    8 October 2020 @ 22:07
    I had hoped to learn a bit more here. I still am unsure of what sort of realistic applications there are for it. Seemed more theoretical than practical. Perhaps I just need to do a bit more homework.
    • MR
      Michael R.
      21 October 2020 @ 01:42
      Decentralized Finance ("DeFi") was the hype cycle this Summer. Many applications went live and interacted with one another. Move fast and break things with huge bull run frenzy of trading, arbitrage opportunities, bugs that drained millions of funds from some smart contracts. Wild west type scenario - but building the ground floor for decentralizing the entire Banking industry. In 10 years time, Defi will completely circumvent existing financial services & drain all business that banks and other legacy financial institutions provide
  • JC
    John C.
    12 October 2020 @ 02:28
    I don’t understand the business model. Obviously ETC coins have a value. How does an app get monetized? Do i need to buy x ETC coins to run on the platform?
    • MR
      Michael R.
      21 October 2020 @ 01:36
      ETH is used to pay for 'gas' fees. Sending ETH has a small fee. Using different applications on the network can get very complex and thus results in higher gas fees. Defi boom this Summer was a prime example, usage of different types of transactions and applications clogged the network & forced fees sky high. This leads to the "scaling" issues that are currently at the crux of the migration to ETH 2.0 architecture.
  • MR
    Michael R.
    21 October 2020 @ 01:30
    I appreciate these episodes & stoked that Alex is doing multiple appearances on RV! I'm always tuning in to Nuggets News for updates and analysis. Alex's ability to weave thought-out macro thesis into his work is refreshing. Most crypto-centric YouTube channels focus on echo chamber "breaking news" clickbait content. Really exciting to see Alex be a spokesperson for crypto on RV since he doesn't feed into the tribalism game. Getting to listen to Ash and Alex deep dive into these topics is engaging. Keep Alex coming back! I'd really love to see a roundtable w/ Alex, Steven Van Metre, and Jeff Booth. Ash, make this happen!
  • MR
    Michael R.
    21 October 2020 @ 00:25
    Question for Alex: Does an Ethereum app have the potential to challenge a listed cloud or other businesses and monetize that victory? It sounds like the answer is, potentially, yes.
  • TW
    Todd W.
    11 October 2020 @ 22:13
    I think you might need to do a shorter video on smart contacts and how they work. It feels like you are skipping that whole step for new people. I feel like you went from Bitcoin to a NFT and Defi much faster than I would have understood when I first started. When I first started I remember the idea of smart contracts of "If" -> "Then" Simple statements as the easiest way for me to imagine why its trust worthy. Maybe even a short timeline of break downs of how the first applications started then move into more complicated ones.
    • MC
      Mark C.
      19 October 2020 @ 05:43
      They have some of these videos. Check out the crypto kitties video. Also there are a few other videos done last year about crypto that gives a good back ground.
    • MC
      Mark C.
      19 October 2020 @ 16:07
      Also, check out Alex's interview with Raoul in the "Has everything changed" series from September 22nd.
    • MR
      Michael R.
      21 October 2020 @ 00:18
      As Mark referenced. https://www.youtube.com/watch?v=0cZtrX2EHtw
  • MR
    Michael R.
    21 October 2020 @ 00:14
    Alex Saunders has the most engaging way of breaking down the technical topics. I see a very bright future for this young man.
  • PJ
    Pranav J.
    16 October 2020 @ 18:06
    Great interview. As a psychiatrist, I found it very interesting to hear the use of the term “enantiodromia” in the financial sense. Nicely done.
  • MS
    Mark S.
    9 October 2020 @ 21:43
    What are examples of virtual 'lands' where actual businesses are meeting?
    • TW
      Todd W.
      11 October 2020 @ 22:10
      Its called Decentraland https://coinmarketcap.com/currencies/decentraland/
  • MJ
    Marc J.
    5 October 2020 @ 08:16
    Ash, that was great.
  • MB
    Mathieu B.
    1 October 2020 @ 11:14
    Cardano is a better option to ETH2.0 (already proof of stake, more secure, option for scalability proven and being built, etc.). The Goguen update (smart contracts) is expected to be released by the end of 2020. They are also building an ERC20 token converter to move projects from ETH to Cardano; the first project that will leave Ethereum was announced yesterday (https://cointelegraph.com/news/singulatitynet-set-to-ditch-ethereum-for-cardano-citing-speed-and-cost-issues).
    • JK
      John K.
      1 October 2020 @ 13:40
      More developers on GitHub are committed to Cardano than Ethereum.
    • IO
      Igor O.
      1 October 2020 @ 13:48
      With that 2.0 mess Ethereum doesn't have first mover advantage anymore.
    • DL
      Dan L.
      1 October 2020 @ 17:05
      Agree. Further, because it is implied that RV viewers are looking for good investments, it is irresponsible of RV to present Ethereum (ETH) as though its current dominance in crypto-based fintech (de-fi) is analogous to Bitcoin's dominance as a store of value. Utility and store-of-value are apples and oranges. There is already software to automate the process of porting ERC-20 projects to Cardano, which has taken the time and effort necessary to create a truly superior, and far more scalable, reliable and stable platform for deploying finance as software. It is unlikely the battle for dominance in crypto utility gets settled anytime soon, but if does, my money is currently on Cardano (ADA).
    • AS
      Alex S.
      2 October 2020 @ 00:29
      Cardano is interesting & I own some. But you need to be realistic. They haven't even launched smart contracts yet after 5 years. There's maybe 10 projects on Cardano compared to 10,000 on Ethereum. You have to acknowledge the network effects & headstart. With gas fees at $50, there's a reason people are still refusing to use other chains where fees at less than a cent.
    • BN
      Brady N.
      2 October 2020 @ 00:55
      Shhh, ETH bag holders are aboard this flight. Please keep your voices down.
    • KB
      Kurt B.
      2 October 2020 @ 03:29
      Where does Polkadot fit into the ETH vs ADA mix?
    • ig
      ian g.
      3 October 2020 @ 05:17
      Eth2.0 or Cardano ? Its not a Zero sum game ... The pie is big enough for all ... At this rate of exponential change and acceptance , both might be obsolete in 10 years , Doubt it ?!
    • LK
      L K.
      3 October 2020 @ 17:53
      If Cardano had been around for 5 years, as alleged above, the it would have been launched at the same time as Ethereum! On the subject of vaporware, wasn't Ethereum originally supposed to move to PoS in 2016?
  • LK
    L K.
    2 October 2020 @ 19:20
    Very good questions from Ash, but some of the answers are very unconvincing. For example, if the underlying premise of Ethereum is for users to take back control of their data and have censorship resistance, don't the users need to run their own nodes? Last I heard most dapps rely on the company Infura, so it's essentially just the old client-server model with new buzzwords.
    • AS
      Alex S.
      3 October 2020 @ 00:20
      Users to own their keys not run their own nodes. Something to discuss in more detail in future.
    • LK
      L K.
      3 October 2020 @ 16:48
      That is incorrect. If apps are backdoored, data/funds can be transferred no matter who holds the keys. If there is no backdoor, a hard fork/protocol upgrade can achieve the same outcome. I absolutely do not condone theft, but this reportedly happened a few days ago with $129 million worth of ERC20 tokens involved with the Kucoin hack. The only reason that the Bitcoin network was not the victim of a hostile takeover in 2017 is because users ran their own nodes.
  • JL
    James L.
    3 October 2020 @ 04:35
    I really like Ethereum for DeFi and for censorship-resistant public data, but a lot of the gaming and virtual applications seem to be creating artificial scarcity of what should be an abundant good, which has been resisted by the mainstream in the mast (think DRM / file-sharing / etc.)
  • NL
    Nicholas L.
    3 October 2020 @ 03:43
    Great explanation of Ethereum 2.0 and how it will work - thank you!
  • NL
    Nicholas L.
    3 October 2020 @ 03:43
    Great explanation of Ethereum 2.0 and how it will work - thank you!
  • MD
    Matt D.
    2 October 2020 @ 03:43
    Great interview Ash and Alex - mind expanding stuff. I love the conceptual discussions. One thing I wonder about is that it seems out of reach to the non-developer? Then - to make it accessible, the security needs to go up a level? I still don't like the POS. A whole virtual world is way too big to not consider - it would need so much to be sorted - which reality would be considered the most legitimate (legally for example), or what about the cross over between worlds, and then between the current reality and this virtual worlds. This simple idea is pretty complex in reality or "virtuality".
  • RA
    Ross A.
    2 October 2020 @ 01:53
    Great interview. Easy to follow. It seems to me that ever step they take to solve problems (mainly scalability) seems to be a step back towards the current (non DLT) system.
  • IO
    Igor O.
    1 October 2020 @ 13:47
    2.0? It's like trying to change wheels while driving on highway.
    • BN
      Brady N.
      2 October 2020 @ 00:40
      I prefer patching a biplanes wings during a dog fight.
  • TR
    Theodore R.
    1 October 2020 @ 17:51
    Thank you gents. Really enjoyed this one... clueless viewer here. But why don’t we hear more about Cardano? There’s been only one piece on RV, wayyyy back.
    • BN
      Brady N.
      2 October 2020 @ 00:38
      Shhhhh Theodore, ETH bag holders are first the exit the aircraft ;)
  • JT
    John T.
    1 October 2020 @ 18:03
    One idea to increase transaction speeds for gaming: Break off Etherium "banks" for individual games to facilitate etherium-to-etherium only transfers between players in said game. Then the "banks" can normalize with the ledger on their own time. With only etherium transfers for in-game items it eliminates the spread in exchanging for currencies. You could even put in a layer of safety by having a special wallet (like a debit account) you have to fill for in game purchases, so that a hacker could theoretically hack the game wallets without being able to reach any coin that the user has not transferred there already. Fun challenges to solve!
  • JE
    Jonathan E.
    1 October 2020 @ 09:00
    I am a relative newcomer to this space but is there a danger that ETH 2.0 will make existing holders valueless? I currently invest in an ETH price tracker and have a concern that I may sendup tracking a redundant price?
    • JE
      Jonathan E.
      1 October 2020 @ 09:00
      endup
    • JI
      Janne I.
      1 October 2020 @ 10:14
      ETH 2.0 is not going to affect ETH holders. The current chain is going to be added to ETH 2.0 as a one of the parachains. Its nothing more than a big upgrade to the current ETH protocol.
    • TK
      Thomas K.
      1 October 2020 @ 10:36
      As eth is a utility token the greater the utility in he network (more transactions & greater adoption) price should increase, however i do think that layer two solutions like plasma, lightening, side chains etc will reduce the utility on the base layer... but that is needed right now as gas fees are insane which actually reduces utility because users wont pay a 10 dollar fee for moving 10 dollars...
    • CH
      Crag H.
      1 October 2020 @ 15:53
      "Its nothing more than a big upgrade to the current ETH protocol" What could possibly go wrong
    • DL
      Dan L.
      1 October 2020 @ 17:20
      If you hold ETH, I would not worry about ETH 2.0. I would worry about Cardano eating Ethereum's lunch. Just talk to any developer who has taken the time to look carefully at Cardano.
  • SS
    Shane S.
    1 October 2020 @ 09:32
    Will blockchain technology become valuable to government and large corporates by way of cyber security?
    • DL
      Dan L.
      1 October 2020 @ 17:16
      Large, public (decentralized) blockchains offer the most security. Hands down. IMHO, public blockchains are potentially of immense value to governments already (title of ownership, voting, cross-border identity etc). However, because governments see public blockchains as potential threats to sovereignty, they focus on weaker solutions which are not completely decentralized. One example is Fed working with MIT on a potential digital dollar. Such solutions are nowhere near as secure because they do not benefit from the reinforcing network effect that makes Bitcoin so secure. Such implementations also provide tempting targets for competing nations who engage in cyber warfare.
  • JK
    John K.
    1 October 2020 @ 13:30
    Of Ethereum's eight co-founders, only Vitalik Buterin is still actively working on the blockchain platform.
  • PB
    Pieter B.
    1 October 2020 @ 06:29
    Awesome interview! Thanks!