Ethereum: Transition to Proof of Stake

Published on
December 31st, 2020
Duration
27 minutes

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19

Ethereum: Transition to Proof of Stake

The Interview - Crypto ·
Featuring Preston Van Loon and Alex Saunders

Published on: December 31st, 2020 • Duration: 27 minutes

Preston Van Loon, cofounder of Prysmaic Labs, joins Alex Saunders, founder & CEO of Nuggets News, to discuss the transition to proof of stake, its security implications, and benefits. Van Loon expounds on the differences between Proof of Work (POW) and Proof of Stake (POS) and the ability to stake Ether after the transition to POS turns Ether into a yield bearing asset. Van Loon also explains why Eth 2.0 is beneficial from both a security efficiency standpoint and from an investment perspective. Filmed on July 14, 2020. Key Learnings: Ether becomes a yield bearing asset with the transition to proof of stake, and the cost to secure the network is reduced compared to proof of work protocols. As a result, the stock to flow ratio for Ethereum will be significantly better than that of Bitcoin once the transition to proof of stake is made.

Comments

Transcript

Chapters

  1. 00:00:51
    Background and Finding Ethereum
  2. 00:02:46
    Multiclient Ethereum
  3. 00:05:01
    Switching to Proof of Stake
  4. 00:11:26
    Proof of Work vs Proof of Stake
  5. 00:13:51
    Proof of Stake Incentives
  6. 00:17:16
    Miner Transitions after Ethereum 2.0
  7. 00:22:43
    The Bigger Picture

Mark Yusko

Morgan Creek Capital Management, Co- Founder, CEO, & CIO

Mark Yusko is the Founder, CEO and Chief Investment Officer of Morgan Creek Capital Management. He is also the Managing Partner of Morgan Creek Digital Assets.

Morgan Creek Capital Management was founded in 2004 and currently manages close to $2 billion in discretionary and non-discretionary assets. Prior to founding Morgan Creek, Mr. Yusko was CIO and Founder of UNC Management Company (UNCMC), the Endowment investment office for the University of North Carolina at Chapel Hill. Before that, he was Senior Investment Director for the University of Notre Dame Investment Office. Mr. Yusko has been at the forefront of institutional investing throughout his career. An early investor in alternative asset classes at Notre Dame, he brought the Endowment Model of investing to UNC, which contributed to significant performance gains for the Endowment. The Endowment Model is the cornerstone philosophy of Morgan Creek, as is the mandate to Invest in Innovation.

Mr. Yusko is again at the forefront of investing through Morgan Creek Digital Assets, which was formed in 2018. Morgan Creek Digital is an early stage investor in blockchain technology, digital currency and digital assets through the firm’s Venture Capital and Digital Asset Index Fund.

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SkyBridge Capital, Founder & Co-Managing Partner

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Alex Saunders

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He retired from managing client money at the age of 36 in 2004 and now lives in the tiny Caribbean island of Little Cayman in the Cayman Islands. Previously he co-managed the GLG Global Macro Fund in London for GLG Partners, one of the largest hedge fund groups in the world. Raoul moved to GLG from Goldman Sachs where he co-managed the hedge fund sales business in Equities and Equity Derivatives in Europe. In this role, Raoul established strong relationships with many of the world’s pre-eminent hedge funds, learning from their styles and experiences.

Other stop-off points on the way were NatWest Markets and HSBC, although he began his career by training traders in technical analysis.

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22-year Wall Street veteran who has been active in bitcoin and blockchain since 2012. In 2018-20 she led the charge to make her native state of Wyoming an oasis for blockchain companies in the US, where she helped Wyoming enact 20 blockchain-enabling laws. From 2016-18 she jointly spearheaded a blockchain project for delivering market index data to Vanguard as chairman and president of Symbiont, an enterprise blockchain start-up. Caitlin ran Morgan Stanley’s pension solutions business (2007-2016), heldsenior roles at Credit Suisse (1997-2007) and began her career at Salomon Brothers (1994-1997). She is a graduate of Harvard Law School (JD, 1994), the Kennedy School of Government (MPP, 1994) and the University of Wyoming (BA, 1990).

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Luke Gromen has 25 years of experience in equity research, equity research sales, and as a macro/thematic analyst. He is the founder and president of macro/thematic research firm FFTT, LLC, which he founded in early 2014 to address and leverage the opportunity he saw created by applying what clients and former colleagues consistently described as a “unique ability to connect the dots” during a time when he saw an increasing “silo-ing” of perspectives occurring on Wall Street and in corporate America.

FFTT caters to institutions and sophisticated individuals by aggregating a wide variety of macroeconomic, thematic and sector trends in an unconventional manner to identify investable developing economic bottlenecks for his clients. Prior to founding FFTT, Luke was a founding partner of Cleveland Research Company, where he worked from 2006-14. At CRC, Luke worked in sales and edited CRC’s flagship weekly thematic research summary piece (“Straight from the Source”) for the firm’s clients. Prior to that, Luke was a partner at Midwest Research, where he worked in equity research and sales from 1996-2006. While in sales, Luke was a founding editor of Midwest’s widely-read weekly thematic summary (“Heard in the Midwest”) for the firm’s clients, in which he aggregated and combined proprietary research from Midwest with inputs from other sources.

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