Solana and Ethereum NFT thread
1/ While NFT action isn't anywhere near what the space saw in 2021, trends continue to emerge from NFT Markets.
Let's explore the latest on @ethereum and @solana NFT marketplaces.🧵 pic.twitter.com/MSm5IX6Vli
— Messari (@MessariCrypto) October 17, 2022
2/ @MagicEden continues to dominate @solana NFTs, now capturing ~78% market share.@sudoswap AMM fork @hadeswap has moved into third place on Solana, signaling that bonding curve pricing may actually fit better on low-fee chains like Solana. pic.twitter.com/3ySnSYYK83
— Messari (@MessariCrypto) October 17, 2022
3/ While a @sudoswap fork gains market share on @solana, sudoswap itself has lost its steam, with volumes down 80% from its peak.
Sudoswap has managed to retain its market share gains hovering around 5%. pic.twitter.com/4EHQFanYyx
— Messari (@MessariCrypto) October 17, 2022
How centralized is Ethereum?
1; Eth Censorship (95% FUD, 5% todo list)
People asked me my opinion on the "51% censored blocks!!" MEV Watch graph that's been making the rounds, so here goes.
No original opinions here: this topic is well-covered and well-understood. I'll link those resources at the end. pic.twitter.com/eFfl0mrxrQ
— T. M. Basile Genève 🌺 🦇🔊~timluc-miptev (@basileSportif) October 17, 2022
2; The graphic (as used on Twitter to score InternetPointz) is clearly intended to evoke fears of a 51% attack in PoW, or of the similar thresholds in PoS.
That is not what's happening here.
HUGE difference between:
– creating/validating a block
&
– building on prior blocks— T. M. Basile Genève 🌺 🦇🔊~timluc-miptev (@basileSportif) October 17, 2022
3; Creating a block means deciding what you will put into it.
Building on blocks means deciding whether a block *someone else* made is OK for you to build on.
%-based attacks in PoW and PoS are all about the latter: not building on prior blocks, even when they are valid.
— T. M. Basile Genève 🌺 🦇🔊~timluc-miptev (@basileSportif) October 17, 2022
4; A 51% attack in PoW is when you use your majority to consistently not build on others' valid blocks, presumably in order to censor the contents of those blocks.
There are similar attacks possible in PoS when an attacker has a high % of stake.
— T. M. Basile Genève 🌺 🦇🔊~timluc-miptev (@basileSportif) October 17, 2022
5; In current Eth, however, **NOTHING LIKE THAT IS HAPPENING**.
Instead, validators are excluding some transactions when *creating their own blocks*, but building on prior valid blocks as normal.
— T. M. Basile Genève 🌺 🦇🔊~timluc-miptev (@basileSportif) October 17, 2022
6; This presents ~zero censorship risk.
Why?
Because 48% of validators will include your Tornado tx, and all the rest will build on those blocks. Your dirty tx is going to get in just fine.
Even just a couple % of honest validators is sufficient to stop this "censorship."
— T. M. Basile Genève 🌺 🦇🔊~timluc-miptev (@basileSportif) October 17, 2022
7; Is this a good situation, where 52% of validators censor at the building level?
NO. The right number would be 0%, and there are proposals to get there (we'll look at the end).
However, it is not a critical risk for the Eth network in any way imo.
— T. M. Basile Genève 🌺 🦇🔊~timluc-miptev (@basileSportif) October 17, 2022
8; If you've gotten this far, there are two obvious concerns this raises:
1. Is there frog-boiling risk, where people get used to progressively larger %s of stake being censored, until it's 99%+?
2. Could governments switch to forcing validators to not build on "bad" blocks?
— T. M. Basile Genève 🌺 🦇🔊~timluc-miptev (@basileSportif) October 17, 2022
9; For the first, you need to understand what MEV Watch tracks.
58% of validators currently outsource their block building to mev-boost, a program that (basically) suggests optimal tx bundles for earning MEV.
To outsource, you choose a "relayer" who sends you those bundles.
— T. M. Basile Genève 🌺 🦇🔊~timluc-miptev (@basileSportif) October 17, 2022
10; The default relayer is run by Flashbots, and it censors OFAC-blacklisted addresses. As far as I can tell, a lot of validators just use the default relay, and thus censor in building.
This sounds not-great for frog-boiling, since defaults tend to be sticky.
However…
— T. M. Basile Genève 🌺 🦇🔊~timluc-miptev (@basileSportif) October 17, 2022
11; …it also means that any validator who cares at all about censorship will be aware of this, and will not use that relayer (or will not use mev-boost).
This gives a hard upper bound to the % of validators that frog-boiling can capture–probably 80% or so.
— T. M. Basile Genève 🌺 🦇🔊~timluc-miptev (@basileSportif) October 17, 2022
12; There will likely always be a remaining 20% (at least) who care enough to do non-default setups and stop censorship, and that is plenty.
Again, the right number of censoring validators to shoot for IS ZERO PERCENT; this is just a worst-case analysis.
— T. M. Basile Genève 🌺 🦇🔊~timluc-miptev (@basileSportif) October 17, 2022
13; Beyond that, there is strong social and technical pressure that can be applied to lower the censoring builder %.
Social: pressure Flashbots to disable their default relayer. Short-term fix, but useful.
Technical: make Eth more censorship resistant at the base layer.
— T. M. Basile Genève 🌺 🦇🔊~timluc-miptev (@basileSportif) October 17, 2022
14; For the technical one, there are a number of plans, and they seem to be roughly 3rd on the Eth roadmap after withdrawals and data scaling (EIP-4844).
This podcast goes over those plans and mechanics well, so I will just link to it here:https://t.co/lhvDexQMhO
— T. M. Basile Genève 🌺 🦇🔊~timluc-miptev (@basileSportif) October 17, 2022
15; Now to the 2nd concern: will governments force censorship in which blocks get built on?
This has been discussed A LOT, and is a completely separate topic. I'll link below to some of the resources on it:
— T. M. Basile Genève 🌺 🦇🔊~timluc-miptev (@basileSportif) October 17, 2022
16; Eric Wall explaining how slashing the offending validators is the correct response:https://t.co/Ulm7SdTdTp
— T. M. Basile Genève 🌺 🦇🔊~timluc-miptev (@basileSportif) October 17, 2022
17; Justin Drake providing nuance as to how the initial "slash" would just be a UASF that caused a 1-2% funds loss for the offending stakers the first time, and would be a full slash the second time:https://t.co/Tj7c6NVUAK
— T. M. Basile Genève 🌺 🦇🔊~timluc-miptev (@basileSportif) October 17, 2022
18; Me walking through the basic ways that enforced attestation censorship could play out:https://t.co/TGTtrvfEgV
— T. M. Basile Genève 🌺 🦇🔊~timluc-miptev (@basileSportif) October 17, 2022
19; And here is @nic__carter trying to FUD about how slashing would work, but getting lots of important details wrong because he can't be fucked to actually read the stuff he's criticizing:https://t.co/FvJAadoXXt
— T. M. Basile Genève 🌺 🦇🔊~timluc-miptev (@basileSportif) October 17, 2022
20; Now, a couple notes.
First, the current mev-boost thing is **NOT** a PoS vs PoW issue. Flashbots rolled mev-boost out post-PoS, but it would work just fine under PoW.
— T. M. Basile Genève 🌺 🦇🔊~timluc-miptev (@basileSportif) October 17, 2022
21; Second, ETH's roadmap is correct to prioritize withdrawals over build-level censorship resistance.
The former is **critical** for social slashing and UASFs to work properly. You can't (legitimately) slash a staking provider unless people first have the option to withdrawal.
— T. M. Basile Genève 🌺 🦇🔊~timluc-miptev (@basileSportif) October 17, 2022
22; Build-level censorship resistance, on the other hand, is more of a nice-to-have if there is any reasonable % of ideological/altruistic/engaged validators, which is HIGHLY likely.
We will get it (betting against Eth core dev to ship is moronic), but it can be delayed.
— T. M. Basile Genève 🌺 🦇🔊~timluc-miptev (@basileSportif) October 17, 2022
23; Takeaways/Conclusion:
– Eth is fine right now, and frog-boiling concerns are misplaced/handleable
– REAL 51% attacks can be handled, but staking withdrawals are critical for this
– Bitcoiner takes like this are retarded:https://t.co/tgDFskrfoj
— T. M. Basile Genève 🌺 🦇🔊~timluc-miptev (@basileSportif) October 17, 2022
Source: https://www.cryptopolitan.com/best-twitter-threads-of-the-day-october-17th/