The podcast delves into the future of Ethereum, focusing on its upcoming upgrades and the potential for decentralization. The host also discusses Infura’s plans to decentralize by the end of 2023 and the implications of shared sequencer networks. The conversation takes a turn towards market trends, emphasizing the four-year cycle theory in cryptocurrency.
Ethereum’s Future Upgrades
- Long-Term Vision: Ethereum is working on upgrades that could make it maximally decentralized, although these are potentially decades away.
- Interim Solutions: While waiting for these long-term upgrades, Ethereum is focusing on other improvements to enhance its protocol.
- Decentralization: The ultimate goal is to eliminate any centralization vectors, making Ethereum censorship-resistant and unstoppable.
Infura’s Decentralization Plans
- Ownership and Plans: Infura, owned by ConsenSys, plans to start its decentralization journey by the end of 2023.
- DAO Model: Infura is moving towards a DAO model, hinting at the possibility of a governance token.
- Significance: Decentralizing Infura is crucial as it serves as a centralization vector, especially for MetaMask users.
Shared Sequencer Networks
- Espresso Systems: The company has integrated a shared sequencer network in its latest testnet release.
- Adoption: It remains to be seen whether rollups and L2s will adopt shared sequencer networks or go their own way.
- Decentralization: Shared sequencer networks could add another layer of decentralization to the Ethereum ecosystem.
Four-Year Cycle Theory
- Historical Data: The host discusses how the four-year cycle theory has held up in the past, especially for Bitcoin.
- Market Trends: The theory suggests that the market will likely break out of its current range in Q2 or Q3 of next year.
- Investment Strategy: The host advises a long-term investment approach, emphasizing that market conditions can change rapidly.
- Current State: The market has been bearish lately, but this is considered part of the cycle.
- Shakeout Phase: The host believes the next few months will shake out weak hands, setting the stage for the next bull market.
- Long-Term Outlook: Despite short-term volatility, the host remains optimistic about the long-term prospects of the crypto market.
- Bullish: The host is optimistic about the long-term prospects of Ethereum and the crypto market, citing planned upgrades and decentralization efforts.
- Bearish: Short-term market conditions are bearish, but this is viewed as a shakeout phase that is part of the larger four-year cycle.
- Neutral: While the host acknowledges the current market downturn, he emphasizes that it’s part of the cycle and advises a long-term investment approach.