YouSaid · the spoken record

Arthur Breitman

lines on the record: 61
first: 2022-05-20
most recent: 2022-05-20
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“Things there's more value in the store of value aspects than the supply chain applications. A lot of the supply chain applications we see on blockchains honestly are StoneSoup. You'll see IBM go to these people and say put everything on a blockchain. But if you digitalize your entire chain where you have you can scan QR codes and do all of this and put it in a system and then you've solved 99% of your problem and then you put it on blockchain, why not? But that's not really what's driving the value. I believe this value in digitizing and having cryptographic signature on supply chains, absolutely. I don't think the blockchain adds a whole lot to this.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, in that case, of course, the broker should not favor another client or themselves in doing the transaction. But if they trade, and just to be clear, this happens for on-chain trading when you use DeFi protocols. It's not directly an issue with trading on centralized exchanges. I think, first of all, a lot of it comes from the latency of chains. The more latency you have, the more MEVs there's going to be because quotes are not adjusted in real time. So it's partly a fraction of that. And the way in which protocols have been designed, if you are in a system where you can't just quote really rapidly, you need to build batch transaction mechanisms. And they're harder to program. But once you have this, you can reduce CMEV on exchange a lot. And I think we'll see that happen.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“So I don't read tea leaves. I think it's possible because people have made MEV into some sort of moral issue, which I think is dangerous. The word saying like, oh, the miners are exploiting people, they're taking advantage and so on and so forth. One thing that I think would be more helpful to frame it as, and again, I said it's like if you want a fiduciary response, you know, if you want a fiduciary relationship with your minors, you should ask for it. What I would worry about is a regulation that says that by default as a miner, you have a responsibility with these people, which I don't think you should have.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“Oh, you're done. No, I think what's going to happen is people are going to build better protocols, which are going to remove some of the extractable value”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“So, according to MEV is putting your giant order on the exchange, and everyone knows what you're about to do. And so people can get ahead of you. The difference is that if I put a giant order with my broker, at the very least, the broker has a fiduciary responsibility towards me. I'm his client. And so they have to do things a certain way. Whereas I don't have any fiduciary relationship with the mine. There's nothing stopping people from building this relationships. As a trader, you could go to block producers and say, I want you to promise me that when I send you an order, you're never going to show it to anyone else and you're going to include before I could do that switch. People don't do it.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“Or you're going to give the customers in BBO, but actually you internalize it for something better. So the customer feels like, oh, I haven't paid anything. But actually, you've made money because you can quote tighter on your internalized flow than you could on exchange. So retail really won out out of this. Like the small retail guy who's spying single-name stocks. Market's much more liquid for that. I would say the losers out of this have been large institutional traders who now have to either use execution brokers or dark pools.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“And if you send a retail flow to the exchange, the retailer is going to get a worse price because the exchange doesn't know anything. The exchange says, whoa, whoa, wait a second, we don't know who you are. You could be retail. You could be a hedge fund. We're going to be giving you wide quotes because we don't know. Whereas as a broker, you know the order flow is not toxic. That's a word that's used for informal flow. It's not informal order flow. So you can give it a better price. So you're going to match it internally. You're going to give it a better price than the NBBO, which you're allowed to do that. You're going to report the trade to the exchange.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“It's bizarre because it's also presented, I think, like in 2010 as like, oh, I'm uncovering this big secret. And I'm like, I start working in Common Section 2009 because people were talking about this on TV and I thought it was cool. So it was on CNBC. It's not like they were uncovering a big conspiracy. And people adapted, of course. So they started using execution brokers where they will say, no, we'll take your order, chop it up, and then put it on the exchange. But so now, as a result, what happens is you get internalization of flow. So you get this retail flow.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“This is Reagan MS. Yeah, the retail guy doesn't get access to that. So we're going to put everything on the electronic exchange. And brokers will have to route to whichever exchange has the best, the NBBO, the best big and ask. And a lot of insurance investors, when they start doing that, they had no idea how to do it. So now they start showing this big orders or even if they chop them up, they don't do it in a really do it in a way that heights the amount of volume that they want to do. And they get eaten by high-frequency traders who appear as a college industry as soon as the RegnumS is passed. And so a lot of these big sell-side people get very, very upset at it. And if you read Flashboys, it's a very one-sided book that looks only about the cell side doesn't interview a single person on the high-frequency trading side.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“Yes, and also, you're going to do repeat business with them. That's quite important. And that's happened upstairs at an IC. And then at some point in CC looks at this and say, well, we'll see all these big trades happening and they're very advantageous for the reason.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“It's not even that a term, it's like it's just not informed. You're buying it because either maybe you're gambling or because you're saying like, I like this talk. I want to buy it for retirement and so on and so forth. This is not like you have just received some information for wire about something and you've done all of that. And now you know that the execution, the price is going to go down. So it's quite different. And once upon a time, you didn't have to mix all the order flow together. So if you were a big fund manager and you have this large S&P fund and you need to rebalance and you talk to another big fund manager and they need to rebalance and then you strike a deal because you know that the other person is not trying to screw you, right? They're trying to do this.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“I'm happy to dive into it. So, the first thing to understand is that order flow is not fungible. Order flow that comes from retail trading is not the same thing as order flow that come from Goldman Sachs or that comes from a fund manager. If I come to you and I say, hey, I want to buy this equity from you or these shares from you, sure, sure, you know. maybe not I but if Goldman Sachs come to you and say hey not you want to buy this from us”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“ETF trading per se, right? Not directly, but just having a general financial background, I think, is helpful when looking at a lot of DeFi protocols and understanding how they work or don't work.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“Wow, it was the biggest holder of Bitcoin. How cool is that? Or potentially is the idea that, well, maybe Bitcoin appreciates and that helps us with our unbacking problem.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“What they don't do, what you need to do is you need to be able to set the interest rate in a way that's going to balance the supply, and the supply should be determined by what's packing it. And the demand, which is how many people actually want to hold this stable coin. And they don't have a mechanism like this. Instead of building this mechanism, because you could do that, you could do something where you say, look, we want to have no more than 30% of the market cap of Luna being into UST. And if we have more than 30%, then we'll lower the interest rate, including potentially going negative. And if we have less, so there's a mechanism that works. Instead of that, they're going and say, no, we're going to buy Bitcoin, which is, you know, if you're going to have also some centralized ownership, go and buy some USB dollars. What's the”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“It's a gross way to grow. The difficulty with that is that there's no limits to how much USD can be created. And the Luna holders are actually paying for the 20%. You know, the 20% are coming from somewhere. Now, they're happy to do it because they're saying, well, the gross and the demand in the stable coin creates visibility for the ecosystem. It creates hype and it creates market cap. But there's limitations to how that.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“And they're the same instrument, but because you cannot convert one into the other. So if you don't have, you cannot just hope that people are going to be rational. You need arbitragers to be able to come in and use the arbitrage. So with a lot of fractionalized stable coins, the arbitrage can do that to some extent, but the system relies on constant growth in the number of people who want to hold a coin. And if you don't have this growth and if you have, you know, as soon as you go through contraction and people start asking for redemption, then the system collapses. So that's how basis, for example, it's built and that's how or wanted to be built. Luna is a little different. What they're doing essentially is they're saying, okay, so we have an idea of the price of Luna in US dollars. And so anyone who comes in can issue some against, can burn some Luna and issue some UST or do the opposite. And we're going to pay 20% because, oh, that's great.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“Where after a merger, they had shares trading in Amsterdam and share trading in London. And there's the same equities they give shareholders exactly the same rights and one traded for years at like a 15% discount to the other.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I have my theory is no convertibility, no parity. So if she cannot convert your assets from your dollar stable coin into dollars, you're not going to have any form of parity. And it's such a powerful law. I mean, even you saw it in equities. The classical example is Shell Royal Dutch, where after”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“Yes, it's quite possible. But by and large, people are, you know, even every large institution has at least every bank since 2013 has an innovation center that actually wants to do something involved. So there's already at least some existing interests and some ideas of doing something. So it's more about why should we use what should they use Tesos as opposed to any other blockchain? And then, you know, we rely on some of the good attributes of Tezos, which is very strong decentralization, the fact that we have a really good software stack for building secure application. It's, I think, a lot easier to verify the security of contracts written on Tezos and on contracts that you solidity, good developer community. Sometimes it can just be hand-holding. Sometimes people say, you know what, I've tried to build on this chain and I couldn't find any help and being able to go to these people and provide technological expertise makes some big difference.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so in general, I don't go around to companies who have no interest in using blockchains and sell them. I'm like, you should be using those in general, there's some existing interests.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“That puts the security. And you don't really have a security problem. The way that blockchains are designed, the security works a lot better. Everyone's responsible for their own safety. You don't have this giant omnipot of all the funds of the one bridge which are in the same place.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“So that's, you know, there's a lot of risk associated with running a bridge. If you look at Axi Infinity, for example, so they're not on Ethereum, they're running a clone of Ethereum, and there's a bridge, and they were hacked for like 800 million or something like that. And it's easy to look at this and say, like, aha, you know, silly NFT games. They got hanged, they're probably sloppy with security. And I have no idea what's backing it, but I've seen a bunch of people say, like, apparently the evidence points that them being like North Korea. Because, you know, for 600 million for North Korea, that's a lot of meaningful money. But if your adversaries are nation states”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, yeah, yeah. And so, yeah, it's high ste We're very good for this signature. You're not going to put it in your apartments. You need to be able to access it so you can't even put it in a bank wall. So, you need some sort of probably some data center. But even if you have a data center now, you have to think of like, well, who has access to it? When there's billions, if your attack is worth billions, the budget that you have for actually triggered things. I mean, you have people being kidnapped, for example. There's a lot of... I mean, for billions of dollars, it's not impossible. People have been kidnapped for a lot less than that.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“It's been a good growth hack to say, no, no, we're complementary to Ethereum, but everyone's competing. And so the Polygon contract is a five out of eight multi-sig. And it has a few billions of value. If you're holding a signature and you have...”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so Folegon is an L1 network. And the proof is that they are actually investing in L2 solutions. If you're an L2, you don't invest in L2 solutions for scaling yourself. But a lot of their marketing initially was like, no, no, no, Bill and Polygon is just like Bill on Ethereum because we're all part of scaling Ethereum, but their incentives are at odds with that of the Ethereum ecosystem.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“So they need to be in consent, they need to follow the two chains. But there's a lot of attacks you could do. First of all, if you have, I don't know, the polygon, for example, so polygon is an L1 chain that markets itself as an L2 chain on Ethereum. They have 5 billion”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, but that's the first saying it's like what motivates security attacks is money. And the second thing, so it depends, not every bridge is created equal. And some bridges have way more security design. If you look at the entire Cosmos ecosystem is built around the idea of having these bridges, light client bridges between chain. Now that's more secure than other approaches But a typical approach is you're going to have a set of signers. So, a lot of people who are going to monitor both chains, they're going to see what happens. And then they will sign messages saying, like, yep, I got deposit on this chain. But those signatories have the power to take away the funds because they could pretend that the deposits happened, that never happened, or that a withdrawal happened, that never happened.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“So, first of all, the bridges are big honeypots because, in general, the way a bridge works is you're going to put all your assets on a chain in one little pot, and then you're going to mint a representation of those assets on the other chain. So you have a big pot of money that's sitting there. So first of all, you're a very good target for housing.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“The main thing that a blockchain does is maintain consensus, right? That's a hard problem that they solve. And if you want to have two chains communicate with each other, they need to be in consensus with each other. I mean, each chain needs to know what states the other one is in. But at this point, to have them be in consensus with each other, you would need to have all the validators of one chain be all the validators on the other chain. And by the time you've done that, you've essentially merged the two chains. So fundamentally, bridges that port state from one chain to another are hard. You are either increasing the competitional cost on your network or you're losing security properties.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“In a solution, and then you let it crystallize. If you crystallize very, really quickly, you get something like glass. If you crystallize very slowly, you get a few big crystals. So the lowest energy state is just like one big single crystal. But you're not going to get to the lowest energy states. Because at some point you'll have things that crystallize. So what it means is that, yes, we have a multi-large chain world, but the applications on the chains will stay because they have their own network effect. So I don't think we're going to have chains that specialize on a use case in technical sense. There's no way you can meaningfully say, oh, this chain is the best technologically speaking for sports. And this chain is the best technologically speaking for finance. The designs are largely going to converse, to converge. However, if you have a lot of really, really popular applications which are talking to each other and form their own ecosystem on a chain, they're not necessarily all going to migrate away from one chain to another.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“So, again, to my points, there's absolute arguments where you can say, well, there's a network effect in having one chain. And you have more security, you have more assets, more composability. So one chain wins all. And there's limits to all. Absolute argument away. Like to think about it is as if you have salts in a”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“Not going to put it on some corporate database. You want something that's going to be here for the long run. You want something that gives you some meaningful form of ownership. So the best substrate for that is a blockchain. So I do think there's really good impedance match for digital art and blockchain.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“Absolutely. And in some sense with the JPEGs and the arts, I think it's more trustless in some sense with it because there's nothing tangible, right? It's not like somehow they can say no, you don't own that saying because what you're buying is, I think if you buy a piece of art, for example, and just to be sure, a lot of people buying JPEGs are just buying it because they see it go up and they say like, I'll buy it and I'll sell it tomorrow. There's a lot of gambling associated with it, right? But there's also a genuine art community, like generally digital artists who are minting digital art and selling it. And the argument that I like the most here is like, okay, so digital art is a saying and that's not going away. People want to collect it. People always want to collect art. So what's the alternative? Before that, people would collect digital art and they would receive a paper certificate saying you own this piece.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“Really interesting because you'll get transferred to the title of something. You can start doing things because hey, you know, it works with lending protocols. It's integrated in everything. And if people somehow think that you're not entitled to it, they have to sue you and they have to claim it back as opposed to you saying like, hey, I need this. And you see this in the traditional financial system in the form of escrow, right? If you have a small party dealing with a large party,”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“There's a lot of arguments around this space, and I've been guilty of that, that if you follow the argument, you will reach very strong conclusions. And then there's always some subtlety. You see, like, oh, this could be centralized and therefore there's no value. So, for example, the legal resource is a really good example. Sometimes you'll hear, look, there's no point in having tokenized real estate on a chain because at the end of the day, you're not going to be able to, you know, if you want to assert your right, you'll have to go to a course, you'll have to go to whoever the issuer is. They can refuse to honor it. So all the security of the blockchain is for naught. And I think that's taking the argument way too far. There's a saying that possession is nine-tenths of the law. And in some sense, smart contracts is automated possession. So sure, you could have legal challenges, you could have all of all sorts of things, but it reverses the burden. I think it's Nigzabo who says that smart contracts reverse the burden of the lawsuit.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“Real estate world There were a lot of people tokenizing real estate on blockchains, and they weren't doing it, it was not an innovation now with a bank saying like, oh, we got to do something with blockchain. They came from people who actually had the need and actually had the use case. And they saw the value. And I don't think it's impossible for a centralized system to do this. But having a system that secure, that's automated, that's global. I think the global aspect, the fact that it just works and you have this entire infrastructure around it, you have wallets, you have custodians. Think of it as some sort of layer that plugs in into a large ecosystem that supports it. That lowers your cost. So there's value here. It doesn't come straight from the decentralization. I think it comes from the network effect of having a generic platform where you can build all sorts of things.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah. And I think the most natural, the highest impedance match is store of value. And then we go down from there, but there's still a lot of value that's present. There was a fair number of security token offering on a Tizos blockchain, and a lot of them have come from the real estate world.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“It's really easy to do hot swaps of the protocol has led us upgrade faster. We've had about nine upgrades in the past three years, and we have the tens of grade being voted on right now.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I think in general, decentralization is a cost that you have, and there's benefits associated to that cost, right? So I think it's worth saying, but it feels almost like an insurance premium, you know, right? You pay the insurance a month after month and you say, well, am I paying this insurance? And then you have a fire and you're glad you paid for the insurance. So it's very easy to see the cost of decentralization and the benefits are not always as obvious immediately. In terms of Tesos, we have a governance procedure that allows for upgrades to the chain. So anyone can propose an upgrade on a Tezos chain. And it's set to a vote. And if the vote passes, and it's a very conservative vote, happens over three months. But if the vote passes, the upgrade is adopted. There's a side effect, though, because in order to have a mechanism that completely automated upgrades through voting, a lot of engineering work from the very beginning went into making easy upgrades. And just as a side effect of that, that's a benefit, unrelated to the decentralization. It's just the fact that”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“There's many ways to think about it. You can have the, I would say, de jure decentralization where, like, well, you know, there's no single party is in charge. But then de facto decentralization is like, not only is that true, but on top of that, no party is too prominent or has too much of an impact on the network. And then you could be looking at it in terms of the most narrow sense would be the consensus algorithm who can attack the integrity of the chain. But it could also be who has influence in this network, who has the clout to suggest hard forks, for example. It could be building infrastructure that's critical for this. So you have many, many degrees of that.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“So, if you're looking today at the behavior of price setters in markets, whoever is, the marginal buyer for cryptocurrency does not care about decentralization. It's a nice thing that's been pretty clear. But I believe that for these systems to present some values, they need to be decentralized. Otherwise, they'll be out-competed. If you have some use case for your blockchain, you have to ask yourself, what do I do that Amazon AWS cannot do better as a service? I think the answer to that oftentime is going to rely on decentralization. So there's been a decoupling in the sense that people don't care. But at the end of the day, when the rubber hits the road, decentralization does matter. But I think we're going to need to see more cases of Blockchains being insufficiently decentralized and running into trouble for people to start caring.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“Soon as repression starts turning on, you're pretty glad that you have a sensory resistant store of value. That viewpoint often gets a little derided because people will point at people holding Bitcoin or these other cryptocurrencies and say, well, look at them holding Bitcoin on exchanges. They're not concerned with that. Well, maybe they're not, but maybe they think that other people are going to be concerned with that. And they're help set a price for the store value. So I don't, you know, you're basically either using a store of value or speculative the fact that people are going to use a store of value. And I think that's completely fine.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, absolutely. So I think for me, the most basic use case and maybe the most important one is censorship resistance or value, like being able to store wealth in ways that isn't anyone's liability. Because if you think about it, if you have a bank account that steals the bank's liability, if you have a brokerage account, you probably don't even own the shares in name. And even if you did own the shares, it's still the company's liability, right? liability of the company to you very very few assets which are not someone else's liability you have real estate but it's not easily portable um you could own precious metals but again you know as bare assets are kind of complicated so it's unique in this respect it's a bear asset that you can transact with across the world so that's a second use case um making very easy cross border payments very cheap cross border payments without intermediaries a nice thing you know if you live in a in a reasonably free country it might not seem like a like a big deal but as”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“What are you doing? Because if you're looking at, and there's a cynical view of financial markets that I really reject, which is the idea that all the financial market is just a giant casino, everything is zero sum. It's a very popular view, but I don't, you know, financial markets are very important because they help get liquidity, secondary market get liquidity, and it helps capital formation for companies and companies actually build things. So there's generally value in financial market. It helps companies that do things and build things. And unless you're actually doing this in some ways with DeFi, it's going to remain incestuous and it's going to remain circular.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“Not very coherent, and then started hiring serious academic and doing really serious work in cryptography for this. So it remains to be seen whether or not that's pulled off. But for me, it's more about, it's not about how serious you are, it's more about, you know, at the end of the day, it's about value creation. Like what value are you creating? And it can't be completely internal. Another way to think about it is sometimes I'll visit a small town and I'm thinking, what are the exports of this town? So you have economic activity, you have restaurants, but the restaurant is for the people who work here, so they have to work on something. So at the end of the day, what do you export? What does DeFi export?”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“I mean, we have this famous crypto spec. You basically have something that's nonsense. You get a high valuation, and then you turn that into actually making some points We've seen some people attempt that. I don't know that anyone has really, really, really succeeded at pulling off the crypto spec so far. But it was an interesting move. Certainly people pointed that project like Chainlink, for example. Yeah. Started out.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“Strap something new. It's just a cost. You pay a very small cost in terms of inflation and you get something in return, which is liquidity provision.”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“It was a modification of the protocol itself. So at the protocol level, an amendment was passed and ratified and voted on by the validators of the network that would take a small fraction of the, very small fraction of the tokens minted on every block and then use that, deposit that into a pool to incentivize liquidity provision between Bitcoin and TES. So the idea is that you have a little more inflation in your protocol. I think it comes down to about 0.3% per year. So it's not very, very meaningful for something that has a daily standard deviation of like about 5%. So it's 0.2% per year, but it's an entitlement to people to be willing to provide liquidity between Bitcoin and the point is that, first of all, these are not gigantic kill. The point is not to try to attract people with giant intields, or the point is not to try to”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source
“Of course. So, first of all, I would challenge the fact that Tezos has this queued DeFi, the way I say it is, Tezos is not sentient. It's a project. And they are DeFi protocols running on Tezos. The Tezos Foundation helps”
2022-05-20 · Odd Lots · Arthur Breitman on the Biggest Problems in Blockchain Design · IDENTIFIED FROM THE TRANSCRIPT · source