Ethereum's Dencun Upgrade and The Starship Launch | The Brainstorm EP 40

Summary

In episode 40 of the Brainstorm, the hosts discuss Ethereum's recent EIP 4844 upgrade, also known as Denny, which introduces Proven sharding and significantly impacts Layer Two scaling solutions. The conversation also covers the importance of the Layer Two ecosystem for Ethereum's scaling and compares Ethereum's approach with high-performance chains like Solana. Additionally, the episode delves into SpaceX's Starship test flight, highlighting its partial success and potential for future missions, including carrying payloads into orbit.

Takeaways

• 🚀 Introduction of Lorenzo Valente, a new associate on the crypto team with a background in mechanical engineering and experience in crypto investment funds and blockchain startups.
• 🔗 Discussion on Ethereum's recent technical upgrade, EIP 4844, also known as 'pro, proen sharding,' which is crucial for Layer Two scaling solutions.
• 🌐 Explanation of Layer Two solutions as the primary scaling method for Ethereum, offering inherited security and lower transaction costs.
• 📈 Highlight of the Denon update's impact on reducing transaction costs and increasing throughput for Layer Two users.
• 🛠️ Technical insight into EIP 4844, introducing a new data storage method with blobs, making storage more efficient and cost-effective.
• 🔄 Comparison of Ethereum's scaling approach with that of Solana, emphasizing the different trade-offs each blockchain makes regarding node requirements and performance.
• 🌐 Discussion on the importance of the Layer Two ecosystem for Ethereum's scaling and its significance in reducing gas fees for users.
• 🚀 Overview of SpaceX's Starship test flight, including its successful separation, fueling capabilities, and eventual disintegration upon re-entry.
• 📊 Elon Musk's tweet on Starship's payload capacity and cost-effectiveness, indicating a potential order of magnitude drop in cost to space.
• 🔄 Incremental progress in SpaceX's goals, focusing on controlled splash downs and eventual landings as part of their development strategy.
• 🚀 Anticipation for Starship's next launch and the potential for it to carry a payload into space, signifying a shift towards operational launches.

Q & A

What is the main topic of episode 40 of the brainstorm podcast?

The main topics of episode 40 of the brainstorm podcast are Ethereum's Denon update and SpaceX's Starship launch.

Who is Lorenzo Valente and what is his background?

Lorenzo Valente is the newest associate on the crypto team discussed in the podcast. He comes from a mechanical engineering background, started his own OTC desk startup, joined a crypto investment fund focused on longtail of assets and trading, and worked for two other blockchain startups, one on Ethereum and the other one on Solana.

What is the Denon update (EIP 4844) and why is it important for Ethereum?

The Denon update, also known as EIP 4844 or proto-danksharding, is a technical upgrade for the Ethereum network focused on Layer Two scaling solutions. It's important because it decreases transaction costs for users on these Layer Twos, increasing throughput and decreasing costs, which is a crucial step in Ethereum's broader scaling roadmap.

How does the Denon update benefit Layer Two solutions on Ethereum?

The Denon update benefits Layer Two solutions on Ethereum by reducing the transaction costs for users transacting on these layers. It achieves this by introducing a new type of data storage called 'blobs', which allows for more efficient and cheaper storage, thereby lowering the costs and increasing throughput.

What are the differences in scaling approaches between Ethereum and high-performance chains like Solana?

Ethereum focuses on keeping hardware requirements for nodes low and unbundling core functions of the blockchain to optimize and improve them, relying on other projects for enhancements. High-performance chains like Solana, Sui, and Aptos make different trade-offs, scaling more via Moore's Law, relying on chips getting less expensive and more performant, allowing nodes to handle more throughput and less latency.

What does the future hold for blockchain scaling solutions according to Lorenzo?

According to Lorenzo, the future of blockchain scaling solutions involves both Ethereum and high-performance chains like Solana making trade-offs and potentially borrowing elements from each other's approaches. This could lead to a mix of optimizations from both ecosystems, although there isn't a definitive answer on which approach will ultimately prevail.

What was the outcome of SpaceX's Starship test flight discussed in the podcast?

The SpaceX's Starship test flight successfully separated its booster and demonstrated various capabilities in space, like a fueling capability and opening up its 'mouth' for satellite dispensation. However, it did not relight its engine in orbit and eventually disintegrated upon re-entry. Despite this, the test flight was considered super successful.

How does SpaceX's Starship contribute to reducing costs to space?

SpaceX's Starship could significantly reduce the cost to space by achieving a max payload in expendable mode of around 200 tons at a cost of $500 per kilogram to low Earth orbit, as opposed to the reusable Falcon 9's cost of just below $1,000 per kilogram. This potential for further cost declines is considered very compelling.

What are the next steps for SpaceX's Starship following the test flight?

Following the test flight, SpaceX aims to conduct more test flights, potentially up to six times within the year. They will likely focus on incremental improvements based on data from the previous flight and may attempt to use the next flights for commercial purposes, such as putting satellites into orbit.

Why did SpaceX choose a controlled splashdown for Starship's test flight?

SpaceX chose a controlled splashdown for Starship's test flight as an incremental step towards achieving a gentle splashdown as the end goal. This approach is considered safer and less risky than attempting to land on a landing pad, which could result in damaging expensive hardware if not successful.