Chia Network jumping into NFTs

Plus dYdX leaving ETH, NFT alpha hunting, and some fun stuff.

June 30, 2022

MUSHROOM ALPHA

GM. As we round the bend of the week into Thursday we hope you are taking the time to create a BBQ list worthy of an Iron Chef competition. We got brisket, ribs, and shrimp on ours so far.

Today's Topics:

  • Chia Network jumping into NFTs

  • dYdX bailing on Ethereum and StarkWare

  • Want to get sweet NFT alpha?

  • Quick Links

Chia Network is jumping into NFTs

The Chia network created a new NFT standard they hope will take off. The "green" storage-based blockchain has been trying to gain traction since launch.

The founder of Chia, Bram Cohen also founded BitTorrent, a site people used to pirate music and movies back in the day.

So why use this over ETH or Solana?

  • More eco-friendly than ETH - Sure but they are going to Proof of Stake soon.

  • More stable than Solana - kinda hard not to be. Sorry we had to go there.

  • Transparency into NFT ownership using a decentralized identifier (DID)

  • Improved permanence of NFT assets

  • Direct trades of NFTs between users with no 3rd party

To kick this all off Chia is giving out 10,000 Chia Friends profile pic NFTs to farmers. It looks like a Moonbirds rip off to us. While the give away seems cool they should have done this last year/

More details here.

dYdX bailing on Ethereum and StarkWare

When a major crypto exchange kicks out of Ethereum people take notice. dYdX shocked the crypto world last week when they said they will leave Ethereum and StarkWare. StarkWare is the Layer 2 solution designed to make ETH cheaper and faster.

dYdX said lets ride or die and are going to build their own blockchain using Cosmos. Sometimes you just gotta go hard mode to do what you want.

Why are they doing this?

  • Provide a better user experience for current users

  • Allow the platform to have ease of customization

  • Lower fees

  • Increase transaction speeds

Sounds like everything ETH can't do. dYdX uses an order book system to pair buyers and sellers. Ethereum was too slow and expensive which is what led them to the Layer 2 StarkWare. This like a glove in a famous court case also did not fit.

So why do Layer 2s also suck?

  • Reliance on a single node operator between the Layer 2 and Layer 1. This means one computer vs a network packages all the transactions from the Layer 2 to the mainnet. Single point of failure? Yes.

  • They can potentially front-run transactions by viewing buy/sell orders to profit

People are saying the exchange leaving is proof ETH is not making changes quick enough to meet the needs of the future crypto ecosystem. In the coming months we will see if other projects leave Ethereum.

Want to get sweet NFT alpha?

Our favorite crypto analytics tool Nansen once again teaches a man how to fish for NFTs. Thanks guys!

Quick Headlines

Grayscale ETF Rejected - So now they sue the SEC of course.

Court orders liquidation of 3AC assets - Some people are saying about time?

Luda: Create to own project - A new framework for IP.

GMX Token Deep Dive - Onchain Wizard breaks down why this coin could take off.

Funding News:

Dynamic raises 7.5m seed - Wallet-based authentication and identity

Linera raises 6m seed - Layer 1 blockchain dedicated to bringing Web2 scalability to Web3

Not crypto but just crazy!

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