Donate $1 on Gitcoin Grants and get matched w/ $30—help us accelerate the movement.

Donate $1

Justin Drake is a researcher at the Ethereum Foundation and is leading the charge of applied cryptography on the Ethereum network. Last time he was on the podcast, we discussed cryptography as the foundation for what we called ‘Moon Math.’

This week, Justin returns to the show to discuss Ethereum’s economic engine and how its design decisions (EIP-1559, Proof-Of-Stake, Issuance, etc.) emerges as an incredibly bullish evolution of sound money: Ultra Sound Money.

🎙️ NEW PODCAST EPISODE

Listen in Podcast App | iTunes | Spotify | YouTube | RSS Feed

👀 Want to hear Ryan & David’s after-the-podcast conversation? Full subscribers get access to the raw, unfiltered debrief conversation recorded directly after the episode. For this week only, the debrief will also be available to non-paying subscribers!

Get the Debrief!

Go Bankless with these sponsor tools:

⭐️ AAVE | BORROW OR LEND YOUR ASSETS
https://bankless.cc/aave​

🚀 GEMINI | MOST TRUSTED EXCHANGE AND ONRAMP
https://bankless.cc/go-gemini​

💳 MONOLITH | GET THE HOLY GRAIL OF BANKLESS VISA CARDS
https://bankless.cc/monolith​

📱 DHARMA | MOBILE ONRAMP DIRECTLY INTO DEFI
https://bankless.cc/dharma

🎙 Ultra Sound Money

Guest: Justin Drake

March 22nd, 2021

Last time Justin was on the Bankless podcast, we went in-depth on cryptocurrency's most primitive tools: cryptographic hashes and signatures. He described these as the ‘fire and wheel’ of cryptography technology. This time, we dive into the specific economic design of the Ethereum network and how it is positioned to expand upon the 'stone-age' cryptography of Proof of Work.

Given Ethereum's expressive capabilities, its future has infinite possibilities in terms of both innovation and development. To explore Ethereum's value proposition as Ultra Sound Money, we use the model of the Ethereum Economic Engine. In this metaphor, the basic energy harnessed is monetary value, stored in the 'engine' battery via tokens. The engine itself is structured by the network's consensus mechanism, Proof of Stake. The engine's efficiency is maximized through the issuance structures proposed in EIP-1559.

All of these components (explored in great detail throughout the conversation) contribute to the concept of ETH as 'Ultra Sound Money.' Soundness describes the degree of efficiency and security in the storage and exchange of monetary value. Economic security, anti-fragility, optimized issuance, efficiency, and scarcity combine to create a robust, maximally effective network. This could be the best episode we've ever recorded. ETH is Ultra Sound Money. Pass it on.

Justin Ðrake @drakefjustin

if capped-supply BTC is sound money 📢 decreasing-supply ETH is ultrasound money 🦇

September 10th 2020

200 Retweets915 Likes

RESOURCES:

• The Bull Case for Cryptography

• ETH is Ultra Sound Money

• Justin’s Research

• Justin on Twitter

CATCH UP ON BANKLESS:

• 🗞️ Weekly Rollup (3/19)

• 🧢 Weekly Action Recap (3/20)

• ⚫ Token Thursday - Ren (3/18)

• ✏️ Ultra Sound Money (3/15)

🏴 JOIN THE NATION 🏴

Subscribe: Newsletter | iTunes | Spotify | YouTube | RSS Feed

Follow: Twitter | Instagram | Reddit | TikTok | Facebook

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.