Dynamo DeFi - The Modular Blockchain Thesis with Andy from The Rollup - Revelo Intel

Dynamo DeFi – The Modular Blockchain Thesis with Andy from The Rollup

In this episode of Dynamo DeFi which took place on February 16, 2024, Patrick hosted Andy to discuss the evolution of modular blockchains, DeFi landscapes, educational initiatives in cryptocurrency, and more! Read our notes below to learn more.

Background

Patrick (Host) – DeFi & Crypto Analyst

Andy (Guest) – Co-Founder of The Rollup

Andy’s Crypto Journey: From Defi Slate to Rollup & Modular Blockchain Education

  • Andy shares his background, starting from his interest in crypto at the University of Florida, through the rise and fall of a Bitcoin blockchain club, to eventually co-founding Defi Slate, which later rebranded to the Rollup. He highlights his journey through crypto’s ups and downs, focusing on education and DeFi.
  • Andy mentions the evolution of Defi Slate to the Rollup, focusing on roll-ups, L2 solutions, and the modular blockchain concept, aiming to provide high-quality educational content in these areas. He announces a collaboration with Patrick for Modular March, featuring events and educational content on modular blockchains.
  • Patrick asks about the factors that enabled the Rollup to thrive through the bear market and remain relevant in the crypto content space. Andy credits success to their genuine curiosity, conviction in the technology, and a focus on quality education over hype-driven content.
  • Patrick highlights the importance of building connections and creating content to gain leverage in the market, pointing out his journey from having no online presence to being well-connected in the space.
  • Andy reflects on the challenge of leaving the crypto market, highlighting that it means leaving a community, not just the market, due to connections made at conferences and through collaborations.
  • Andy explains the overlap between crypto and online business communities, attributing it to the younger generation’s desire for self-improvement and the search for investment opportunities beyond traditional assets, given the high costs of real estate and stocks. He sees crypto as offering asymmetric opportunities for wealth generation.
  • Andy talks about the concept of modular blockchains, explaining their structure as opposed to monolithic chains. He describes how modular blockchains unbundle functions to enhance security, cost-efficiency, and speed without compromising decentralization.
  • Andy explains rollups, describing them as mechanisms that consolidate transactions for efficiency and lower costs on Ethereum, and expresses excitement about the potential of modular rollups for scaling and innovating within the blockchain space.

Unlocking Value: Celestia, Modular Rollups, and Ethereum’s Future

  • Andy explains that Manta, using Celestia for its data availability layer, is the best example of a modular rollup. Manta, built on Polygon‘s development stack, opts for Celestia over Ethereum for data availability, leading to significant cost savings.
  • Andy shares that in the last month alone, Manta saved $1.5 million in fees, which benefited users by reducing their transaction costs and enhancing liquidity in the ecosystem.
  • Andy discusses the concept of anti-network effects in crypto, where increased demand leads to higher fees and reduced transactions, contrasting with positive feedback loops seen in platforms like YouTube.
  • Andy says modular rollups, especially with alternative data availability solutions, can address these anti-network effects by reducing costs and supporting innovative applications.
  • Patrick asks about the implications of these savings and where the money would have gone if not saved.
  • Andy says that without the savings, users would have paid higher fees, benefiting the Manta sequencer and Ethereum validators, rather than being returned to users.
  • Patrick questions the future implications for Ethereum if parts of its role, such as data availability, are taken over by other solutions like Celestia.
  • Andy is uncertain about the specific impact on Ethereum burn but suggests that less data on the Ethereum chain could mean fewer transactions and state storage needs, potentially reducing Ethereum burn.
  • Andy says that Ethereum will continue to be relevant as a global settlement layer for rollups, including modular rollups utilizing alternative data availability solutions and virtual machines.
  • Andy is bullish on Ethereum’s future, noting upcoming changes like EIP-4844, which will lower the cost of transactions and strengthen Ethereum’s role as a data availability layer despite the trade-offs in decentralization and cost with alternatives like Celestia.
  • Andy explains that Celestia has a unique mechanism where staking $TIA earns modular or airdrops from partnering projects, noting the extensive list of potential airdrops, including $DYM to various NFT communities.
  • Patrick says that targeting engaged communities, like pudgy penguin holders, for airdrops is more effective than targeting random wallets, highlighting the community engagement aspect.
  • Andy discusses the trend of external projects airdropping to communities like Pudgy Penguins, $TIA stakers, and $DYM stakers as a form of marketing, mentioning the partnership between Celestia and avail and the potential for future airdrops to $TIA and $DYM stakers.
  • Patrick theorizes that the proliferation of modular blockchains could mimic the explosion of DeFi applications, suggesting betting on infrastructure like data availability layers or rollup technologies as a strategy to capitalize on this trend.
  • Andy agrees, adding that betting on various parts of the stack like alternative VMs, and interop solutions, could be wise as successful applications on these platforms could drive value to the underlying infrastructure.
  • Patrick speculates on the potential for TIA to become a central token within the Cosmos ecosystem, used for gas, collateral, and as a form of currency, highlighting Celestia’s timely positioning in the market.
  • Andy says he is optimistic about the future of modular blockchain deployment and token launches, indicating a bullish outlook for $TIA and $DYM based on their positioning, while reminding that this is not financial advice.

Modular March: Crypto Trends & Entrepreneurial Insights

  • Andy explains that Modular March aims to produce a series of educational content throughout March into early mid-April, featuring top industry speakers on modularity, the future of modular blockchains, interoperability, chain abstraction, and their projects’ scale. 
  • The event will include around 12 to 15 presentations, live panels, streams, game shows with cash prizes on coin beats, intern notes for those unable to watch full videos, and NFTs and POAPs, aiming to spread modularity ideas and foster collaboration.
  • Andy asks Patrick about other trends he’s bullish on that might be overlooked. Patrick lists decentralized physical infrastructure (DePIN) for its synergy with AI, ease of explanation to newcomers, and its role in bootstrapping decentralized networks with examples like Render, Akash, and Helium. 
  • He mentions his interest in Solana and Bitcoin DeFi, noting Solana’s unmatched throughput and recent protocols facilitating Bitcoin’s entry into DeFi.
  • Andy agrees with the potential of Bitcoin NFTs and DeFi and discusses the competitive edge of modular blockchains against Solana’s throughput through industry collaboration, the need for non-EVM chains, and user interface improvements for seamless interaction across numerous modular blockchains. He also speculates on the expansive possibilities offered by decentralized physical infrastructure across various use cases.
  • Patrick acknowledges that the DePIN thesis might be less efficient compared to traditional cloud computing or storage solutions but says that decentralization can leverage underused assets and bootstrap large networks, drawing significant attention and use.
  • Andy highlights the importance of developing personal convictions and theses in the crypto market, which can strengthen one’s mindset and portfolio performance, allowing one to navigate differing opinions effectively.
  • Patrick asks about the type of crypto business Andy would start if beginning anew, highlighting the success of rollups.
  • Andy says that being a co-founder of a crypto project offers significant financial rewards despite the associated stress and legal challenges. 
  • He recommends building a personal brand or becoming a forecaster on social media to secure a prominent position in a crypto company, potentially negotiating for token packages over salary. 
  • He says another feasible venture would be starting a blockchain analytics company to provide data and research to institutional clients.
  • Patrick reflects on the appeal of crypto jobs, considering the value of gaining experience within a protocol before venturing into entrepreneurship. He shares his attempt to secure a job in the crypto industry during a period of growth for his channel, highlighting the challenges of bootstrapping a project alone.

Check out these important links

Show Information

Medium: YouTube (Video)

Show: Dynamo DeFi

Show Title: The Modular Blockchain Thesis with Andy from The Rollup

Show Date: February 16, 2024