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  2. #47 Unmasking the realities of Censorship & Power on Ethereum with Joe Wait

#47 Unmasking the realities of Censorship & Power on Ethereum with Joe Wait

Nov 3, 2023

Summary:

We welcome Joe Wait to discusses his thesis on censorship resistance within Ethereum and its broader implications for the cryptocurrency ecosystem. The conversation delves into the value of decentralisation, the Tornado Cash incident, and the challenges and debates within the blockchain space. Joe exposes some thought provoking issues with Power and Incentivisation on Ethereum and Bitcoin.

This is a must listen Episode!

Key Talking Points:

  1. Introduction and Background of Joe Wait:

    • Joe Wait's introduction, his role at Superchain, and his journey into blockchain and cryptocurrency.

    • His academic background in philosophy and transition to software project management.

    • Initial skepticism about Ethereum and eventual belief in its potential.

  2. Focus on Censorship Resistance in Ethereum:

    • Discussion on Joe's thesis, "Towards an Evaluation of Ethereum’s Censorship Resistance."

    • Exploration of the value and importance of decentralisation in blockchain technology.

    • Comparison of decentralisation to insurance or cybersecurity, emphasising preparation for low probability, high impact events.

  3. Tornado Cash Incident:

    • Explanation of Tornado Cash as an obfuscation tool on the Ethereum network.

    • Discussion on legitimate uses of Tornado Cash for privacy and security.

    • Examination of potential misuse of Tornado Cash for illicit activities.

    • Analysis of the unprecedented nature of sanctioning a smart contract by OFAC.

    • Discussion on the severe penalties associated with violating sanctions and the extended reach of U.S. jurisdiction.

  4. Implications and Concerns:

    • Exploration of the broader implications of the Tornado Cash incident on the decentralized autonomous code community.

    • Concerns about the chilling effect on innovation and development within the blockchain space.

    • Discussion on the arrest of individuals associated with Tornado Cash, highlighting issues related to jurisdiction and legal proceedings.

  5. Ethereum Censorship Resistance and MEV Relays:

    • Discussion on the centralisation risks associated with Ethereum, particularly in the context of MEV relays.

    • The lucrative nature of MEV relays and the trend of vertical integration as centralising and potentially corrosive trends.

  6. USDC and Real World Assets:

    • Impact of non-duplicable assets, particularly stablecoins like USDC, on the blockchain ecosystem.

    • Potential for regulatory capture and centralisation when real-world assets are involved.

  7. BlackRock Bitcoin ETF and Forks:

    • Concerns about the influence of financial instruments like ETFs on the cryptocurrency ecosystem.

    • The potential for entities in control of these financial instruments to influence the network's direction.

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