Sup, nerds!

Here’s what you’re getting in today’s edition:

• 💅 This is cool: NFTs are dead (for now)

• 🔎 This seems important: A fix for Ethereum’s centralization problem…

• 🤝 Partner: The easiest way to convert cash into crypto​

• 🔪 Let's dissect this: Pay for Netflix with crypto? Impossible! But not for long…

Terms used in this edition (click for an explanation, or ask Web(GPT)3!):
NFT, Staking, Web2/3, Wallets.

💅 This is cool:

NFTs Are Dead (For Now). And That’s a Good Thing! Confused? Same. Here’s What We’re on About…

In one sentence: NFT prices still haven’t recovered from the bear market, but a lack of NFT mania at this point in the crypto cycle is a healthy thing (we’re still super early).

Alright, this article is going to feel like an ongoing string of contradictions — but bear with us!

It’ll make sense in the end.

So last night we were hanging out at Station3, and we got onto the topic of how another Crypto Punk NFT just sold for $16M.

Which prompted our mate to point out that most NFTs haven’t held their value, and of the ones that have held their value, it’s been in USD, not ETH.

Meaning, if you bought an NFT for $5,000 USD back when Ethereum was $1k (spending 5 ETH total), best case?

That NFT is still worth $5k USD, not 5 ETH (which is $17k at today’s prices).

Now, here’s why that’s a good thing in this current market:

In the last cycle, NFT mania only really kicked once everyone felt like they’d made a silly enough amount of money from their investments to start goofing around and buying .jpgs.

It’s hard to tell exactly where we are in the current cycle (because no two cycles are ever the same), but the fact that we haven’t hit all-out NFT mania just yet is a sign of market health.

Let’s pencil in a check up, in say? 8-12 months…

🥇 Want the news before anyone else?

🔎 This seems important:

A Fix for Ethereum’s Centralization Problem…

In one sentence: Barnabé Monnot has proposed a ‘low barrier to entry’ version of ETH staking, designed to entice anyone/everyone, and help diversify the ETH staking market.

Ok, lightning round on ETH staking:

If you want to earn ETH tokens by processing transactions on the Ethereum network, you can:

Stake (aka lock up) your tokens → start processing transactions → earn 5% interest on your total staked ETH per year.

That’s the carrot, now here’s the stick:

If you try and do anything dodgy (like process a bad transaction), others on the network will call you out (and as long as the majority is against you) you’ll lose a chunk of your staked ETH.

Ok, cool. Next, onto the centralization issue…

To process transactions on Ethereum yourself, you need to stake a minimum of 32 ETH ($108k) — say it with us now: “OOOFT!”

So a cottage industry has sprung up, where companies (like Lido) front the initial 32 ETH and let others contribute and earn 5% on however much they want.

Only problem is:

These companies pretty much own the ETH staking market — hell, Lido alone owns an estimated 30%.

A system where bad actors are weeded out by the majority of stake holders policing dodgy transactions is cool and all…

But it breaks down if/when ‘the majority’ is a single entity.

Now comes a new solution from Ethereum researcher, Barnabé Monnot (helluva name!):

We keep everything described up above…but add a ‘staking lite’ version.

Where users can join with lower amounts of initial staked ETH, will be guaranteed to never lose that stake, and will be randomly called upon (lottery style, and much more sporadicly) to process transactions.

This low barrier to entry approach is designed to entice anyone n’ everyone to start staking, and diversify the staking market.

Not bad!

🤝 Partner:

The Easiest Way to Convert Cash Into Crypto

We can count on one hand the amount of times we’ve converted fiat cash into crypto and thought:

“Hmmm…that was easy!”

1. The time we bought ETH via MoonPay from within our wallet.

That’s it. That’s all the times.

MoonPay offers a fast and simple way to buy and sell cryptocurrencies, allowing you to buy crypto with your credit card, bank transfer or even Apple Pay!

(They’re basically the Visa/Mastercard of crypto).

If you want a seamless, hands off fiat to crypto conversion & payment experience:

Click this link to buy crypto right away; or look for the MoonPay logo within your chosen crypto app!

🔪 Let's dissect this:

Pay for Netflix With Crypto? Impossible! But Not for Long…

In one sentence: Ethereum ‘smart account’ wallets will allow users to buy subscriptions (e.g. Netflix), set up automated payments, and sign in to Web3 apps w/ Web2 social accounts.

Not to sound like a broken record, but… 

We have exciting news that will help push Web3 adoption!

The News: Ethereum is looking to unlock full utility by turning wallets into ‘smart accounts.’

Why We Care: these smart accounts will allow for a seamless experience, that’s 100% friendly to Web2-natives.

Users will be able to purchase things like subscriptions (e.g. Netflix), set up automated payments between themselves (e.g pay rent), and sign in to their smart account using existing Web2 accounts (e.g. ‘Sign In With Discord’).

PLUS! From the other side: 

As of today, most (if not all) Web3 apps cost money to explore (e.g. want to post on a Web3 social platform? It’ll cost ya!).

With smart accounts, developers can opt to cover the fees, in order to super charge adoption rates.

This is a big deal!

Cause right now, most Web3 apps are trying to charge folks to use something they’re used to getting for free — and that’s a losing strategy!

Godspeed, smart accounts. Godspeed.

What is Web3?