[1/13] It may be initially confusing to fully grasp how deposits and withdrawals from L1 to @optimismPBC are actually implemented, and it helps to see the on-chain action of what is happening behind the scenes.

[2/13] Initial setup (simplified): on L1 we have SyntheticBridgeToOptimism from Synthetic and OVM_L1CrossDomainManager from Optimism contracts. On L2 we have SynthetixBridgeToBase and OVM_L2_CrossDomainManager contracts.
[3/13] Additionally we have Sequencer (L2 mining node) that verifies all L2 transactions and submits them in batches to L1 for future reference and Relayer that is responsible for relaying messages from L2 —> L1
[4/13] Step 1 - Alice wants to deposit $SNX to L2. To do that she calls initiateDeposit() method on the L1 SyntheticBridgeToOptimism which takes her $SNX, puts it in the escrow and calls OVM_L1CrossDomainManager sendMessage() method.
[5/13] The CrossDomainManager puts this request to CanonicalTransactionChain (this is an “official” and “unmutable” list of all L2 transactions on L1). As a consequence the Sequencer (L2 mining node) will need to execute this transaction on L2.
[6/13] This will result in invoking completeDeposit() method of SyntheticBridgeToBase on L2. This method will simply mint L2 $SNX tokens for Alice. See the trace below: https://t.co/VKFgJFyOWw
[7/13] Step 2 - Enjoy cheap L2 life. This trace below shows the L2 Sequencer submitting a batch of 346 L2 transactions issueMaxSynths(), burntSynth(), initiateWithdrawal(), updateRates(), etc… to L1.
[8/13] With no gas optimisation, on average, gas used per L2 tx was 26,138 or 3$ per transaction. All transactions are put in the CanonicalTransactionChain, the same used by CrossDomainManager before. https://t.co/vZK32LjJTn
[9/13] Step 3 - Alice wants do withdraw her $SNX from L2. To this end she calls initiateWithdrawal() on SynthetixBridgeToBase on L2 which sends the msg to L1 through OVM_L2_CrossDomainManager.
[10/13] CrossDomainManager changes its state which forces the Sequencer to commit this new L2 state to L1. You can see this in the next trace, with the inititateWithdraw() method being present in the Sequencer’s batch of 6 L2 transactions https://t.co/J2GeauWFRN
[11/13] Step 4 - Now we wait to make sure that the state root commitment submitted by the Sequencer is indeed valid. If nobody submits Fraud Proof that the state is incorrect, we can assume that it is indeed OK and it will never be rolled back
[12/13] Step 5 - after the FraudProofWindow has passed, the Relayer can finally relay message from L2 to SynthetixBridgeToOptimism contract. It constructs proof that convinces OVML1CrossDomainManager that this message was indeed submitted by Sequencer to CanonicalTransactionChain
[13/13] As a result L1CrossDomainManager will call completeWithdrawal() method on SynthetixBridgeToOptimism which will release escrowed L1 $SNX tokens kept there. https://t.co/1O3E78f0Sp
https://t.co/m2H1lCMDzB
https://t.co/KSUmMWFNeG

More from Crypto

Excited to share our 2020 #Bitcoin review.

2020 will be remembered as the year the long fabled institutions finally arrived and #Bitcoin became a bonafide macroeconomic asset.

Below are the top highlights of each month for Bitcoin’s historic year.

1/


Bitcoin is now at all-time highs capping off an extremely successful year.

But it was by no means stable ride up.

2020 was a historically volatile year.

@YoungCryptoPM and I provided a detailed overview of every month of 2020 in all its

Jan.

3 days into the new year the US assassinated Iran’s top general Soleimani.

BTC surprisingly reacted to the events behaving like a safe haven as the risk of war increased.

The events provided the first hints of BTC potentially having graduated to a legitimate macro asset.


Feb.

COVID-19 reached a tipping point causing markets to crash.

BTC’s correlation with the S&P 500 reached an ATH in the following weeks.

This is when everyone learned BTC was not a recession hedge, it was a hedge against inflation and loss of confidence in fiat currencies.
https://t.co/JB7dJ3qp6M


Mar.

Financial markets in free fall.

The liquidity crisis was so severe BTC experienced one of it’s worst days ever.

Now known as Black Thursday, on March 12, BTC plummeted as much as 50% to below $4,000 at its lowest point on the day.

BTC closed the day down 40%
1/ Welcome to #DeFi Wednesday.

Let's talk about how interest-bearing cash on a blockchain is going to revolutionise boring corporate treasury management that concerns every company is is a larger business than all crypto trading in the world.

Enter the thread

👇👇👇


2/ Blockchain community is often seen as toxic maxis and redditors who shill other their weekly favourite shitcoin in the hope of getting Lambo.

Sometimes we also do things that progress humanity towards the better future and interest-bearing cash is one of those things.


3/ Less chad and more things that actually matter:

My incomplete theory of interest-bearing cash is also available also as a blog post:

https://t.co/uiG0fZiVyu

It is 15 pages. Pick your slow poison or die fast by continue reading here.

4/ First time in the history we have an ability to create interest-bearing cash-like instruments.

Interest-bearing cash ticks up dollar (euro) balance real-time in your wallet.

Here is a demonstration using @aaveaave aDAI, based on @makerdao DAI, and @TrustWalletApp


5/ Interest-bearing cash is not like your bank's saving account. Your money in a bank is not yours, but bank's. There are some flaws in the current banking system causing a headache for Chief Financial Officers (CFOs)
Out of curiosity I dug into how NFT's actually reference the media you're "buying" and my eyebrows are now orbiting the moon

Short version:

The NFT token you bought either points to a URL on the internet, or an IPFS hash. In most circumstances it references an IPFS gateway on the internet run by the startup you bought the NFT from.

Oh, and that URL is not the media. That URL is a JSON metadata file

Here's an example. This artwork is by Beeple and sold via Nifty:

https://t.co/TlJKH8kAew

The NFT token is for this JSON file hosted directly on Nifty's servers:

https://t.co/GQUaCnObvX


THAT file refers to the actual media you just "bought". Which in this case is hosted via a @cloudinary CDN, served by Nifty's servers again.

So if Nifty goes bust, your token is now worthless. It refers to nothing. This can't be changed.

"But you said some use IPFS!"

Let's look at the $65m Beeple, sold by Christies. Fancy.

https://t.co/1G9nCAdetk

That NFT token refers directly to an IPFS hash (https://t.co/QUdtdgtssH). We can take that IPFS hash and fetch the JSON metadata using a public gateway:

https://t.co/CoML7psBhF

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