July 10, 2023
Welcome to Amberdata's Podcast series featuring leaders in the Crypto space where we go in-depth and dive into various topics.
In this episode, Chris Martin, Amberdata's Head of Research, interviews Elias Simos, Co-Founder and CEO at Rated.
Disclaimer: This podcast is for educational purposes only. Nothing here is trading advice or solicitation.
Elias Simos joins Amberdata's Chris Martin to discuss founding Rated, the use cases of validator ratings, applying inequality metrics like Gini coefficients to staking on Ethereum, and the future of Rated.
Rated is building a reputation for machines, starting with Ethereum validators. Their mission is to instill greater transparency and rich context in Web3 infrastructure data. Elias also serves as a senior advisor to Decentral Park Capital. Previously, he was a protocol specialist at Coinbase and co-founder of Full Circle Ltd.
Elias Simos's Journey
Elias's journey into the crypto landscape began in 2013-14 when he encountered Bitcoin. The profound potential of cryptocurrency became evident during Greece's financial crisis in 2015, leading him to foresee an alternative financial system. His roles at Coinbase and Bison Trails solidified his expertise, paving the way for the founding of Rated, where he aims to shine a light on the underexplored infrastructure layer of cryptocurrencies.
The heart of Rated's focus lies in validator performance, particularly in Ethereum's proof-of-stake networks. Elias emphasizes the importance of objective data analysis in assessing validators' operations. Through real-time and historical data, Rated provides insights into uptime, efficiency, protocol adherence, and more, aiding operators in optimizing performance strategies.
Performance Deltas
Elias introduces the concept of "performance deltas" that vary during network upgrades. He explains the trade-offs between network effects and individual performance optimization. By positioning validators closer to network hubs, they can contribute more efficiently, but this risks centralization, undermining the network's resilience.
Slashing
The conversation turns to the issue of slashing, a penalty mechanism for entities that attest to conflicting versions of reality. Elias provides examples of misconfigurations and undue risks that can lead to slashing, highlighting the importance of careful infrastructure management.
Network Genie
Intriguingly, Elias introduces the Network Genie coefficient, which measures stake distribution inequality. This metric offers insights into the distribution of stake-operating entities, revealing decentralization levels within the network. The discussion evolves into Ethereum's Builder landscape, where Elias addresses the centralization risk posed by dominant builders and expresses optimism about the community's ability to address such issues.
Vision
Elias's vision for Rated is encapsulated in the concept of "reputation for machines." This notion transcends traditional metrics, focusing on machine behavior and alignment across different layers of consensus. He envisions reputation as a tool that can enhance consensus, both on-chain and off-chain.
The episode concludes with Elias highlighting the industry's impressive strides in adoption and utility. While the media often fixates on sensational stories, Elias emphasizes the transformative impact of crypto in regions like Venezuela, where citizens rely on crypto rails due to economic challenges.
Conclusion
In this in-depth podcast episode, Elias from Rated provides a comprehensive view of crypto data analysis, delving into topics ranging from validator performance to centralization risks. His insights underscore the pivotal role of data in fostering transparency, decentralization, and progress within the cryptocurrency landscape.
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