Web3 News For Developers - 28 Aug 2023

Aug 28, 2023

Layer 1

Skip Protocol introduces The Block SDK, an SDK aimed at granting modular control over transaction order to block builders.
A transaction that comes into the mempool layer is normally added to the end of a long list of transactions, with The Block SDK, transactions are filled in different places and matched to different lanes.
The overall purpose of this new SDK, Mareneck argued, is to accelerate the thesis that app chains are powerful, especially when compared to monolithic blockchains wherein all functionality exists on the base layer.
For example, “If you’re a super high-speed order book chain, you might require a different mempool structure than a generalized smart contract chain”
There was not much mention about block builders using this to extract MEV which is my first concern but we’ll continue to watch this space.
Block building is accomplished on Ethereum via Flashbots where MEV searchers partner with miners to extract MEV.

Developers can use Zeth to develop Ethereum-based Layer 2 solutions called ZK rollups.
Zeth makes it possible to prove that a given Ethereum block is valid without relying on the validator or sync committees by doing all of the work needed to construct a new block within the zkVM
Zeth does all of the work needed to construct a new block from within the zkVM, including:
- Verifying transaction signatures.
- Verifying account & storage state against the parent block’s state root.
- Applying transactions.
- Paying fees to the block author.
- Updating the state root.
- Etc.
After constructing the new block, Zeth calculates and outputs its hash. By running this process within the zkVM, we obtain a ZK proof that the new block is valid.
Because Zeth constructs standard Ethereum blocks, it can be thought of as a Type 1 zkEVM

Perpetual contracts (perps) are modified futures contracts without expiration dates, allowing leveraged trading on assets.
You can borrow capital and open leveraged positions on certain assets using perpetuals but since they never expire they are always cash-settled and can be held indefinitely.
Per CoinGecko, the combined market capitalization of perpetual exchange tokens currently sits at over $1.1 billion

Financial Innovation and Technology for the 21st Century Act
- Bill introduced on July 20 for clear classification of digital assets as commodities or securities.
- Delineates regulatory jurisdictions of CFTC and SEC.
- Provides CFTC authority over digital commodities and clarifies SEC jurisdiction.
Responsible Financial Innovation Act (RFIA)
- Similar to the previous one, this proposed bill aims to define the roles of SEC and CFTC in cryptocurrency regulation and enhance consumer protection to prevent incidents like the FTX event.
Digital Asset Market Structure Bill (DAMS)
- DAMS bill introduced to clarify SEC and CFTC roles in crypto regulation.
- Provides framework for classifying cryptocurrencies as securities or commodities.
- Crypto tokens must be certified by SEC as decentralized to be a commodity.
- Allows crypto exchanges to register as an ATS (Alternative trading system) with the SEC.
- Clarifies ATS rules for trading digital commodities and stablecoins.
- Rep. Maxine Waters requested feedback from Janet Yellen and Gary Gensler.
Digital Commodity Exchange Act (DCEA)
- DCEA initially introduced in September 2020, updated version reintroduced in April 2022.
- Update allows stablecoin providers to register as 'fixed-value digital commodity operator' with recording and reporting requirements.

Fine-tuning for GPT-3.5 Turbo is now available, with fine-tuning for GPT-4 coming this fall. This update gives developers the ability to customize models that perform better for their use cases and run these custom models at scale.
Developers can tailor models for their use cases and achieve better performance than ChatGPT4
The beta is private though but example use cases are
- Custom tone
- Reliable Output formatting

Code Llama is an AI model built on top of Llama 2, fine-tuned for generating and discussing code.
It’s free for research and commercial use and it supports many of the most popular programming languages used today, including Python, C++, Java, PHP, Typescript (Javascript), C#, Bash and more.
The goal is to make developer workflows more efficient so that they can focus on the most human-centric aspects of their job, rather than repetitive tasks.

Tornado Cash case could criminalize software code publication, Coin Center says >
Coinbase’s Chosen Blockchain Brand Sees Zero Threat from Zero Knowledge >
Zero-knowledge proof systems have room for improvement, say cryptography researchers >
The 1inch Network expands to Base >
Friend.tech pronounced ‘dead’ after activity and fees tank >
Balancer Pool Vulnerability, User Action Required >
Friend.tech Bot Nets Have Generated Over $2M in Profits >

Perpetual Contract Portfolio Manager:
- An app that helps users manage their perpetual contract positions across various DeFi platforms. It can provide features like real-time tracking of positions, profit and loss analysis, and risk assessment.
Decentralized Application (DApp) Builder:
- A platform that enables developers to build DApps more efficiently by leveraging Code Llama for generating and discussing code. Users can select the features they want in their DApp, and the platform will generate the necessary code for the front-end and smart contracts.
Legal Compliance Checker for Smart Contracts:
- An application that analyzes smart contracts and other software code for potential legal issues. This would be particularly important in light of the Tornado Cash case, which could lead to criminalization of software code publication.

Software Engineer, Data Engineering, Coinbase, US-Remote, $118,575—$139,500 USD >
AWS Platform Engineer, Risc Zero, Remote, $200,000 - $249,000 >
Full Stack Engineer, Skip Protocol, Remote >