In 2018, Ethereum lead developer Fabian Vogelsteller reached out to the community to propose a new standard for smart contracts. Together with co-founder Vitalik Buterin, he created the ERC-20 standard and was seeking input from the community at the time. Little did Vogelsteller know that this new standard would soon spark a wave of initial coin offerings (ICOs) and become the industry’s gold standard for issuing tokens on the Ethereum blockchain.
Just as ERC-20 tokens were gaining traction, Vogelsteller made the decision to leave the Ethereum Foundation in 2018 in order to focus on the development of a new blockchain called Lukso. In a recent interview with Cointelegraph, Vogelsteller discussed his motivation for creating Lukso and provided updates on the latest token standard developments in the industry.
Vogelsteller revealed that the motivation behind creating Lukso was inspired by his wife, Marjorie, who had the idea of creating a blockchain specifically for lifestyle and fashion. He believed this was a great idea and saw the potential for a blockchain focused on mainstream use cases such as fashion designers, social media, content creators, and YouTubers. Vogelsteller wanted to create a blockchain that catered to the needs of internet users today, rather than solely focusing on token, finance, or DeFi applications.
When asked about the inspiration behind creating the ERC-20 standard, Vogelsteller explained that it was based on a concept from Vitalik. They discussed the idea and it eventually became the first smart contract standard. Vogelsteller named it Ethereum Request for Comment (ERC) because he simply wanted to gather comments and feedback. The number 20 was chosen randomly and was never given much thought. Vogelsteller and his team went with the flow, figuring out how to use this new standard as they went along.
In terms of traction, Vogelsteller shared that Lukso had built out a smart contract account over the past five to six years. On May 23, they launched the mainnet, which is similar to Ethereum in terms of technology and consensus algorithm. Initially, there were 10,300 validator keys from the community, and now after one and a half months, the network has grown to around 23,000 validators and continues to grow.
When asked about the decision to create a new blockchain instead of launching as a layer-1 or layer-2 on Ethereum, Vogelsteller cited multiple reasons. One reason was to attract a new crowd and create a new ecosystem that didn’t currently exist. Additionally, he mentioned the challenge of proposing new building blocks on Ethereum, as there was already an established ERC-20 standard. By creating a new chain, Vogelsteller aimed to incentivize early users and provide a subsidy for deployment costs and gas fees.
The interview also touched upon the recent popularity of BRC-20 tokens and the future of Bitcoin. Vogelsteller expressed his thoughts on Bitcoin, calling it extremely limited, slow, and outdated. He emphasized the importance of generic programmable blockchains and highlighted the potential for new standards like ERC-20 and Lukso to drive innovation.
In terms of funding, Vogelsteller mentioned that Lukso had conducted an ICO in 2019-2020, which kickstarted the ICO wave. They implemented a reversible ICO, allowing participants to buy LYX tokens with the option of refunds within a certain timeframe. Out of the 42 million LYX in circulation, the foundation holds about 26% of it, and they are building everything from these tokens.
Overall, Vogelsteller’s journey from creating the ERC-20 standard to developing Lukso showcases his commitment to innovation and creating solutions that cater to the evolving needs of internet users. His vision for Lukso as a blockchain for lifestyle and fashion reflects the industry’s growing interest in mainstream applications and user-friendly experiences. As the industry continues to evolve, the development of new token standards and blockchains like Lukso will play a crucial role in shaping the future of decentralized applications and the creator economy.