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Bankless: five minutes to understand the ten problems of Ethereum merger

Time : 29/12/2021 Author : btx1yk Click : + -
        Ethereum merger is in the final stage of the long-awaited Ethereum merger. The last test run is planned to be conducted on goerli test network from August 6 to 12. If all goes well, the merger will take place in September. Although the merge is coming, there are still too many misunderstandings about this unprecedented network upgrade on Ethereum. Why is this important? How does it affect the ETH token economy? Will it affect users' gas fees? I have many questions to answer. Today, David provided much-needed FAQs on everything related to mergers. "Merger" is the name of the event when the Ethereum blockchain changes from proof of work (POW) to proof of entitlement (POS).
 
        It is called "merger" because of the merger of two independent blockchains currently running in parallel: the "merger" of the Ethereum main network blockchain and the "beacon chain". The beacon chain was launched on December 1, 2020. The purpose of beacon chain is to do one thing, and only one thing: to do a proof of rights blockchain. There are no transactions on the beacon chain, no tokens or defi applications. It is an empty blockchain and is only used to run the proof of interest consensus mechanism. Because the beacon chain is a & lsquo; Empty chain & rsquo;, It can be integrated with the Ethereum blockchain to replace the pow mechanism of Ethereum without any other variables.
 
        In the history of cryptocurrency, no blockchain has undergone such significant changes. Blockchain does not often change such an important part of its operation, nor does it change the huge and powerful economy built on it like Ethereum. The market value of eth assets today is US $2030 billion (previously US $550 billion), and ecological projects based on Ethereum still have billions of dollars. Ethereum is by far the largest and most powerful economic ecosystem in the encryption field. The security of all these economic activities will be changed from POW based mechanism to POS based mechanism. The merger has greatly changed the economic system of eth in two ways: reducing the issuance of Eth and transforming eth into a primary income asset.
 
        This is because the POS consensus mechanism has brought about a fundamental improvement in efficiency. POS aims to provide the highest level of blockchain security at the lowest cost. POS mechanism reduces the number of eth originally issued for security needs. In contrast, the cost of POS security is only the opportunity cost of capital, and does not represent any real-world commodity or tangible cost. Unlike pow, POS does not need to issue a large amount of money to ensure security. Therefore, these lower security costs make the POS consensus mechanism more efficient. Due to the reduced demand for pow miners, Ethereum can reduce the annual eth circulation from 4.3% to 0.43%.
 
        It is generally believed that reducing the issuance of new eth means that eth is bullish. Because POW miners will immediately sell most of the rewards received, and over time, their mining output eth accounts for nearly 90% of the total supply. With POS, the circulation is reduced by more than 90%, and the management cost as a POS verifier is basically reduced to 0. Almost a year ago, on August 5, 2021, Ethereum launched eip-1559, which is an upgrade to change the transaction costs of Ethereum. Rather than simply paying the miners all the transaction costs, it is better to burn most of the transaction costs.
 
        When the gas fee of Ethereum is 7gwei or higher, the rate of destroying eth is higher than the rate of issuing eth, so that the supply of eth is reduced. At the peak of the bull market, the gas fee remained at 200gwei or higher for several consecutive months, which made 7gwei a very low threshold. "Eth2.0" is a name that is no longer used in the Ethereum community. "Eth2.0" refers to the future version of Ethereum, which will enable POS and sharding. In the history of Ethereum, for a period of time, the two updates of POS and sharding were considered to come at the same time. With the development of R & D, developers realize that they can be released separately.
 
        When the Ethereum l1gas cost is reduced, the L2 cost will be reduced by an order of magnitude. Ethereum's gas fee solution never reduces them on L1, but migrates users to L2 and allows them to enjoy the fast and cheap trading experience found there. After the merger, the Ethereum block out time (the frequency at which a block is added to the Ethereum blockchain) is indeed slightly faster, from 13.6 seconds to 12 seconds. This means that the transaction capacity is increased by 12%, so the gas cost is also reduced by 12%. However, this is a trivial amount and should not be regarded as "reducing gas fees".
 
        POS uses capital rather than energy to protect the security of the blockchain. Therefore, the energy required to maintain Ethereum is equivalent to that of computers; What you are doing now, such as reading this article, sending tweets, downloading movies to your hard disk, etc. After enabling POS, the energy cost of Ethereum is only one node & mdash& mdash; About 2.6mwh per year. This is about 1300 times less than the consumption of the entire American game industry. Extracting eth from the ETH pledge node will not be enabled immediately after consolidation. This is because we should simply keep things as simple as possible, and Ethereum has experienced the largest and most complex upgrade in the history of the industry.
 
        Perhaps, but there are still limitations in this respect. There is a withdrawal / deposit queue, which limits the speed at which people pledge and cancel the pledge. This is also a mechanism to keep the chain stable, so that the fast fluctuation of the Ethereum application layer will not affect the security of the chain. The number 65536 is derived from 2 ^ 16. For some reason, Ethereum developers like these squares. It is clearly known as the "churn limiter". Currently, there are 433916 Ethereum verifiers on the beacon chain. To find out how many verifiers each epoch has, divide it by 65536 and round it down to the nearest integer. The answer is that the more nodes there are, the more total messages are delivered between nodes.
 
        If the number of eth is small, more nodes can be online. Although this is conducive to decentralization, it is limited by scale. Since node message delivery is exponential, reducing the ETH verifier requirement from 32 to 16 will increase the message delivery volume of all nodes by 4 times. 32 is selected as the minimum number of eth shares, which can also produce "Finality" within 768 seconds or "2 epochs". This is a frustrating wrong position, and many people who often support this view may be maliciously spreading this view to slander any consensus mechanism other than bitcoin. Eth holders have no governance rights over Ethereum.
 
        Just like in bitcoin, this power is held by non authentication node operators, that is, the "community". Ironically, these camps propagandize POS as a plan of "getting richer", and it is an indisputable fact that pow mining facilities bring a smaller return on investment to richer and more capital entities than to entities with less capital. POS Ethereum, which has the native income of eth, is the most democratic consensus mechanism because it provides the same proportional return as 32, 320, 3200 or 32000 eth. This is in sharp contrast to POW miners. Due to all economies of scale brought by POW hardware and energy costs, the $100 million investment in mining facilities will generate more than 10 times of the investment of $10 million.
 
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