45 ms·

Ethereum 2.0 – Minimum deposit reached

271 points by leesalminen 6y ago

drcode 6y ago
TLDR; The transition from Eth1->Eth2 requires the following steps: 1. Network operators (stakers) deposit at least 524,288 ETH in a special contract 2. The early Eth2 blockchain (the "beacon chain") launches Dec 1st 3. The Eth1 blockchain will be merged into Eth2 (details TBD) 4. Other features will be added to make Eth2 fully functional (sharding being the biggest feature) Just a few minutes ago, step 1 has been accomplished.
- newyankee 6y ago
  Does this mean no more mining and waste of electricity ?
  - seibelj 6y ago
    Eventually yes, but mining isn’t a “waste” of electricity any more than any electricity used for any essential service is. Isn’t all electricity effectively wasted if the same service can be offered for less electricity? Ethereum (and bitcoin) provide a service, and that service is protected using electricity.
    - emilsedgh 6y ago
      If there were refrigerators that could work without electricity with no the same set of capabilities, then any refrigerator still using electricity would be considered wasteful.
      - beaner 6y ago
        I'm not saying that proof-of-stake is bad, but it does change the way the network functions, because it locks capital and therefore affects the velocity of money in the network. It also changes the distribution of mined coin. Whereas currently it takes an equal mining cost to reap an equal reward, proof-of-stake rewards those who already have enough to stake. This is essentially a recreation of the inflation system we have in the fiat world, where printed money first goes to the government, who can spend it at its current value, eventually having it entropy out to other users through spending, at reduced purchasing power. This makes the rich richer, and increases inequality of savings in the network. So it's not exactly the same refrigerator, so to speak.
        viraptor 6y ago
        > proof-of-stake rewards those who already have enough to stake As opposed to people who have money buying mining hardware to make more money that can be invested into mining hardware?
        beaner 6y ago
        Yes, that's how most businesses work. You start with a capital investment, often times through a loan, and through smart management, make a profit on the margin, that you can choose to reinvest to stay competitive. Proof-of-stake is completely unlike this. People who "have" are not required to exchange any effort to reap new reward. They retain purchasing power while the "have-nots" lose purchasing power. I dunno if I struck a nerve with you with these points about proof of stake or something. I'm not completely against it - I think it should be tried, and Ethereum is a great network to try it with. But I also don't think it's completely perfect. I also think proof-of-work is very defensible and likely to succeed in unexpected ways.
        viraptor 6y ago
        I wouldn't say it's completely unlike. I don't think renting out some mining hardware for near-guaranteed return is any different in effort. It's about the same as putting money in an investment fund. PoW, PoS, and other investments practically end up with: until you withdraw the money you can invest your existing wealth to get returns, without real effort.
        beaner 6y ago
        Proof-of-stake requires the majority of what is mined has to be sold on the open market. This redistributes mined coin to any user anywhere, rich or poor. If you mine and do not sell, you perpetually consume and fail in short order. Proof-of-stake doesn't require this natural, market-driven redistribution. It exchanges it for an inflationary process that further separates the rich and the poor. They're fundamentally different.
      - globular-toast 6y ago
        If that happened then we'd just start using the electricity for something non-essential instead. Humanity is not interested in efficiency for the sake of reducing footprint. Humanity is only interested in more. If anything, fridges using more electricity means less electricity wasted (assuming refrigeration is essential and not a waste). This pattern seems to be everywhere. Cheaper electricity: more electricity used. Bigger roads: more miles travelled. More efficient engines: bigger, more powerful cars. Plastic recycling: more plastic used. I challenge you to find any improvement in efficiency which has led to a reduced footprint.
        ehou 6y ago
        Light bulbs. I do not want or have “more light” in my house but do have a lower energy bill after replacing them by LED versions
        globular-toast 6y ago
        And the money you saved will just sit in an account until you die, I presume? What's more likely is you have spent the money saved on something else.
    - brazzy 6y ago
      The problem is that mining can never reduce its energy usage. Any efficiency gains are necessarily eaten by increased difficulty. And in fact, energy usage has to incease in proportion with the value of the network.
      - keymone 6y ago
        you're on to something here. what if i told you that the constant level of energy spent is the level of security bitcoin users demand by virtue of buying it at current price level? would you say constant provision of certain level of security is waste?
        brazzy 6y ago
        > what if i told you that the constant level of energy spent is the level of security bitcoin users demand by virtue of buying it at current price level? I'd say that you're wrong because security is not the primary thing they're buying. > would you say constant provision of certain level of security is waste? I would say that doing so through a constantly increasing level of energy use is indeed a waste.
        keymone 6y ago
        > security is not the primary thing they're buying sounds like speculation. it's a major desirability factor in bitcoin. > constantly increasing level of energy use is indeed a waste the more money you store in a vault - the more security it needs for you to sleep well. you wouldn't lock a $5000 bike with $5 lock. so difficulty increase correlates very much with amount of wealth poured into bitcoin. edit: typo
        brazzy 6y ago
        > sounds like speculation. it's a major desirability factor in bitcoin. No, that's a plain fact. Nobody ever buys security as an end unto itself. You buy security to protect the thing you really want. Which in the case of Bitcoin is by a vast majority "getting rich". > you wouldn't lock a $5000 bike with $5 lock. so difficulty increase correlates very much with amount of wealth poured into bitcoin. It correlates, but not in direct proportion. With any other kind of security, you don't need to spend 10 times as much to protect a 10 times higher value, and there is a possibility of security getting cheaper due to advances in technology.
  - ibz 6y ago
    Said somebody typing a comment online? You can always go back and live in a cave if you think modern society is "too wasteful".
  - beaner 6y ago
    Just to riff on this idea, despite inevitable pushback: Bitcoin's proof-of-work is basically a conversion of energy directly into money. This pushes competition towards cheaper and cheaper sources of energy. First it's finding jurisdictions that subsidize it, then it's creating your own cheaper energy sources. Proof-of-work incentivizes cheap & renewable energy investment. The penultimate phase is custom off-grid mining farms that power themselves via their own renewables. The endgame is that all energy companies will primarily be Bitcoin mining companies, feeding their excess renewable energy into the grid to power homes, etc.
    - tikej 6y ago
      Cool, except so-called renewable energy sources still built using non-renewable materials. There also physical limits to efficiency of energy transformation and slightly less heat loss per unit of energy with much more energy production is not exactly what climate needs right now.
      - beaner 6y ago
        Haven't heard these points before but I'm not sure that they apply to proof-of-work specifically.
      - dane-pgp 6y ago
        "The estimated calculations presented in this work prove that the total power produced by us was 0.0414% in 2000 and 0.0577% in 2017 of the global solar power reaching the Earth’s surface"[0]. So even if Bitcoin mining were to cause global electricity production to increase by an order of magnitude, it would still be a rounding error compared to the amount of global warming caused by the Sun directly. Thinking about it thermodynamically, though, in a future where Bitcoin mining uses only excess solar and wind energy, it wouldn't be adding any heat to the planet because that energy would have become heat anyway. [0] https://www.mdpi.com/1996-1073/12/16/3069/pdf https://www.mdpi.com/1996-1073/12/16/3069/pdf
        tikej 6y ago
        Ok, of course true that sum of heat from sun that reaches earth remains constant no matter whether we use it. However, how it’s stored/used on the earth is another matter. E.g. if it’s absorbed by plants/fungi/other life forms and stored as biomass, part of it doesn’t contribute to heating of the atmosphere/oceans, contrarily to when it’s converted to electricity (where large part is lost due to heating of the solar panels) and then used to computing, where from physics perspective it’s mostly heating (only tiny part is converted to useful work). Also what about the Manufacruring/production of devices to convert solar/wind energy to electricity and to mine bitcoins? It’s based on non-renewable elements (of course any chemical process is reversible given enough energy but Entropy still grows mercilessly) and requires a lot of extra energy. EDIT: as far as we know, thermodynamically all energy will become heat at the end (although not sure if it should be called heat, since there will be no flux). However, we as humanity are/should be quite concerned first about decades and earth’s atmosphere/oceans (and connected parts) not millennia and energetically balance Earth as whole to come. In principle energy from sun could also be stored in form of chemical bonds energy (as it’s the case for biomass) or even nuclear energy (yup, sun-powered nuclear fusion sounds unlikely but why not ;). Then biomass (less efficiently) or nuclei/atoms could be ejected from earth allowing to disperse sun’s thermal energy somewhere else.
  - keymone 6y ago
    zero electricity is wasted on PoW cryptocurrencies. energy consumption is equivalent to constant maintenance of security at the level demanded by market.
    - creddit 6y ago
      I mean I guess this depends on how one defines waste but under definitions I generally come across, if you could get the same level of security for less electricity in a new scheme, then the old scheme is wasting electricity.
      - keymone 6y ago
        sure, if you could. but the value is in the eyes of the beholder. if the market genuinely believed that to be the case - PoW currencies wouldn't be worth anything, so far that isn't the case, so claiming that PoW is wasteful is disingenuous at best. p.s. somebody really dislikes my opinions, as i'm banned from commenting on HN for the last couple hours or so :D
        creddit 6y ago
        You write about markets like they are omnipotent, benevolent gods which they aren't. Markets fail all the time. It's a large part of what economists spend their time studying. Take an intro to game theory course and you can find all sorts of structures that lead to non-socially beneficial outcomes, the prisoner's dilemma being a classic example. There's nothing about markets nor cryptocurrencies that guarantees that they efficiently select for the currency that requires the least electricity. You completely ignore social alignment issues as well as inertia.
        mercenario 6y ago
        It's pretty simple, if it costs you 1 dollar to mine a bitcoin and someone (the market) wants to buy that bitcoin for 2 dollars, that cost is worth it. It doesn't matter what that cost is, if it's 1 dollar in energy or 1 dollar in wages or whatever, it costs $1 and you sell by $2, you profit, the cost was worth it.
  - globular-toast 6y ago
    Probably not. Proof of work seems to be essential for a successful currency. Go visit the City of London or the Financial District of Manhattan to check out the proof of work of the current financial industry. Millions of people busying around and spending time in huge buildings that are---quite evidently now during the pandemic---completely unnecessary. If you really want to stop waste then try to convince people to stop worrying about whether others have more stuff than they do. John Lennon wrote a well-known song about this idea. You could try imagining it too. Unfortunately you've got billions of years of evolution against you, but good luck! Alternatively, if you can figure out a way to do it without proof of work then you'll stop all of this waste while still appealing to our animalistic instincts. But, then again, who are you to talk about waste anyway? What makes your life not a waste of energy? Don't you consume food every single day?
    - rcxdude 6y ago
      This is, to put it mildly, bollocks. Bitcoin uses more energy than the entire finance industry to supervise far less capital and conduct far fewer transactions (by multiple orders of magnitude). You are equivocating by equating levels of inefficiency which differ so drastically you are either deliberately misleading people or have been mislead yourself.
      - globular-toast 6y ago
        I didn't say a single thing about efficiency or bitcoin consumption vs banking industry consumption.
  - wildsatchmo 6y ago
    Funny nobody complains about the energy consumed by actual banks and other services Bitcoin would replace, which is much higher. In those circumstances they can understand it's not a waste at all, but a cost of providing a valuable service. I don't think POS is an adequate replacement. POW was an intentional design choice because of the highly competitive environment that it creates.
    - shermanmccoy 6y ago
      Do you have some modelling, or any credible reference to back up your assertion that the energy used by banks would be higher than a Bitcoin blockchain?
      - Applejinx 6y ago
        And if so, would you provide a projection for the relative energy useage of traditional banking vs. bitcoin for a linearly expanding money supply extended out indefinitely?
      - wildsatchmo 6y ago
        Even if I did provide you some report showing banks use more than Bitcoin (which is still true for now) it's only a fraction of the big picture. Although banks are a good example of this effect, Bitcoin doesn't JUST improve banking. As this plays out, mining infrastructure provides a shared resource that can be used by MILLIONS of companies, among which are banks who manage massive datacenters requiring humans and their associated energy consumption, the cost for audits, compliance, card readers, and other things that Bitcoin makes effortless. Surely unlocking efficiency offsets power consumption, and at scale the efficiency improvements can be astronomical. An accurate figure on this probably does not even exist, especially considering the lack of imagination with respect to Bitcoin use-cases. Not to mention the biggest energy consumers are also the best in the world at reducing their consumption out of competitive necessity.
    - nickik 6y ago
      Bitcoin is not a replacement for banks.
  - koheripbal 6y ago
    That is generally true of any proof-of-work cryptocurrencies.
  - dgrin91 6y ago
    It means orders of magnitude less. The part of the blockchain that proves your transaction was valid is now (oversimplifying here) just a boolean check instead of running a hash algo over and over
    - nwah1 6y ago
      I think a better way to say it is that it moves from a trustless system to a system that trusts based on some criteria. That criteria is usually how many coins one has. Since the original bitcoin concept was solving the byzantine generals problem, the entire point of all the cryptographic work was to be trustless. If you are cool with trust, you can have reversibility, lost password retrieval, anti-money laundering checks, and all the other features of the existing financial system. It would be a carbon copy of that, of course, which would raise the question of what problem this system is solving for people. But I understand that Ethereum is about distributed computing, not transactions, so the calculus may be different. The point being to replace AWS, not Western Union. I'm personally not sold on why a distributed trust algorithm would be superior to trusting AWS or Azure, given that those services can give you a refund for errors, are subject to the legal system, have a brand reputation to maintain, and so on.
      - pkulak 6y ago
        I guess I don't understand how proof of stake uses trust while proof of work doesn't. They seem very similar to me. I could argue that with Bitcoin you have to trust all of these large pools that are constantly flirting with 50% of the hashing power.
        nwah1 6y ago
        That is a good point. Although, in principle Proof of Stake could use any number of algorithms, and thus the trust could be based on something other than who has the most resources. In general for distributed systems, trusting based on reputation is a common idea. "Circles of trust" was how the original Ripple concept was explained. The important question is not which of these ideas is better than each other, but which is better than existing infrastructure.
  - macawfish 6y ago
    Not to mention GPUs! Can you believe how many GPUs have been cooked by this scheme? I got a water-cooled GTX 1080 almost 5 years ago on Craigslist for $500. Usually old things like that get cheaper as time goes by, but not GPUs. Nowadays those things are going for like $800. I was hoping to upgrade to an RTX2080 or something (also a few years old now) but they're like $1000! I can't help but think that cryptocurrency mining is mostly responsible. And supposedly long term mining just fries GPUs, so the used market is dubious anyway.
    - zymhan 6y ago
      I was amazed that my 5 y/o GPU is still selling for half it's original price. I was considering buying a second one for Crossfire, but maybe selling it is a better idea.
    - randtrain34 6y ago
      the 3070 is $499, roughly equivalent to the 2080 TI
      - pteraspidomorph 6y ago
        Out of stock around these parts. It has been for weeks. All stores, all brands. There are a few units left from dubious brands if I order them all the way from Amazon Germany.
    - Forbo 6y ago
      Most serious mining operations will typically undervolt their GPUs for increased efficiency and don't experience nearly as much temperature fluctuation. Buying a used mining GPU isn't nearly as bad of an idea as it sounds on the surface.
  - nootropicat 6y ago
    Yes. For comparison, multiplying the value of total block rewards for btc (inflation + fees) by 365, bitcoin extracts about $6.2B per year from buyers just to exist. Eth2 is going to be extremely light, and is going to run fine on a ~$600 NUC that consumes about 10W. At 20% annual amortization, $0.15/kWh and 10k different validators (people), the total cost of running eth2 is... $1.3M. That's a mind-boggling difference of 4700x. Real costs may be a bit larger as some individual stakers can be less efficient (like running on a 150W average power pc) but compared to what bitcoin consumes - still a rounding error.
  - llcoolv 6y ago
    The electricity is used to verify transactions, which has a massive added value many times exceeding the cost of the electricity invested. Calling this a waste of electricity is the same as calling the hundreds of thousands (if not more than a million) of employess of central banks, regulation authorities, payment processors, etc waste of air. Really really naive and childish. P.S. Did anyone ever calculate the carbon footprint of all these people whose jobs are going to be taken over and compared it? I haven't done the approximation/calculation, but I am pretty sure that cryptocurrencies are going to be a massive improvement over the current system in that aspect as well.
  - mercenario 6y ago
    Do you consider the energy spent mining gold a waste? This electricity is necessary to mine bitcoin. It is the same principle. If you have a more efficient way to mine bitcoin, just do it, you will be rich, or just tell everyone else and everybody will use it.
- skybrian 6y ago
  Does anything change about the “dark forest” problem?
- DyslexicAtheist 6y ago
  I stopped taking Ethereum serious and consider anything that comes from the Gavin Woods / Vitalik Buterin twotter handles as pure garbage (at least from a technological pov). How can anyone take these people serious after they ended up hard forking? They literally had to go against everything they said and stood for by manually intervening or throw the investments of thousands under the bus. Either you're a decentralized system ruled by consensus or you have top-down hirarchy but you can't claim both. They proofed that a human would intervene any time the proverbial sh!t hits the fan which makes them no better than an expensive but centrally controlled set-up of an RDBMS. Ethereum is snake-oil and if I see a CV that says blockchain without making crystal clear what they're doing in that space it goes immediately in the recycle bin. There literally are no valid use-cases (other than buying heroin) in crypto today. And anyone who peddles this stuff always looks like a shill. the tragic is that all this sounds like hyperbole until you realize the same is true for all the BS ideas that got (and still are) peddled since 2017 (wink-wink nudge-nudge $iota the blockchain that isn't one and that manages to invent the only hash-function which isn't collision resistant).
  - baryphonic 6y ago
    > There literally are no valid use-cases (other than buying heroin) in crypto today. Even as a hyperbole, this seems odd. The various decentralized name resolution blockchains seem to be a valid use case, for instance. Sure, it's still possible for project politics to cause issues (like the hard fork), it's just significantly costlier. Crypto has been overhyped, but I think it's a mistake to say that there are "literally no valid use-cases," especially in a world where FAANGs seem to want to exert ever-greater control over what we can do with their systems. Crypto has a horrible UX at the moment ("first, you need to set up your wallet...") and it has an underdeveloped infrastructure, resulting in awkward centralized single points of failure (e.g. crypto exchanges). On top of that, no one has developed a "killer app" that could appeal to the mainstream computer user. As a consequence, the prices of crypto vary wildly, since the "real economy" seems to be dwarfed by simple speculation. The whole space right now is filled with criminals and ideologues and scalawags. (I imagine most of the ICO fraudsters have run out of coin.)
olodus 6y ago
I haven't been keeping up with the Eth / PoS development, do we have any preliminary numbers on how much energy this switch is hoped to save? Same goes with sharing, how much is it argued this will speed up the transaction process?
- rglullis 6y ago
  Validators will need to run a computer with reasonably modern specs (at least 1TB SSD, 8-16GB RAM, multiple cores) in order to collect fees and not have their funds slashed. IIRC you need to have at least 70% uptime to not lose any funds, and to be a good investment you need 99%+ uptime. If you consider that modern systems with the required specs can run on 10W, you should get ~90kWh in a year. Transaction-speed wise, there is a lot of talk about 100000+ TPS, but the general consensus seem to be that this will only be achieved with extra L2 support and that a more realistic number for "pure on-chain" throughput is in the high-hundreds / low thousands.
  - diang 6y ago
    Competing with Bitcoin's TPS in the single digits, high-hundreds/low thousands is a big leap... but still not enough to replace the higher order global currencies. In order to gain the necessary L2 support, they'll have to establish dominance relative to bitcoin with an equally lacking TPS. Seems like a "If they come, we will build it" problem.
    - rglullis 6y ago
      Plenty of L2 solutions already exist and can be used with Ethereum already. If your single comparison point is the existing banking and credit card payment networks, you can take a look at e.g, Raiden which is already deployed on mainnet and can scale with the number of the nodes participating in the network. Hundreds of thousands of payment transactions per second are already possible. The main issue is that most of them still are very complex to get fully operational, there is no big consensus among users on "what-to-use-when" and they all require a non-insignificant cost to setup in terms of all the contract transactions needed to get in and out of the chain. There is no reason to doubt that they be more mature along with ETH2 and that that L1-L2 will complement each other nicely.
mikkelam 6y ago
I honestly think eth2 will have an incredible effect. Think of all the developing countries or countries without proper financial infrastructure, even places where you do not trust your local currency. All these places will benefit hugely from a bootstrapped currency ready to be deployed for very little effort. Launching an ecommerce will suddenly be much easier for a many more people. I'm also very interested in seeing how governments will respond, the revolution WILL be coming whether they like it or not.
- rich_sasha 6y ago
  I can well imagine for politically-unstable countries this is very good. Not really sure about the rest of the world! Besides, one distant analogy: I remember reading how internet will revolutionise totalitarian governments, because it is an unstoppable river of information. Well, China, North Korea and Saudi Arabia are going strong regardless. Bitcoin/eth are great, until some crony government introduces the death penalty for using it, or sth.
  - ngcc_hk 6y ago
    The technical infra vs the conceptual architecture enabled the one sided internet per china.
- alexmingoia 6y ago
  E-commerce doesn't require digital currency. I live in a country without digital payments infrastructure, and there's lots of e-commerce (primarily via Facebook). It's all cash-on-delivery. I've ordered food, furniture, baby supplies, medicine, etc. from businesses on Facebook and pay on delivery.
  - globular-toast 6y ago
    Very interesting perspective. Most people who live with bank money can't even imagine a world without it. There is one thing a centralised digital currency makes far easier, though. It makes it easier to "print" new money and cream that off into bankers' pockets. Most of the richest people in the world are in finance.
woile 6y ago
I need 32 eth to start mining? I don't have that money to spare haha Is there a place to start with less?
ajkdhcb2 6y ago
When I go through the steps to see what needs to be done to be a validator it says "terms of use are entered into by and between you and the Ethereum Foundation". So it's a centralized joke?
- ikken 6y ago
  You're referring to the Terms of the website, not "Ethereum 2.0". It's like agreeing to the Terms of Use of a Bitcoin wallet. It doesn't mean that Bitcoin is a "centralized joke".
- Ruphin 6y ago
  The Terms of Service cover the usage of the Launchpad website. The website is a service created by the Ethereum Foundation to guide users through the procedures required to join the Ethereum 2.0 network as a validator. You don't need to use this website (or agree to the TOS for the website) to participate in the Ethereum 2.0 network. The technical requirements and procedures are fully documented in other places (in a more technical less user friendly manner). I imagine they added a ToS to avoid "I used your website and I lost all my money"-type lawsuits.
  - krageon 6y ago
    They could just as easily have released user-friendly documentation without a ToS. Terms of Service are a way to oppress your users and are never a good sign.
    - Ruphin 6y ago
      The Ethereum Foundation is a legal entity, and as such they have to implement legal protections to any work they produce, or people will sue them. This is unfortunately how the current legal system works. The ToS basically says you're not allowed to do illegal things, and they are not liable for any damages caused by using the website. In addition they have some restrictions in place in order to protect users of the website from fraud/phishing and other damage. Do you think this is unnecessarily oppressive?
keymone 6y ago
ethereum moving to pos is less important than and obscures their admission of failure at developing a scalable "world computer" as described in original "whitepaper". they've moved on from maintaining essentially a serializable database to some "sharded" contraption with vague description of how cross-shard synchronization should work and how conflicts will be resolved. and most importantly, none of this has been tested in real world, so i'm grabbing some popcorn and getting ready for the show.
- cryptohead 6y ago
  When have they claimed to develop a scalable world computer? I think that was always just a misunderstanding by people who didn't understand the concept.
thojest 6y ago
[I deleted this post because it probably is against the HN guidelines]
- thatguy0900 6y ago
  And noone on reddit or Twitter is shilling?
  - thojest 6y ago
    Of course, but there is also the valuable information you have to extract yourself, which is not the case for this "news sites"
- woahAcademia 6y ago
  And you didn't mention anything wrong? Btw I believe these posts are against the mod rules.
  - thojest 6y ago
    Ahh sry, ok. Just wanted to share my impression. Then please can some mod delete my original post?
- swyx 6y ago
  twitter is too noisy for me too. is there a dispassionate, neutral-ish newsletter covering all this that you would recommend?
- lawn 6y ago
  There's plenty of misinformation on Twitter and Reddit too. In fact they're overflowing with trolls, shills and censorship and you need to be very particular in the way you approach the information if it's to be at all useful.
  - thojest 6y ago
    absolutely, but at least there is some valuable information to be extracted.
BMSmnqXAE4yfe1 6y ago
Forget ETH, XRP pumping much harder, why is that?
- dylkil 6y ago
  Anecdotal, but I have had 3 separate friends who are not techie/finance at all come to me with an amazing investment opportunity someone has shown them. An article[1] on how XRP is going to become the reserve currency for the world is going around the get rich quick circles. In short its being pumped by scammers. [1]https://medium.com/@mark_91397/xrp-will-be-a-world-reserve-currency-64635b515960 https://medium.com/@mark_91397/xrp-will-be-a-world-reserve-c...
  - BMSmnqXAE4yfe1 6y ago
    Well, holders of any particular coin are calling all the other coins a scam ... an example of how truth is hard to come by in a world governed by interests.
woahAcademia 6y ago
I stopped trusting ethereum after EIP669. Ethereum used to have a soft cap of 100M coins. They removed the cap. Ethereum is no Bitcoin. It's more akin to dogecoin/fiat with its infinite money. Hope POS works so Bitcoin can adopt it.
- tromp 6y ago
  Nothing wrong with uncapped supply. It's still disinflationary. In fact, it ends up with zero inflation when tail emission matches inevitable coin loss. There is however something wrong with defaulting on promises made at launch.
  - woahAcademia 6y ago
    Yes this is precisely the issue. I don't mind various types of currency, but when you buy 50 of the ~100M ethereum you expect it to remain somewhat proportional in value. That didn't happen, mere years after its launch they blew through the cap and are already 15% over.
    - vvillena 6y ago
      Remember that all cryptocurrencies run under a consensus agreed between all its participants. This consensus is always subject to change: the Bitcoin network could decide to allow for 10 million more BTC at any moment. They just choose not to do it. Ethereum builtin limits work as an incentive to force timely decisions. The initial 100M limit, and the difficulty bombs (which cause "ice ages") ensured that the initial versions of Ethereum wouldn't be able to run forever: mining rewards would stop, or mining would be too difficult to be profitable. This impending doom ensures the protocol needs to be updated, and once that conversation regarding the new consensus is active, it is easier to bring in new changes and improvements too. One final point: whoever bought ETH at any point up to mid 2017 has seen massive returns. It could be argued that this is precisely because of the changes Ethereum has undergone over time, and that keeping close to the initial design would have been worse.
- drcode 6y ago
deleted 6y ago
[deleted]
xoralkindi 6y ago
Blockchains have a few problems that I think make them unsuitable for internet money, I know more about Bitcoin but I think this applies to Ethereum also: - Early adapter become extremely rich (Developers) - Transaction costs O(n) network complexity - Every operation in the network result in no more than O(polylog(n)) - Energy Issues (Proof of Work) - Speculative markets making the coins not usefull for day to day shopping - Scams - More Scams - Pseudo Decentralization (centralize around Ethereum Foundation... Blockstream, Miners, Dev environments (Github), ISPs) - Scams
- premek 6y ago
  ok
- mhluongo 6y ago
  Hard to know which piece of misinformation to respond to. If you skip all the subjective stuff and whether "works for shopping" is the goal.. both of your big-O comments have counter examples (check out Coda for 1) as does your energy comment (Eth2 is an effort to switch to Proof of Stake, amongst other upgrades).
  - xoralkindi 6y ago
    > both of your big-O comments have counter examples (check out Coda for 1) That's the typical blockchain reply, suggest yet another ICO out of the ocean of ICOs out there. > as does your energy comment (Eth2 is an effort to switch to Proof of Stake, amongst other upgrades) I don't know muuch about Eth2 so I will give you that one.
    - mhluongo 6y ago
      > suggest yet another ICO out of the ocean of ICOs out there. I've been working in the space for 6 years. I give no craps about the asset, but yes, I think cutting edge cryptography is fascinating. I tend to agree that the vast majority of "work" in the space is garbage, as are the majority of assets.
  - 6y ago
smarx007 6y ago
https://ethereum.org/en/eth2/vision/ https://ethereum.org/en/eth2/vision/ for those who like me need an explainer what Eth2 is.
- koheripbal 6y ago
  > The Beacon Chain lets us randomly assign validators to different shards This is interesting. Cross-shard attacks were a major flaw in shard designs. How is this solved exactly and who is "us" in this sentence? How can the network force a miner/validator to use a specific random shard?
  - drcode 6y ago
    There's a random number generator in the root chain (i.e. the beacon chain) and validators are assigned shortly before validation and may require validation of any random shard. The validator can validate blocks in a "stateless" manner, meaning that they don't have to validate the entire shard but can still validate a single block (which is necessary, because if validators needed data for all shards it would destroy the scaling benefits)
    - ishishkin 6y ago
      There is no validation of blocks in a "stateless manner". Network is secured by those validators who know what they validate.
      - drcode 6y ago
        Incorrect https://docs.ethhub.io/ethereum-roadmap/ethereum-2.0/stateless-clients/ https://docs.ethhub.io/ethereum-roadmap/ethereum-2.0/statele...
        ishishkin 6y ago
        Is that a link to fairy tales from Vitalik? The fact that "stateless client" is written in Ethereum 2.0 roadmap is an evidence that this project has no future.
jungong 6y ago
The genesis block is now set!
ngcc_hk 6y ago
Great to see this happen. More env friendly. And no longer fighting with russia and china for ant miner and cheap electricity.
grubles 6y ago
Ethereum just had a consensus failure that caused a loss of money and shut down transfers at one of the largest cryptocurrency exchanges in the world (Binance). The minimum deposit for ETH2 is a very small percentage of the total premined (i.e. out of thin air) ETH that insiders were beneficiaries of. Take this event with a grain of salt, even the creator of Ethereum says the meat and bones of ETH2 is still years away.
ilaksh 6y ago
Ethereum has always been in my mind a technology that has some of the most potential to improve our world by revolutionizing money, business, and even government. I hope that enough other people also see that potential as Ethereum 2 rolls out over the next year or two.

271 points by leesalminen 6y ago

TLDR; The transition from Eth1->Eth2 requires the following steps: 1. Network operators (stakers) deposit at least 524,288 ETH in a special contract 2. The early Eth2 blockchain (the "beacon chain") launches Dec 1st 3. The Eth1 blockchain will be merged into Eth2 (details TBD) 4. Other features will be added to make Eth2 fully functional (sharding being the biggest feature) Just a few minutes ago, step 1 has been accomplished.

newyankee 6y ago
Does this mean no more mining and waste of electricity ?
- seibelj 6y ago
  Eventually yes, but mining isn’t a “waste” of electricity any more than any electricity used for any essential service is. Isn’t all electricity effectively wasted if the same service can be offered for less electricity? Ethereum (and bitcoin) provide a service, and that service is protected using electricity.
  - emilsedgh 6y ago
    If there were refrigerators that could work without electricity with no the same set of capabilities, then any refrigerator still using electricity would be considered wasteful.
    - beaner 6y ago
      I'm not saying that proof-of-stake is bad, but it does change the way the network functions, because it locks capital and therefore affects the velocity of money in the network. It also changes the distribution of mined coin. Whereas currently it takes an equal mining cost to reap an equal reward, proof-of-stake rewards those who already have enough to stake. This is essentially a recreation of the inflation system we have in the fiat world, where printed money first goes to the government, who can spend it at its current value, eventually having it entropy out to other users through spending, at reduced purchasing power. This makes the rich richer, and increases inequality of savings in the network. So it's not exactly the same refrigerator, so to speak.
      - viraptor 6y ago
        > proof-of-stake rewards those who already have enough to stake As opposed to people who have money buying mining hardware to make more money that can be invested into mining hardware?
        beaner 6y ago
        Yes, that's how most businesses work. You start with a capital investment, often times through a loan, and through smart management, make a profit on the margin, that you can choose to reinvest to stay competitive. Proof-of-stake is completely unlike this. People who "have" are not required to exchange any effort to reap new reward. They retain purchasing power while the "have-nots" lose purchasing power. I dunno if I struck a nerve with you with these points about proof of stake or something. I'm not completely against it - I think it should be tried, and Ethereum is a great network to try it with. But I also don't think it's completely perfect. I also think proof-of-work is very defensible and likely to succeed in unexpected ways.
        viraptor 6y ago
        I wouldn't say it's completely unlike. I don't think renting out some mining hardware for near-guaranteed return is any different in effort. It's about the same as putting money in an investment fund. PoW, PoS, and other investments practically end up with: until you withdraw the money you can invest your existing wealth to get returns, without real effort.
        beaner 6y ago
        Proof-of-stake requires the majority of what is mined has to be sold on the open market. This redistributes mined coin to any user anywhere, rich or poor. If you mine and do not sell, you perpetually consume and fail in short order. Proof-of-stake doesn't require this natural, market-driven redistribution. It exchanges it for an inflationary process that further separates the rich and the poor. They're fundamentally different.
    - globular-toast 6y ago
      If that happened then we'd just start using the electricity for something non-essential instead. Humanity is not interested in efficiency for the sake of reducing footprint. Humanity is only interested in more. If anything, fridges using more electricity means less electricity wasted (assuming refrigeration is essential and not a waste). This pattern seems to be everywhere. Cheaper electricity: more electricity used. Bigger roads: more miles travelled. More efficient engines: bigger, more powerful cars. Plastic recycling: more plastic used. I challenge you to find any improvement in efficiency which has led to a reduced footprint.
      - ehou 6y ago
        Light bulbs. I do not want or have “more light” in my house but do have a lower energy bill after replacing them by LED versions
        globular-toast 6y ago
        And the money you saved will just sit in an account until you die, I presume? What's more likely is you have spent the money saved on something else.
  - brazzy 6y ago
    The problem is that mining can never reduce its energy usage. Any efficiency gains are necessarily eaten by increased difficulty. And in fact, energy usage has to incease in proportion with the value of the network.
    - keymone 6y ago
      you're on to something here. what if i told you that the constant level of energy spent is the level of security bitcoin users demand by virtue of buying it at current price level? would you say constant provision of certain level of security is waste?
      - brazzy 6y ago
        > what if i told you that the constant level of energy spent is the level of security bitcoin users demand by virtue of buying it at current price level? I'd say that you're wrong because security is not the primary thing they're buying. > would you say constant provision of certain level of security is waste? I would say that doing so through a constantly increasing level of energy use is indeed a waste.
        keymone 6y ago
        > security is not the primary thing they're buying sounds like speculation. it's a major desirability factor in bitcoin. > constantly increasing level of energy use is indeed a waste the more money you store in a vault - the more security it needs for you to sleep well. you wouldn't lock a $5000 bike with $5 lock. so difficulty increase correlates very much with amount of wealth poured into bitcoin. edit: typo
        brazzy 6y ago
        > sounds like speculation. it's a major desirability factor in bitcoin. No, that's a plain fact. Nobody ever buys security as an end unto itself. You buy security to protect the thing you really want. Which in the case of Bitcoin is by a vast majority "getting rich". > you wouldn't lock a $5000 bike with $5 lock. so difficulty increase correlates very much with amount of wealth poured into bitcoin. It correlates, but not in direct proportion. With any other kind of security, you don't need to spend 10 times as much to protect a 10 times higher value, and there is a possibility of security getting cheaper due to advances in technology.
- ibz 6y ago
  Said somebody typing a comment online? You can always go back and live in a cave if you think modern society is "too wasteful".
- beaner 6y ago
  Just to riff on this idea, despite inevitable pushback: Bitcoin's proof-of-work is basically a conversion of energy directly into money. This pushes competition towards cheaper and cheaper sources of energy. First it's finding jurisdictions that subsidize it, then it's creating your own cheaper energy sources. Proof-of-work incentivizes cheap & renewable energy investment. The penultimate phase is custom off-grid mining farms that power themselves via their own renewables. The endgame is that all energy companies will primarily be Bitcoin mining companies, feeding their excess renewable energy into the grid to power homes, etc.
  - tikej 6y ago
    Cool, except so-called renewable energy sources still built using non-renewable materials. There also physical limits to efficiency of energy transformation and slightly less heat loss per unit of energy with much more energy production is not exactly what climate needs right now.
    - beaner 6y ago
      Haven't heard these points before but I'm not sure that they apply to proof-of-work specifically.
    - dane-pgp 6y ago
      "The estimated calculations presented in this work prove that the total power produced by us was 0.0414% in 2000 and 0.0577% in 2017 of the global solar power reaching the Earth’s surface"[0]. So even if Bitcoin mining were to cause global electricity production to increase by an order of magnitude, it would still be a rounding error compared to the amount of global warming caused by the Sun directly. Thinking about it thermodynamically, though, in a future where Bitcoin mining uses only excess solar and wind energy, it wouldn't be adding any heat to the planet because that energy would have become heat anyway. [0] https://www.mdpi.com/1996-1073/12/16/3069/pdf https://www.mdpi.com/1996-1073/12/16/3069/pdf
      - tikej 6y ago
        Ok, of course true that sum of heat from sun that reaches earth remains constant no matter whether we use it. However, how it’s stored/used on the earth is another matter. E.g. if it’s absorbed by plants/fungi/other life forms and stored as biomass, part of it doesn’t contribute to heating of the atmosphere/oceans, contrarily to when it’s converted to electricity (where large part is lost due to heating of the solar panels) and then used to computing, where from physics perspective it’s mostly heating (only tiny part is converted to useful work). Also what about the Manufacruring/production of devices to convert solar/wind energy to electricity and to mine bitcoins? It’s based on non-renewable elements (of course any chemical process is reversible given enough energy but Entropy still grows mercilessly) and requires a lot of extra energy. EDIT: as far as we know, thermodynamically all energy will become heat at the end (although not sure if it should be called heat, since there will be no flux). However, we as humanity are/should be quite concerned first about decades and earth’s atmosphere/oceans (and connected parts) not millennia and energetically balance Earth as whole to come. In principle energy from sun could also be stored in form of chemical bonds energy (as it’s the case for biomass) or even nuclear energy (yup, sun-powered nuclear fusion sounds unlikely but why not ;). Then biomass (less efficiently) or nuclei/atoms could be ejected from earth allowing to disperse sun’s thermal energy somewhere else.
- keymone 6y ago
  zero electricity is wasted on PoW cryptocurrencies. energy consumption is equivalent to constant maintenance of security at the level demanded by market.
  - creddit 6y ago
    I mean I guess this depends on how one defines waste but under definitions I generally come across, if you could get the same level of security for less electricity in a new scheme, then the old scheme is wasting electricity.
    - keymone 6y ago
      sure, if you could. but the value is in the eyes of the beholder. if the market genuinely believed that to be the case - PoW currencies wouldn't be worth anything, so far that isn't the case, so claiming that PoW is wasteful is disingenuous at best. p.s. somebody really dislikes my opinions, as i'm banned from commenting on HN for the last couple hours or so :D
      - creddit 6y ago
        You write about markets like they are omnipotent, benevolent gods which they aren't. Markets fail all the time. It's a large part of what economists spend their time studying. Take an intro to game theory course and you can find all sorts of structures that lead to non-socially beneficial outcomes, the prisoner's dilemma being a classic example. There's nothing about markets nor cryptocurrencies that guarantees that they efficiently select for the currency that requires the least electricity. You completely ignore social alignment issues as well as inertia.
        mercenario 6y ago
        It's pretty simple, if it costs you 1 dollar to mine a bitcoin and someone (the market) wants to buy that bitcoin for 2 dollars, that cost is worth it. It doesn't matter what that cost is, if it's 1 dollar in energy or 1 dollar in wages or whatever, it costs $1 and you sell by $2, you profit, the cost was worth it.
- globular-toast 6y ago
  Probably not. Proof of work seems to be essential for a successful currency. Go visit the City of London or the Financial District of Manhattan to check out the proof of work of the current financial industry. Millions of people busying around and spending time in huge buildings that are---quite evidently now during the pandemic---completely unnecessary. If you really want to stop waste then try to convince people to stop worrying about whether others have more stuff than they do. John Lennon wrote a well-known song about this idea. You could try imagining it too. Unfortunately you've got billions of years of evolution against you, but good luck! Alternatively, if you can figure out a way to do it without proof of work then you'll stop all of this waste while still appealing to our animalistic instincts. But, then again, who are you to talk about waste anyway? What makes your life not a waste of energy? Don't you consume food every single day?
  - rcxdude 6y ago
    This is, to put it mildly, bollocks. Bitcoin uses more energy than the entire finance industry to supervise far less capital and conduct far fewer transactions (by multiple orders of magnitude). You are equivocating by equating levels of inefficiency which differ so drastically you are either deliberately misleading people or have been mislead yourself.
    - globular-toast 6y ago
      I didn't say a single thing about efficiency or bitcoin consumption vs banking industry consumption.
- wildsatchmo 6y ago
  Funny nobody complains about the energy consumed by actual banks and other services Bitcoin would replace, which is much higher. In those circumstances they can understand it's not a waste at all, but a cost of providing a valuable service. I don't think POS is an adequate replacement. POW was an intentional design choice because of the highly competitive environment that it creates.
  - shermanmccoy 6y ago
    Do you have some modelling, or any credible reference to back up your assertion that the energy used by banks would be higher than a Bitcoin blockchain?
    - Applejinx 6y ago
      And if so, would you provide a projection for the relative energy useage of traditional banking vs. bitcoin for a linearly expanding money supply extended out indefinitely?
    - wildsatchmo 6y ago
      Even if I did provide you some report showing banks use more than Bitcoin (which is still true for now) it's only a fraction of the big picture. Although banks are a good example of this effect, Bitcoin doesn't JUST improve banking. As this plays out, mining infrastructure provides a shared resource that can be used by MILLIONS of companies, among which are banks who manage massive datacenters requiring humans and their associated energy consumption, the cost for audits, compliance, card readers, and other things that Bitcoin makes effortless. Surely unlocking efficiency offsets power consumption, and at scale the efficiency improvements can be astronomical. An accurate figure on this probably does not even exist, especially considering the lack of imagination with respect to Bitcoin use-cases. Not to mention the biggest energy consumers are also the best in the world at reducing their consumption out of competitive necessity.
  - nickik 6y ago
    Bitcoin is not a replacement for banks.
- koheripbal 6y ago
  That is generally true of any proof-of-work cryptocurrencies.
- dgrin91 6y ago
  It means orders of magnitude less. The part of the blockchain that proves your transaction was valid is now (oversimplifying here) just a boolean check instead of running a hash algo over and over
  - nwah1 6y ago
    I think a better way to say it is that it moves from a trustless system to a system that trusts based on some criteria. That criteria is usually how many coins one has. Since the original bitcoin concept was solving the byzantine generals problem, the entire point of all the cryptographic work was to be trustless. If you are cool with trust, you can have reversibility, lost password retrieval, anti-money laundering checks, and all the other features of the existing financial system. It would be a carbon copy of that, of course, which would raise the question of what problem this system is solving for people. But I understand that Ethereum is about distributed computing, not transactions, so the calculus may be different. The point being to replace AWS, not Western Union. I'm personally not sold on why a distributed trust algorithm would be superior to trusting AWS or Azure, given that those services can give you a refund for errors, are subject to the legal system, have a brand reputation to maintain, and so on.
    - pkulak 6y ago
      I guess I don't understand how proof of stake uses trust while proof of work doesn't. They seem very similar to me. I could argue that with Bitcoin you have to trust all of these large pools that are constantly flirting with 50% of the hashing power.
      - nwah1 6y ago
        That is a good point. Although, in principle Proof of Stake could use any number of algorithms, and thus the trust could be based on something other than who has the most resources. In general for distributed systems, trusting based on reputation is a common idea. "Circles of trust" was how the original Ripple concept was explained. The important question is not which of these ideas is better than each other, but which is better than existing infrastructure.
- macawfish 6y ago
  Not to mention GPUs! Can you believe how many GPUs have been cooked by this scheme? I got a water-cooled GTX 1080 almost 5 years ago on Craigslist for $500. Usually old things like that get cheaper as time goes by, but not GPUs. Nowadays those things are going for like $800. I was hoping to upgrade to an RTX2080 or something (also a few years old now) but they're like $1000! I can't help but think that cryptocurrency mining is mostly responsible. And supposedly long term mining just fries GPUs, so the used market is dubious anyway.
  - zymhan 6y ago
    I was amazed that my 5 y/o GPU is still selling for half it's original price. I was considering buying a second one for Crossfire, but maybe selling it is a better idea.
  - randtrain34 6y ago
    the 3070 is $499, roughly equivalent to the 2080 TI
    - pteraspidomorph 6y ago
      Out of stock around these parts. It has been for weeks. All stores, all brands. There are a few units left from dubious brands if I order them all the way from Amazon Germany.
  - Forbo 6y ago
    Most serious mining operations will typically undervolt their GPUs for increased efficiency and don't experience nearly as much temperature fluctuation. Buying a used mining GPU isn't nearly as bad of an idea as it sounds on the surface.
- nootropicat 6y ago
  Yes. For comparison, multiplying the value of total block rewards for btc (inflation + fees) by 365, bitcoin extracts about $6.2B per year from buyers just to exist. Eth2 is going to be extremely light, and is going to run fine on a ~$600 NUC that consumes about 10W. At 20% annual amortization, $0.15/kWh and 10k different validators (people), the total cost of running eth2 is... $1.3M. That's a mind-boggling difference of 4700x. Real costs may be a bit larger as some individual stakers can be less efficient (like running on a 150W average power pc) but compared to what bitcoin consumes - still a rounding error.
- llcoolv 6y ago
  The electricity is used to verify transactions, which has a massive added value many times exceeding the cost of the electricity invested. Calling this a waste of electricity is the same as calling the hundreds of thousands (if not more than a million) of employess of central banks, regulation authorities, payment processors, etc waste of air. Really really naive and childish. P.S. Did anyone ever calculate the carbon footprint of all these people whose jobs are going to be taken over and compared it? I haven't done the approximation/calculation, but I am pretty sure that cryptocurrencies are going to be a massive improvement over the current system in that aspect as well.
- mercenario 6y ago
  Do you consider the energy spent mining gold a waste? This electricity is necessary to mine bitcoin. It is the same principle. If you have a more efficient way to mine bitcoin, just do it, you will be rich, or just tell everyone else and everybody will use it.
skybrian 6y ago
Does anything change about the “dark forest” problem?
DyslexicAtheist 6y ago
I stopped taking Ethereum serious and consider anything that comes from the Gavin Woods / Vitalik Buterin twotter handles as pure garbage (at least from a technological pov). How can anyone take these people serious after they ended up hard forking? They literally had to go against everything they said and stood for by manually intervening or throw the investments of thousands under the bus. Either you're a decentralized system ruled by consensus or you have top-down hirarchy but you can't claim both. They proofed that a human would intervene any time the proverbial sh!t hits the fan which makes them no better than an expensive but centrally controlled set-up of an RDBMS. Ethereum is snake-oil and if I see a CV that says blockchain without making crystal clear what they're doing in that space it goes immediately in the recycle bin. There literally are no valid use-cases (other than buying heroin) in crypto today. And anyone who peddles this stuff always looks like a shill. the tragic is that all this sounds like hyperbole until you realize the same is true for all the BS ideas that got (and still are) peddled since 2017 (wink-wink nudge-nudge $iota the blockchain that isn't one and that manages to invent the only hash-function which isn't collision resistant).
- baryphonic 6y ago
  > There literally are no valid use-cases (other than buying heroin) in crypto today. Even as a hyperbole, this seems odd. The various decentralized name resolution blockchains seem to be a valid use case, for instance. Sure, it's still possible for project politics to cause issues (like the hard fork), it's just significantly costlier. Crypto has been overhyped, but I think it's a mistake to say that there are "literally no valid use-cases," especially in a world where FAANGs seem to want to exert ever-greater control over what we can do with their systems. Crypto has a horrible UX at the moment ("first, you need to set up your wallet...") and it has an underdeveloped infrastructure, resulting in awkward centralized single points of failure (e.g. crypto exchanges). On top of that, no one has developed a "killer app" that could appeal to the mainstream computer user. As a consequence, the prices of crypto vary wildly, since the "real economy" seems to be dwarfed by simple speculation. The whole space right now is filled with criminals and ideologues and scalawags. (I imagine most of the ICO fraudsters have run out of coin.)

olodus 6y ago

I haven't been keeping up with the Eth / PoS development, do we have any preliminary numbers on how much energy this switch is hoped to save? Same goes with sharing, how much is it argued this will speed up the transaction process?

rglullis 6y ago
Validators will need to run a computer with reasonably modern specs (at least 1TB SSD, 8-16GB RAM, multiple cores) in order to collect fees and not have their funds slashed. IIRC you need to have at least 70% uptime to not lose any funds, and to be a good investment you need 99%+ uptime. If you consider that modern systems with the required specs can run on 10W, you should get ~90kWh in a year. Transaction-speed wise, there is a lot of talk about 100000+ TPS, but the general consensus seem to be that this will only be achieved with extra L2 support and that a more realistic number for "pure on-chain" throughput is in the high-hundreds / low thousands.
- diang 6y ago
  Competing with Bitcoin's TPS in the single digits, high-hundreds/low thousands is a big leap... but still not enough to replace the higher order global currencies. In order to gain the necessary L2 support, they'll have to establish dominance relative to bitcoin with an equally lacking TPS. Seems like a "If they come, we will build it" problem.
  - rglullis 6y ago
    Plenty of L2 solutions already exist and can be used with Ethereum already. If your single comparison point is the existing banking and credit card payment networks, you can take a look at e.g, Raiden which is already deployed on mainnet and can scale with the number of the nodes participating in the network. Hundreds of thousands of payment transactions per second are already possible. The main issue is that most of them still are very complex to get fully operational, there is no big consensus among users on "what-to-use-when" and they all require a non-insignificant cost to setup in terms of all the contract transactions needed to get in and out of the chain. There is no reason to doubt that they be more mature along with ETH2 and that that L1-L2 will complement each other nicely.

mikkelam 6y ago

I honestly think eth2 will have an incredible effect. Think of all the developing countries or countries without proper financial infrastructure, even places where you do not trust your local currency. All these places will benefit hugely from a bootstrapped currency ready to be deployed for very little effort. Launching an ecommerce will suddenly be much easier for a many more people. I'm also very interested in seeing how governments will respond, the revolution WILL be coming whether they like it or not.

rich_sasha 6y ago
I can well imagine for politically-unstable countries this is very good. Not really sure about the rest of the world! Besides, one distant analogy: I remember reading how internet will revolutionise totalitarian governments, because it is an unstoppable river of information. Well, China, North Korea and Saudi Arabia are going strong regardless. Bitcoin/eth are great, until some crony government introduces the death penalty for using it, or sth.
- ngcc_hk 6y ago
  The technical infra vs the conceptual architecture enabled the one sided internet per china.
alexmingoia 6y ago
E-commerce doesn't require digital currency. I live in a country without digital payments infrastructure, and there's lots of e-commerce (primarily via Facebook). It's all cash-on-delivery. I've ordered food, furniture, baby supplies, medicine, etc. from businesses on Facebook and pay on delivery.
- globular-toast 6y ago
  Very interesting perspective. Most people who live with bank money can't even imagine a world without it. There is one thing a centralised digital currency makes far easier, though. It makes it easier to "print" new money and cream that off into bankers' pockets. Most of the richest people in the world are in finance.

woile 6y ago

I need 32 eth to start mining? I don't have that money to spare haha Is there a place to start with less?

ajkdhcb2 6y ago

When I go through the steps to see what needs to be done to be a validator it says "terms of use are entered into by and between you and the Ethereum Foundation". So it's a centralized joke?

ikken 6y ago
You're referring to the Terms of the website, not "Ethereum 2.0". It's like agreeing to the Terms of Use of a Bitcoin wallet. It doesn't mean that Bitcoin is a "centralized joke".
Ruphin 6y ago
The Terms of Service cover the usage of the Launchpad website. The website is a service created by the Ethereum Foundation to guide users through the procedures required to join the Ethereum 2.0 network as a validator. You don't need to use this website (or agree to the TOS for the website) to participate in the Ethereum 2.0 network. The technical requirements and procedures are fully documented in other places (in a more technical less user friendly manner). I imagine they added a ToS to avoid "I used your website and I lost all my money"-type lawsuits.
- krageon 6y ago
  They could just as easily have released user-friendly documentation without a ToS. Terms of Service are a way to oppress your users and are never a good sign.
  - Ruphin 6y ago
    The Ethereum Foundation is a legal entity, and as such they have to implement legal protections to any work they produce, or people will sue them. This is unfortunately how the current legal system works. The ToS basically says you're not allowed to do illegal things, and they are not liable for any damages caused by using the website. In addition they have some restrictions in place in order to protect users of the website from fraud/phishing and other damage. Do you think this is unnecessarily oppressive?

keymone 6y ago

ethereum moving to pos is less important than and obscures their admission of failure at developing a scalable "world computer" as described in original "whitepaper". they've moved on from maintaining essentially a serializable database to some "sharded" contraption with vague description of how cross-shard synchronization should work and how conflicts will be resolved. and most importantly, none of this has been tested in real world, so i'm grabbing some popcorn and getting ready for the show.

cryptohead 6y ago
When have they claimed to develop a scalable world computer? I think that was always just a misunderstanding by people who didn't understand the concept.

thojest 6y ago

[I deleted this post because it probably is against the HN guidelines]

thatguy0900 6y ago
And noone on reddit or Twitter is shilling?
- thojest 6y ago
  Of course, but there is also the valuable information you have to extract yourself, which is not the case for this "news sites"
woahAcademia 6y ago
And you didn't mention anything wrong? Btw I believe these posts are against the mod rules.
- thojest 6y ago
  Ahh sry, ok. Just wanted to share my impression. Then please can some mod delete my original post?
swyx 6y ago
twitter is too noisy for me too. is there a dispassionate, neutral-ish newsletter covering all this that you would recommend?
lawn 6y ago
There's plenty of misinformation on Twitter and Reddit too. In fact they're overflowing with trolls, shills and censorship and you need to be very particular in the way you approach the information if it's to be at all useful.
- thojest 6y ago
  absolutely, but at least there is some valuable information to be extracted.

BMSmnqXAE4yfe1 6y ago

Forget ETH, XRP pumping much harder, why is that?

dylkil 6y ago
Anecdotal, but I have had 3 separate friends who are not techie/finance at all come to me with an amazing investment opportunity someone has shown them. An article[1] on how XRP is going to become the reserve currency for the world is going around the get rich quick circles. In short its being pumped by scammers. [1]https://medium.com/@mark_91397/xrp-will-be-a-world-reserve-currency-64635b515960 https://medium.com/@mark_91397/xrp-will-be-a-world-reserve-c...
- BMSmnqXAE4yfe1 6y ago
  Well, holders of any particular coin are calling all the other coins a scam ... an example of how truth is hard to come by in a world governed by interests.

woahAcademia 6y ago

I stopped trusting ethereum after EIP669. Ethereum used to have a soft cap of 100M coins. They removed the cap. Ethereum is no Bitcoin. It's more akin to dogecoin/fiat with its infinite money. Hope POS works so Bitcoin can adopt it.

tromp 6y ago
Nothing wrong with uncapped supply. It's still disinflationary. In fact, it ends up with zero inflation when tail emission matches inevitable coin loss. There is however something wrong with defaulting on promises made at launch.
- woahAcademia 6y ago
  Yes this is precisely the issue. I don't mind various types of currency, but when you buy 50 of the ~100M ethereum you expect it to remain somewhat proportional in value. That didn't happen, mere years after its launch they blew through the cap and are already 15% over.
  - vvillena 6y ago
    Remember that all cryptocurrencies run under a consensus agreed between all its participants. This consensus is always subject to change: the Bitcoin network could decide to allow for 10 million more BTC at any moment. They just choose not to do it. Ethereum builtin limits work as an incentive to force timely decisions. The initial 100M limit, and the difficulty bombs (which cause "ice ages") ensured that the initial versions of Ethereum wouldn't be able to run forever: mining rewards would stop, or mining would be too difficult to be profitable. This impending doom ensures the protocol needs to be updated, and once that conversation regarding the new consensus is active, it is easier to bring in new changes and improvements too. One final point: whoever bought ETH at any point up to mid 2017 has seen massive returns. It could be argued that this is precisely because of the changes Ethereum has undergone over time, and that keeping close to the initial design would have been worse.
drcode 6y ago

deleted 6y ago

[deleted]

xoralkindi 6y ago

Blockchains have a few problems that I think make them unsuitable for internet money, I know more about Bitcoin but I think this applies to Ethereum also: - Early adapter become extremely rich (Developers) - Transaction costs O(n) network complexity - Every operation in the network result in no more than O(polylog(n)) - Energy Issues (Proof of Work) - Speculative markets making the coins not usefull for day to day shopping - Scams - More Scams - Pseudo Decentralization (centralize around Ethereum Foundation... Blockstream, Miners, Dev environments (Github), ISPs) - Scams

premek 6y ago
ok
mhluongo 6y ago
Hard to know which piece of misinformation to respond to. If you skip all the subjective stuff and whether "works for shopping" is the goal.. both of your big-O comments have counter examples (check out Coda for 1) as does your energy comment (Eth2 is an effort to switch to Proof of Stake, amongst other upgrades).
- xoralkindi 6y ago
  > both of your big-O comments have counter examples (check out Coda for 1) That's the typical blockchain reply, suggest yet another ICO out of the ocean of ICOs out there. > as does your energy comment (Eth2 is an effort to switch to Proof of Stake, amongst other upgrades) I don't know muuch about Eth2 so I will give you that one.
  - mhluongo 6y ago
    > suggest yet another ICO out of the ocean of ICOs out there. I've been working in the space for 6 years. I give no craps about the asset, but yes, I think cutting edge cryptography is fascinating. I tend to agree that the vast majority of "work" in the space is garbage, as are the majority of assets.
- 6y ago

smarx007 6y ago

https://ethereum.org/en/eth2/vision/ https://ethereum.org/en/eth2/vision/ for those who like me need an explainer what Eth2 is.

koheripbal 6y ago
> The Beacon Chain lets us randomly assign validators to different shards This is interesting. Cross-shard attacks were a major flaw in shard designs. How is this solved exactly and who is "us" in this sentence? How can the network force a miner/validator to use a specific random shard?
- drcode 6y ago
  There's a random number generator in the root chain (i.e. the beacon chain) and validators are assigned shortly before validation and may require validation of any random shard. The validator can validate blocks in a "stateless" manner, meaning that they don't have to validate the entire shard but can still validate a single block (which is necessary, because if validators needed data for all shards it would destroy the scaling benefits)
  - ishishkin 6y ago
    There is no validation of blocks in a "stateless manner". Network is secured by those validators who know what they validate.
    - drcode 6y ago
      Incorrect https://docs.ethhub.io/ethereum-roadmap/ethereum-2.0/stateless-clients/ https://docs.ethhub.io/ethereum-roadmap/ethereum-2.0/statele...
      - ishishkin 6y ago
        Is that a link to fairy tales from Vitalik? The fact that "stateless client" is written in Ethereum 2.0 roadmap is an evidence that this project has no future.

jungong 6y ago

The genesis block is now set!

ngcc_hk 6y ago

Great to see this happen. More env friendly. And no longer fighting with russia and china for ant miner and cheap electricity.

grubles 6y ago

Ethereum just had a consensus failure that caused a loss of money and shut down transfers at one of the largest cryptocurrency exchanges in the world (Binance). The minimum deposit for ETH2 is a very small percentage of the total premined (i.e. out of thin air) ETH that insiders were beneficiaries of. Take this event with a grain of salt, even the creator of Ethereum says the meat and bones of ETH2 is still years away.

ilaksh 6y ago

Ethereum has always been in my mind a technology that has some of the most potential to improve our world by revolutionizing money, business, and even government. I hope that enough other people also see that potential as Ethereum 2 rolls out over the next year or two.