Ethereum 2.0, DeFi, privacy, Internet addiction teenager Vitalik Buterin talks about industry hotspots

Ethereum co-founder Vitalik Buterin mentioned the development of the Ethereum ecology at the Ethereal Summit in Tel Aviv today.

In a conversation with Chief Asset Architect Ejaaz Ahamadeen of Digital Assets, he talked about the tremendous advances in privacy tools in recent weeks, the potential of DeFi, and the development of Ethereum 2.0.


Speaking of the preparations for Ethereum 2.0, he said that “except for the problems that occurred during the security audit, everything has been completed. The relevant clients are currently communicating with each other. The next step is to ensure that they can maintain a large-scale public network. ""

This process, known as Eth2Beaucoup, involves the simultaneous operation of seven Ethereum 2.0 clients (the upcoming upgrade of this blockchain platform) and is considered an important milestone in the development phase of Ethereum.

Buterin said:

“The next step is to make sure they can maintain a large public network. We are referring to potential tens of thousands of verifiers that aggregate large transactions.”

The conversation also mentioned rewards for verifiers (those who are willing to lock a large number of Ethereum in smart contracts) to help verify transactions on the web. Critics say the Ethereum 2.0 reward is too low to motivate the certifier to run the network.

Buterin said:

“There are many misunderstandings. Some people are struggling with 1% of the statistics. In fact, the highest reward is 1.7% per year – provided that everyone is involved in staking. In the case of a few verifiers pledge tokens, rewards Rise a little."

Buterin refers to the proceeds that the verifier can obtain after pleasing Ethereum. This rate of return is related to the number of certifiers in the network. If everyone becomes a verifier, each person will receive 1.7% of the assets they hold as a benefit. However, if only 1% of the holders become verifiers, the revenue of these verifiers will rise to 17%. But Buterin added that the specific figures are still under discussion.

Plonk: Ethereum Privacy Progress

When asked about the latest developments in privacy technology (especially the zero-knowledge proof used in currencies such as the privacy currency Zcash), he said:

“In the past three weeks, Zk-SNARKs (a way of demonstrating the existence of a transaction without a public transaction amount) has indeed made tremendous progress overall, but many people are unaware of this.”

He mentioned Plonk, a new way to create zero-knowledge proofs, which will be launched in October through the Aztec protocol (an Ethereum privacy project supported by ConsenSys). This concept reduces the complexity of creating zero-knowledge proofs and allows more people to use this technology.

“This means that thousands of people will be easy to get involved.”

DeFi is very powerful, but it also has to be fraud-proof.

Unsurprisingly, Buterin is interested in the emerging concept DeFi, a concept that is largely based on Ethereum.

“I am very excited about the potential of DeFi. Anyone, anywhere in the world, can use a system that allows them to trade with each other and bear the financial risks themselves. This is a very powerful idea that many people cannot reach. thing."

He suggested that DeFi could adopt a way to prevent the blockchain founders from raising a lot of money and then disappearing. “Public interest projects” means that users put some of their own tokens into them and use the proceeds generated by pledge these tokens to raise funds for project development, just like DeF-ICO.

The important difference here is that through this mechanism, the funds obtained by the project will be relatively small and continuous and stable, depending on the development status of the project. If a project is suspected of fraud, investors can withdraw their funds and their funds will slowly decrease.

“The focus is not on maximizing revenue, but on the benefits you get from the projects you support. This really reduces our concerns about fraud in the ICO sector.”

But Buterin also quickly pointed out the pain point of DeFi: a clear centralized back door and a predictive machine.

A centralized backdoor means that a centralized organization has complete control over a decentralized application—as recently discovered in the Compound protocol. At the same time, the oracle is the way the blockchain accesses real-world data.

"If the oracle is set by one person, then decentralization will not make much difference. This person can set the price he wants, clear it on his own, and then act first, stealing a lot of money in this way. ""

But he added that good progress is being made in the search for decentralized oracles.

World of Warcraft teaches those of Buterin

At the end of the conversation, Ahamadeen asked Buterin's love for World of Warcraft. On Buterin's own page, he talked about his love of the game, but Blizzard Entertainment, the developer of the game, changed some of the settings of his game character.

"I cried and fell asleep, and that day I realized how terrible the consequences of centralized services."

Last month, the developer released the original version of the game, World of Warcraft Classic, which was like 15 years ago – a bit like the Ethereum Classic. Ahamadeen asked, since this game has been restored, will Booter continue to play?

Buterin replied:

"If World of Warcraft moves to Ethereum, I will consider it."