On the afternoon of September 18th, the “Fifth Blockchain Global Summit” hosted by Wanxiang Blockchain Lab entered the final stage. Etafang Founder Vitalik Buterin was the keynote speaker for the keynote “Exciting Blocks” New development in the chain industry. Vitalik Buterin talked about a very wide range of content in this speech, which can be said to be comprehensive, including the upcoming progress of the blockchain industry, PoS, privacy, decentralized exchanges, wallets, etc., giving a speech to the Chinese block. Chain industry participants bring so much information.
The following is the content of the speech compiled by Babbitt (slightly deleted):
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Talking about PoS:
Let's talk about the progress of the blockchain industry in the coming months (3 to 6 months, or even 12 months) (mainly Ethereum), at least I think these things are very important. Starting with Proof of Rights (PoS), everyone has heard about PoS many times. You will see that these people are saying that PoS has been doing very well in the past year, and finally it has evolved from a concept to a thing that everyone thinks or wants to promote. Finally, there has been some progress.
The Cosmos main network was launched earlier this year. This is very good. It runs on Tendermint and is the next generation PoS algorithm. Ethereum 2.0 is also the next upgrade of the Ethereum blockchain, which will include PoS, as well as expansion technology for sharding. The sharding technology has actually been developed for many years, so long as it takes a few more months to launch. In early September, a workshop was held in Toronto. Ethereum 2.0 engineers, a total of seven teams, gathered in Toronto to bring together all Ethereum 2.0 client developers to achieve common development specifications. Let these clients communicate with each other, handle each other's blocks, and support the network together. So there is still a lot of progress, Ethereum 2.0 has not yet been launched, but it is very interesting, it is now close to launch.
We don't just think of PoS as a theory or concept, how the consensus mechanism changes, and the efficiency of the blockchain is not just at the stage of thinking. We will also think about the challenges we face. Challenges are not bad things, and challenges are inevitable. Any new system is inevitable. If you move from a paper system to a real system, there are always some challenges. For the Cosmos network, there is a very interesting economic attribute, which means that the certifier can entrust the token to him. Now these certifiers have started the price war and hope to really charge a lower price. People in the Cosmos community are not happy, because as the price war becomes more and more intense, it is not good to stay on the Internet, so everyone is worried. This is an example of how PoS protocol developers have to think about the issues that need to be addressed. This is about the decentralization of Staking. Two years ago, I only thought about it in theory. Now I can think about the extent to which it exists in the network. Ethereum 2.0 has not yet been released, but its specifications have been written . People have begun to do third-party analysis. Will the nodes that will be operated in the future be profitable, to what extent they will be profitable, how to model, the cost of hardware, where is the revenue, how much is the cost, and under what circumstances People will be willing to participate. People have begun to give some feedback, and these feedbacks have also affected the details of our algorithm, and now it has reached this stage. It is the agreement that is mature enough, so we can see some specific challenges.
Talk about scalability:
In the past year, scalability has been greatly improved. There are two solutions for capacity expansion, one layer expansion and two layer expansion solutions. For Ethereum, there is fragmentation technology, which is under development and will soon see a test network of fragments. There are also two-tier expansion solutions. There are actually several expansion plans for the second-tier, and they have reached this stage. At least the demo version appeared on the Ethereum main network, the first two are STARK Plasma and ZK Rollup. When I participated in the previous roundtable forum, I talked about zero-knowledge proof, SNARKs, this is a new technology. Three years ago, SNARKs did not exist. Six years ago, STARKs did not exist. Now we see an extensible solution that uses STARKs, SNARKs to prove that large transaction levels are valid. Why does it improve scalability? Because we are not letting every node verify all transactions, in fact these large trading nodes can be proved by a node, which can be broadcast on the blockchain and then shorter and more on the blockchain. Simply prove that each node on the blockchain can verify this shorter version.
For Ethereum, the current Ethereum network can handle up to 20 to 25 transactions per second. Any Rollup mechanism can theoretically process 700 transactions per second, if everyone uses it on the Ethereum main network. A few months later, we hope to carry out the hard fork of Istanbul, after which the number will increase to 3,000 transactions per second. So these technologies are all there, and now there is a version that can be run and ready to use.
Talking about the application:
There has been a lot of progress in scalability, so what about applications? I don't talk about too many very specific applications, I really want to talk about things that are more relevant to users. Starting with the wallet, any user can interact with the wallet and the blockchain. With the wallet, the user can authenticate themselves to the blockchain. When we talk about blockchain applications, we talk about some of its good properties, such as decentralized systems, do not rely on third-party trust mechanisms, can verify whether a certain behavior occurs on the blockchain. . You know who authorized this behavior and who took it. All properties depend on a certain type of mechanism, which is to verify who is the user. In the past few years in the history of cryptocurrency, the wallet was just a private key. Basically, a wallet is a piece of software that holds a cryptographic key that is used to sign each message.
For this cryptographic key, there is a problem that the key is easily lost. Seven years ago, I wrote in an article written on BitcoinMagazine that if a person has a wallet, the wallet is a private key. If the hacker controls the private key and then installs an application, the application obtains the password of the user, decrypts the wallet after obtaining the password, and steals all the money from the user. This kind of attack is easy to happen, and the security on the computer is also a big problem. So holding your own password is risky.
A solution is centralized. If you don't want to hold a private key, you can put it on a centralized wallet, or let the exchange hold your token, but there is also a credit risk. So Mybitcoin, the first centralized wallet, was attacked two months later. We don't know if it is attacked. Maybe the user decides it or the owner decides to steal the money. It is dangerous to have a private key, whether it is holding a private key or using a centralized method to store tokens. What should I do? A recent trend is the smart wallet.
What does that mean? Your token or money is not controlled by a password, and money is controlled by a smart contract. This smart contract can perform very complicated conditions, such as how to spend money on the account, you can have more than one sign, any two keys can spend money, three keys are placed on the phone, one on the computer, one on the On the paper, put it in the house. It can also be a file that is saved by your friends. Another concept is social account restoration. A key can usually be exercised on behalf of an account. If the key is attacked or lost, some users will come together, either as an institution or as five friends. There are different ways to set it up. These keys can be grouped together and agreed to change the user's primary key. If you lose your key, you can restore it. If you are attacked, you can also stop hackers. Here they have a system of social account restoration, there is a mechanism, in fact, is also a mechanism for social account restoration.
These choices didn't exist a year ago, and now you can choose from several solutions that will get better and better every month. There are many projects that are working on this.
Talking about the Decentralized Exchange (DEX):
Someone tried to do token trading on the Decentralized Exchange (DEX). Has anyone done it in 2017? Some people have done it, but the experience is not particularly good and very complicated. For example, if the interface does not work, you must send five transaction confirmations before you can make a transaction. So trading one asset, getting another asset is getting easier, or your ability is getting stronger. Why is DEX important?
Decentralized exchanges make it easier to develop applications for multiple assets and reduce the risk of hackers (if the smart contracts used are secure). Because no single entity can steal money from it, and without permission , anyone can participate. Once the decentralized exchange is established, it can continue to run . So other developers can rely on this infrastructure for applications, and decentralized exchanges can really reduce the risk of centralized exchange power .
Talking about privacy:
In terms of privacy protection, we have made great progress, especially in terms of zero-knowledge proof. Significant progress has also been made in the application of common zero-knowledge proofs. The Ethereum main network has now begun to have some type of chain privacy solution,
There are other more powerful projects that are already under development. It will be released in succession in the coming year.
DAO has made great progress in the past year, including MakerDAO, MolochDAO, and Aragon. These DAOs are used for many purposes, such as sponsorship, charity, funding for open source projects, and governance for decentralized applications. DAO had a big problem before, but the latest project is mainly to hope to pay more attention to its security, to ensure that everything is auditable and formally verified. So far, it seems that the new generation of DAOs has taken the lessons of the original DAO and started to create something more meaningful.
Experiment with new public welfare project financing methods. There is a platform called Gitcoin Grants, which uses the donation matching mechanism to call it secondary financing, which was the idea I proposed last year. Use it to create a decentralized community-driven mechanism to allocate funds to public projects and benefit from the entire Ethereum system. Now that I have raised three rounds, the operation is still pretty good. Of course, there are still problems. One of the big problems, we are slowly realizing, is bribery and complicity.
About six months ago I wrote a blog about this aspect, whose name is "On Conspiracy." I criticize the governance of blockchains on the chain. I think most of the chains vote. Because of this mechanism or this structure, it is very easy for people with large amounts of coins to collude with each other, bribe each other, and vote for each other. Achieve greater returns in the system. We did come up with some solutions. This is a blog I wrote four months ago. I hope that everyone can solve this problem with cryptography and zero-knowledge proof, as well as multi-party computing, which is to enable the voting infrastructure to be used in DAU and other fields, so that the voting mechanism No one can know how other people voted. If no one knows how you voted, you have no way to bribe, and there is no way to collude with others. In this way, you can get the economic model you want at the beginning. The only result you choose in governance is in the agreement. There will be no unpredictable results, so the Ethereum Foundation Zero Knowledge Certification Team is developing. . Can be used to ensure voting mechanisms, but also to build better DAU and other things.
Talking about better financing:
The idea two years ago was, why not use smart contracts to make better financing? You can reduce the situation of inconsistent interests. So money won't enter the hands of developers, because developers can take money directly. Putting money on smart contracts, smart contracts have rules that will be handed over to developers in batches. This is DAICO, which I invented a year and a half ago, is a new design. It combines defi and compound interest rates and calls it a public interest project. I encourage everyone to take a look and read this article online, which has many interesting ideas. Basically, I can use blockchain technology and smart contracts to solve real-world problems.
What can we expect?
In the future, better and more reliable data sources , such as decentralized financial applications and other blockchain applications, rely on external data and require trusted external data sources. We know that there are some projects that are already solving this problem, but with more and more data, these projects will be more useful in the future.
Smart wallets are becoming more and more popular. I hope that when everyone uses it in two years, they will use the smart contract wallet to use Taifang, which is safer and safer than a single key. There are also smart contracts for financing and other use cases, as well as ETS's PoS and shards , as well as decentralized exchanges . The existing exchanges use zero-knowledge proofs to improve security, decentralized applications will be better than the center. The application is better .
All in all, I hope that more applications can emerge, and decentralized applications are much better than centralized applications. Now it is getting closer and closer to our destination, thank you!
The above is the content of V God’s speech at the Wanxiang Summit. Is it very enjoyable? If you are not satisfied, this Saturday (September 21), V God will soon rush to Hangzhou after his trip to Shanghai, he will be in Zhejiang University Yuquan Campus and Zhejiang University professors, students and China's blockchain developers, Come to a face-to-face live AMA. This time you will have the opportunity to meet face to face with him, sign up soon! More information: