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Vitalik Buterin suggested to Ethereum
The verifier of the equity certificate gives a higher reward
According to reports, Ethereum co-founder Vitalik Buterin proposed a proposal to add a block validator reward to its planned PoS system. As reported in the early Ethereum news, the second largest blockchain network plans to move from a Proof of Work (PoW) consistency algorithm to a Proof of Equity (PoS) that supports its blockchain expansion efforts.
Following the successful Ethereum of Constantinople, the Ethereum blockchain took another step towards the PoS era. Ethereum core developers are discussing proposals and contributions to the new era, otherwise known as Ethereum 2.0. One of the factors to consider is the latest proposal from Buterin.
He proposed to increase the reward to 3.3%, assuming a total of 30 million ETHs in the blockchain. With this, the verifier can get up to about 100,000 ETHs (or about $160 million) a year. Although it is very high, it is equivalent to the $700 million that the Ethereum miners earn each year at Ethereum.
POS and POW systems
In the PoW system, the decision about the Ethereum blockchain depends on the mining, while in the PoS system, the block verifier uses a certain amount of ETH to verify the blocks on the blockchain. If the validator performs a bad operation, the validator will abandon the ETH bet.
In POS systems, the security of the blockchain depends to a large extent on the ETH's holdings, as this will prevent the validator from participating in the wrongful act. According to Fedrik Harryson, CTO of Ethereum Software Client, if an attacker wants to succeed on a network that proves equity, he must get so much Ethereum (ETH). In order to compete with the ETH held. Harrison said:
"In the equity certification system, your attack cost is just to buy tokens. You basically want anyone to buy so many tokens that they can attack the network, which is unreasonable."
Ethereum developers set ETH share target
According to reports, the core developer of Ethereum aims to hold at least 32 million Ethereum shares in Ethereum, worth about $5 billion. It is believed that this value will prevent bad actors from trying to destroy the blockchain by accumulating ETH.
Expert analysis of Vitalik Buterin's proposal
Vitalik Buterin's suggestion to increase bet rewards resonates among members of the Ethereum community as it increases the security of the blockchain. Developers agree that 2.2% of the shares are ideal and hope to invest about 30 million ETHs on the network. But Harryson observed that "sliding scale" is the best choice; when there is not much ETH, add rewards to motivate people to lock ETH.
In support of Buterin's proposal, Consensys's coin strategist Collin Myers acknowledged that the initial revenue was too low considering the minimum share of 32 ETH, calculation costs, code risk and maintenance costs. Many members of the Ethereum community hold this view.
However, ConsonSys's agreement engineer Jonny Rhea warned against paying too much. He said, "They have to find a suitable number. You don't want to spend too much money to protect the blockchain, and don't want to spend too much money." He said the developer went back to the design board and presented Vitalik Buterin. It is recommended to design the best bet reward system.
The current transaction price of Ethereum is about $156 because the market is trying to recover from a sudden drop in negative speculation in the Bitfinex case with the New York prosecutor. At the time of this writing, the Ethereum market value was approximately $16.5 billion. (continuous chain)