Vitalik Buterin on Ethereum

Vitalik Buterin on Ethereum 2.0, Privacy, DeFi and World of Warcraft

This Sunday, Ethereum founder Vitalik Buterin commented on the latest developments in the development of the blockchain platform at the Ethereal conference in Tel Aviv, writes the Decrypt portal.

Commenting on the preparations for the launch of the zero phase of Ethereum 2.0, Buterin said that all aspects of the protocol have been worked out with the exception of “things that appear during security audits.” “Now clients are talking to each other. The next step is to make sure they can support the public network at the scale required, ”he added..

This process is called “Eth2Beaucoup” and requires seven Ethereum 2.0 clients to connect to each other and then keep in sync.

“We are potentially talking about hundreds of thousands of validators collecting a huge amount of transactions,” said Buterin.

During the discussion, the topic of rewards for validators was also raised. Critics say its size in Ethereum 2.0 is too small to motivate PoS miners to maintain the network. “There are many misconceptions on this score. Some say 1%. In reality, the maximum reward will be 1.7% per year only if literally everyone stakes. If we consider the option with a smaller number of validators, the reward will increase slightly, “commented Buterin.

If only 1% of the network decides to become validators, the amount of interest payments for them could reach 17%, Decrypt notes. At the same time, Buterin states that the specific values ​​are for further discussion..

Privacy and Ethereum

When asked about the integration of privacy technologies into Ethereum, in particular the zero-knowledge proof used by Zcash, Buterin stated that significant progress has been made over the past three weeks, “such that many people do not even realize it.”.

As an example, he pointed to Plonk, a new zero-knowledge proof-creation tool being prepared by startup Aztec Protocol. The idea is to eliminate the unnecessary complexity of creating zero knowledge proofs, making them more accessible to the average user..

Aztec Protocol today announced a ceremony to “generate a set of encrypted tokens that will be used to retrieve all future records.” The process will create a publicly available “reference string” that the company expects to use for itself and future crypto systems. “This also includes universal SNARKs, which will allow for an almost limitless set of use cases, from fully decentralized private banking to anonymous voting systems,” the company said..

In addition to this, the Aztec developers announced the closure of their latest round of fundraising with the participation of cryptocurrency exchange Coinbase, venture capital firms A. Capital and Libertus Capital. The funds received will go towards further development of developer tools and Plonk. The solution is expected to launch in October.

DeFi

Buterin was particularly enthusiastic about the development of the decentralized financial instruments (DeFi) sector, many of which are being developed on the basis of Ethereum. According to him, DeFi can give rise to tools that will avoid situations when the founders of blockchain projects collect large sums and then successfully hide with them..

According to the developer’s idea, investors are encouraged to stake coins and use the earned interest to finance the further development of projects. This will create a more modest but steady stream of funds that will depend on the project’s ability to succeed. In case of doubt, investors will be able to withdraw funding.

“The question is not about increasing profitability for yourself, but about investing income in a project that you support. This can help solve many of the problems that we had to face in the ICO space, “said Buterin.

At the same time, he pointed to the current problems of DeFi: centralized backdoors and oracles. Both problems are expressed in the excessive influence of centralized forces on supposedly decentralized systems..

“Decentralization will help little if the oracle is installed by one guy who is able to set the price at his own discretion, liquidate and outrun anyone and thus steal money,” he said, noting that there are certain improvements on this front too..

Finally, Buterin was asked about his interest in the online game World of Warcraft. By his own admission, the creator of Ethereum, he was a big fan of it until the developer Blizzard Entertainment made certain changes to the characteristics of one of his characters. “I was crying into my pillow. On that day, I realized what horrors centralized services can carry, ”he said..

When asked if he is ready to return to the game after the recent relaunch of its classic version, Buterin said: “If World of Warcraft switches to Ethereum, I’ll think about it.”.

Recently, the developer reported that Ethereum is currently running at the limit of its capabilities..

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