Several technical details and reasons behind ETH Merge and ETC migration

author of this article

0xTodd

First of all, does ETH have the conditions for forking?

Basically not, because the value of the ETH network is not only the Ether currency, but also the token on it. If you keep the PoW fork, it can only be said that the new Ether coin may still have some value, but USDT, USDC, etc. are basically worthless, because if you are Tether or Circle, you must choose to go with V God.

What is the Merge process like?

If roughly divided, ETH can be divided into two layers: consensus layer and execution layer. The former is similar to the leaders in the enterprise, the latter is similar to the employees in the enterprise. Airborne a batch of new leaders (PoS nodes), and replaced the old leaders (PoW miner nodes), but the employees (EVM) are still the previous employees because they are only responsible for execution. So, as a user, you don’t feel any difference.

So what if PoW refuses to upgrade the client?

Some people may ask, what if the old leader occupies the office and does not leave? Servant of the people, the last president, Rivaxia, just stuck around. The difficulty bomb solves this problem. In theory, if PoW refuses to upgrade the client, the ETH PoW chain will become more difficult to mine. From now a block of 13 seconds, it will gradually increase to tens of seconds, hundreds of seconds.

What happens if you dig slowly?

Then everyone knows that in a distributed system, the longest chain is the legal chain. In the case of a difficulty bomb, the old client cannot outperform the new client. PoS ETH standard 12 seconds a block, fixed, so TPS also increased slightly.

So can the old PoW miners upgrade to the new client for hard mining?

No, because there was a field called “ommers” in the ETH block, and this field was adjusted to 0. In addition, the original difficulty field was changed to random. This means that there will be no block difficulty in the future, and blocks will only be randomly generated among validators.

Several technical details and reasons behind ETH Merge and ETC migration

Wait a minute, how did this random generation come about?

You deposit 32 ETH and you can be a validator. Then, every 12 seconds, the whole network randomly selects a healthy node to pack the block (in the past, it was faster than the whole network who calculated the hash, so the KPI of the consensus layer also changed).

Is this random really random?

Sadly, it’s not really random. Although the hash of the blockchain is often used for lottery, in fact, such a distributed system cannot generate true randomness because miners can control the generation of the hash.

How to solve the random number problem?

Therefore, ETH is also trying to find a way. In the fifth stage of splurge after ETH’s merge, Ethereum will use VDF technology (verifiable delay function), and then the real random numbers will be at your fingertips, which will completely solve the random problem of PoS node selection. .

Several technical details and reasons behind ETH Merge and ETC migration

Will there be mining pools in the future?

I think there are still 41w nodes on PoS ETH now. That is to say, on average, if you have 32 ETH, you can randomly generate a block on your head every 56 days (41w*12 seconds). And everyone has learned probability theory, this 56 days is just the expected value has not been guaranteed. Therefore, it is a good choice to join the mining pool to share money together.

How much is the annualized participation in ETH PoS mining?

Generally speaking, everyone expects to be around 5%, but it may be around 9% including the handling fee. The general rule is that the more the total amount of Stake ETH, the higher the total output, but the less the income allocated to each validator, this curve is non-linear.

Several technical details and reasons behind ETH Merge and ETC migration

Speaking of forks, if it is hard to fork, what should we do?

The first is the snapshot, and then the deleted fields are restored, and then the miners are fooled into joining. It’s true that miners have nowhere to go, but if the new chain’s token revenue doesn’t cover power outages and graphics card depreciation, it’s not sustainable either.

How much is the new chain worth?

Frankly, it depends on the exchange. If the exchange is willing to list the currency, even if the project is made of shit, someone will pay for it. Hope the exchanges remain upright and calm. Referring to BCHA, there is no father, just because it is listed on the exchange, there is still a price. If the new chain token is not listed, its value will be very limited, and the miners will soon shut down.

What about ETC? Will miners not go to ETC?

definitely will. But the capacity is very limited.

Always remember that it is the price that guides the computing power, not the computing power that guides the price. Bitcoin is powerful, not because there are many miners who support it, but because Bitcoin is valuable, so miners are willing to support Bitcoin so that they can pay electricity bills. Otherwise, BCH would have flipped BTC long ago, after all, there were so many miner fathers in it back then.

ETC capacity is limited, so how much is there?

The computing power of ETC is 25 TH/s, and ETC is 924 TH/s, which is about 1:37. And now ETC price is 32, ETH price is 1600, about 1:50. So the capacity is really small. If you squeeze in hard, the payback period will be very long. The power consumption of the ETH graphics card mining machine is not as great as that of Bitcoin, so the price of the shutdown currency is not as high as that of BTC. If you squeeze it, you can dig ETC hard, but it is too volume.

Several technical details and reasons behind ETH Merge and ETC migration

unless…

Unless ETC can rise to four digits, then ETH computing power can be completely cut in, and the return period will remain unchanged.

but…

Yes, there must be, but this is a chicken-and-egg problem. The currency price guides the computing power. If the currency price does not go up, the computing power cannot come.

So why is ETC?

To be fair, ETC is the real ETH (just kidding). But u1s1, ETH is indeed the chain that forked out. The thing that V God made at first was ETC, so it was called classic. Because of the DAO incident, if you are interested, you can check it yourself. ETC is determined to roll back a hacker’s transaction, so ETH was born.

Is there an EVM on the ETC? Is there DeFi?

have; have.

ETC’s EVM and ETH are exactly the same, after all, these two were once one. It’s just that the ETC network is easily attacked, so the DeFi ecosystem has been tepid. Now the TVL of ETC’s entire network is about hundreds of thousands of dollars. There are mainly two Swap. This amount is very small and can be said to be true.

Several technical details and reasons behind ETH Merge and ETC migration

Why is ETC being attacked?

Because it uses the same mining machine as ETH, and the computing power can be rented on some platforms. Therefore, as long as the hacker rents 1% of the ETH computing power, the threshold of 51% attacking ETC can be easily reached. Moreover, attacks against ETC have indeed occurred many times in the past.

How did the attack happen?

This is the basics of PoW blockchain, called double spending. For example, I use 100 ETC to buy one of your antique vase. Then rent the computing power to regenerate the block, and then let the regenerated block not include the transaction “I transfer your money”, and then become the longest chain. Then my ETC has not been transferred to you, then my ETC and the antique vase are in my hands, and your blood is lost.

How much does an attack cost?

If you go to Nicehash to rent computing power, it will cost about 20-30 BTC to attack ETC for a whole day. So, if you don’t dare to engage in DeFi on it, who can bear the blockchain that rolls back frequently? Now the ETC recharge of the exchange requires hundreds of block confirmations, but I think hundreds of confirmations are not enough.

Several technical details and reasons behind ETH Merge and ETC migration

What will the influx of computing power into ETC bring?

The fundamentals have improved. If a large amount of computing power pours into ETC, it will indeed be good for ETC. But the premise is that the secondary market has to be paid for by someone.

You’ll notice that we’ve entered a strange cycle. If you want the secondary market to pay the bill, you must have an ecology; if you want to have an ecology, you must be safe; if you want to be safe, you must have high computing power; if you want to have high computing power, the secondary market must pay for you.

PS: This is basically the same as the logic of the ETH PoW fork, and there is not much difference (mainly because I can have one less thread, haha)

What about attacking ETH? How about the cost?

Attacking PoW ETH for one hour, according to https://51attack.info/, requires about 900,000 US dollars. But the problem is, you can’t rent that much computing power, you have to buy a mining machine. And if you buy 51% of the ETH mining machines in the world, then you are already an ETH master, and you don’t need to attack it. So it’s mostly based on economic assumptions.

So what about attacking PoS ETH? How much does it cost?

This is also the strength of PoS, and attacking it is very difficult. Because it is PoS, miners are required to stake, and every block ensures that its state is final.

What is the final state to be determined?

For example, still ETC, I want to buy your antique vase and pay you the money, because there is the longest chain principle, you do not know whether the payment has been received or not, so its state is Schrödinger. Although the wallet shows that it has been received, this item may be rolled back.

No, isn’t BTC and ETH insecure?

No, the reason why BTC\ETH needs several block confirmations is just from a probabilistic point of view, it becomes impossible to chase the longest chain after a few blocks, so it is only 99.9…9% safe, medium This issue was discussed in Satoshi Ben’s paper. As long as 99 is enough, it can be considered basically safe.

wait, you got me dizzy…

What is 99.9…9% safe? It means, I paid you 100 USDT and you received it, but if my mining machine is lucky and mines N blocks in a row, I can cancel the transaction, but the probability is extremely small That’s it. The so-called “final state is deterministic” is to increase the safety probability to 100%!

How does PoS ETH achieve finality?

All nodes in PoS ETH have to “stand in line” for each block. Only a block that has received 2/3 of the locked ETH votes in the entire network is considered valid.

In PoW, it is common for two miners to calculate the probability of a problem at the same time, so it is necessary to compete for the longest chain. But in PoS, it is impossible for two blocks of the same height to get 2/3 votes at the same time. Because 2/3+2/3>1.

so what?

So under the PoS mechanism, once each block is on the chain, it can never be rolled back, it is deterministic. You can always trust PoS ETH, what you see is what you receive, this is the final state, what you see is what you get.

I heard that ancient PoS has a very sassy attack method…

Suppose you are a big owner and own 100 million tokens. One day, you sell all 100 million tokens into US dollars.

Then, you start the attack from the block before you sold it, because you (used to) have a lot of tokens, so you can quickly build a new longest chain, and then cancel the transfer that sold into US dollars to become the longest chain chain, then you can get the US dollar and get the token back.

Can this method attack ETH today?

The current deterministic PoS method of betting completely defends this attack method – because it is not allowed to roll back.

So what to do if you want to attack PoS ETH?

Possessing 2/3 of the entire network mortgage ETH, according to the current price, this is as high as 140 million US dollars, and it cannot be flash loaned, so it is still extremely difficult for hackers. And, even if hackers come together, ETH has the means to guard against such an attack. You can refer to:

https://arxiv.org/pdf/2003.03052.pdf

It costs so much, so what do you want to say?

Don’t be deceived too much by the narrative of L1. ETH itself is very terrifying from theoretical demonstration, to technical implementation, and to community accumulation. All aspects are considered very thoughtfully. This is the trust feeling of a security bottom layer. Of course, Bitcoin is doing well. Even Bitcoin is forward compatible with upgrades, so that a stable system can be used as the bottom layer of the future world financial system.

so! ! ETH is difficult to subvert, even if the opponent is a big miner.

so! ! ETH to da moon.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/several-technical-details-and-reasons-behind-eth-merge-and-etc-migration/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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