What changes will the Ethereum merger bring?

Recently, I have seen a lot of news about the merger of Ethereum. The more accurate source is that Danny Ryan of the Ethereum Foundation said that the “difficulty bomb” in the difficulty bomb plan does not need to be delayed. It will arrive in mid-June. And seeing that the Kiln testnet test went smoothly, the mainnet merge preparation list is about to be completed. Merger is imperative.

What changes will be brought about after the merger?

I have seen a lot of news that after the merger of Ethereum, the production of ETH has declined. In addition to the current destruction of ETH by EIP1559, the growth of Ethereum may lead to deflation.

This part may be closely related to price and income, and will be more concerned by people. Let’s take a look at the data in this regard.

Since Ethereum wants to stop the pow chain, the computing power is useless, and the computing power can only be migrated to other networks with the same algorithm. The main data is the amount of ETH generated.

The current ETH supply output is as follows:

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After the merger, the miner’s reward will return to zero. At present, miners pack about 6,500 blocks every day, and the average reward is as high as tens of thousands of ETH.

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In the current mixing phase, both eth1 and eth2 are contributing to the additional issuance of Ethereum. After the pow is over, only the eth validator is responsible for the block generation, and in addition to the gas fee income, only the eth2 block reward is generated. The block rewards are as follows:

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Therefore, it is very intuitive that the daily output of ETH tokens is reduced by 90% from the original 14,000. Of course, this is a comparative figure without calculating the gas fee reward.

From the total supply in the figure above, since EIP1559 was enabled, 2 million ETHs have been destroyed. If pos is enabled, will it continue to do so? It is related to two data, namely the gwei price of pos and the network transaction processing volume.

With the launch of pos, the basic fee and floating fee in the gas fee will be reduced. Unless the network is in a very special congestion environment, it is possible to have the gas fee in the “off-season” of Ethereum transaction processing.

Assuming that the gas of the pos chain is 10 times lower than that of the pow chain, after the merger, it is possible that the network transaction volume will increase by at least 10 times, so that the Ethereum pos verifier can get thousands of ETH rewards.

For example, let’s make an assumption that under the pow chain, on January 5, 2022, 13,000 ETHs will be destroyed, leaving 6,600 gas fees. If the gas consumption is so high, the beacon chain verifier can increase the block reward by 500-1000 per day. Then the annualized rate of return of all validators will be approximately doubled, which is expected to be around 10%.

In addition to these gains, Ethereum may be technically more interesting structurally after the merger.

Ethereum calls eth1 the execution layer and eth2 the settlement layer. This title can directly feel that eth1 is one of the execution shards.

And this is one of the biggest expectations in the future, eth2 will be a larger homogeneous sharding structure. So you need to understand the next step in Ethereum: the shard chain.

After the PoS consensus began to undertake the network packaging, the final vision of Ethereum has not been realized. Because of the huge transaction data, it will still cause congestion and increase the gas fee. Therefore, the development route centered on rollup will require Ethereum to be realized under the PoS consensus. The successful operation of the shard chain.

Sharding is the process of splitting a database horizontally to spread the load, and in the context of Ethereum, sharding will reduce network congestion and increase transactions per second by creating new chains called “shards”.

The sharding process of Ethereum will be a multi-stage upgrade process, and finally the sharding chain will distribute the network load to 64 new chains. Hardware requirements will be kept low to standardize running nodes locally.

The sharding upgrade is planned to take place after Mainnet merges with Beacon Chain. The timing is expected in 2023, depending on how quickly the post-merger work progresses. Sharding will provide Ethereum with more ability to store and access data, and is currently thought to have no impact on executing code.

Sharding is a way to scale to keep things decentralized, with shard chains, validators only store/run data for the shard they are validating, rather than store/run data for the entire network. This speeds things up and greatly reduces hardware requirements.

Sharding will eventually make it possible to run Ethereum on a personal laptop or phone. More people will be able to participate or run clients in sharded Ethereum. This will improve security, and the more dispersed the network, the smaller the attack surface.

To maintain data availability, when the first shard chain is running, it will only provide additional data to the network. No transactions or smart contracts will be processed. But when combined with rollups, they handle a lot of transactions.

Aggregation is a “Tier 2” technique. They allow dapps to bundle or “aggregate” transactions into a single transaction off-chain, generate cryptographic proofs, and then submit them to the chain. This reduces the data required for the transaction. Rollup combined with all the extra data availability provided by sharding yields 100,000 transactions per second.

However, with the processing capacity of a single shard or an initial shard, it is also necessary to consider the process of applying sharding to processing execution. The part that needs to be discussed will be more complicated.

vitalik has written about the advancement of sharding work, which has some roadmap pain points.

1. Currently existing aggregates use transaction calldata. Therefore, if you want to improve aggregation capacity and reduce costs in the short term without doing any extra work, you need to reduce the cost of transaction calldata only. The current average block size is nowhere near a size that threatens the stability of the network, so this can be done safely, although some additional logic may be required to prevent very insecure edge cases.

EIP 4488 should increase the data space available for rollups per slot to a theoretical maximum of about 1 MB and reduce the cost of rollups by a factor of about 5.

2. The complete sharding implementation takes a long time, so you can implement a part first. For example, first implement the “business logic” of the sharding specification with a smaller number. It is easier to implement the sharding specification, but each shard will Broadcast in the subnet. By default, validators will trust the committee’s validation, but they can also accept a beacon block when they see the full body of a shard block.

In the case of shard communication, in order for the sharded data to be actually available through the rollup, the rollup needs to be able to attest to the sharded data. This will increase the aggregate data space per slot to about 2 MB (250kb * 4 shards per shard, plus calldata expanded in step 1).

3. If the number of active shards increases from 4 to 64. Once the sharded data enters the subnet, the P2P layer must be robust enough to split the shards into a larger number of subnets. Data availability at this time will depend on the committee. This will increase the aggregate data space per socket by about 16 MB (250 kB per shard * 64 shards)

Finally, it is worth mentioning that for the data availability of the sharding process, DAS, or data availability sampling, was born to ensure a higher level of security. Data availability sampling will be performed in stages, first on some clients. Sharding is complete when data availability sampling is fully introduced.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-changes-will-the-ethereum-merger-bring/
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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