Ethereum zero

Multinational accounting firm EY has released a layer 2 protocol focused on scaling the Ethereum blockchain to bring down costs and increase efficiency. The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group , which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights , which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

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Content:

• Ethereum addresses with non-zero balance hits an all-time high
• Ethereum’s History: From Zero to 2.0
• Number of Non-Zero Ethereum Addresses Hits Record High Above 71M: Glassnode
• EtherZero Review: The Little Known Ethereum Hardfork
• What is Immutable X? Ethereum’s First Layer 2 For NFTs
• Vitalik Buterin: Layer 2 is the future of Ethereum scaling

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Ethereum addresses with non-zero balance hits an all-time high

MEV is not inevitable. It is an exploit caused by a vulnerability that we can fix. It is going to cost Ethereum users around 1. I have shown that this money will be taken by the rich from the poor who will be powerless to protect themselves. Having been concerned about this issue since I first discovered it pre-genesis in , I am so happy to offer a solution. All of my work on this is open source. If you use any of my ideas I only ask for acknowledgement. Please pm me on this forum or discord:pmcgoohan or contribute to the docs on github.

With love, pmcgoohan. A projected 1. For the first time this will surpass the amounts made in High Frequency Trading HFT in the traditional financial markets at around 1 billion dollars. Well our instincts are correct. Decentralization will fix the problem. The reason these problems have not yet been fixed is that Ethereum has not yet fully decentralized. Blockchain structure is fully decentralized. Blocks are proposed and validated by consensus across tens of thousands of nodes.

But there is a dirty secret at the heart of each block. While the blockchain structure is created collaboratively, the content of each block is not. But the fact is that the content of each block is created by a centralized authority without recourse, the miner. As long as a proposed block is structurally sound, the content of the block is undisputed by the consensus.

This distinction between structure and content is profound because nothing about block structure creates the problem of MEV. Frontrunning, backrunning, sandwiching and other attacks all come from the centralized way in which block content is produced.

But look at how block content creation sits uncomfortably within it, sneakily centralized in the miner. Consider the famous double spending problem that blockchain technology was designed to solve: if one computer has complete control of a financial ledger, how can you stop it spending the same money twice?

Instead you build a structural consensus where no single computer is in complete control of currency transfers, and the problem is solved. MEV is the equivalent of the double spending problem for executable blockchains.

If one computer has complete control of transaction inclusion and ordering, how do you stop it from frontrunning, backrunning, sandwiching and generally exploiting everybody else?

Instead you build a content consensus layer where no single computer is in complete control of transaction inclusion and ordering, and the problem of MEV is solved. Now we have a content layer within a consensus protocol stack. No-one is in control, and everybody is.

We have decentralized. Now that feels good. We remove control over the content of a block from a single party and distribute it across the network. By stripping any one agent of their ability to manipulate content, applications become fair and equitable to all users by default. Fairness becomes an innate property of the network without the need for difficult and obstructive workarounds at the application level that are rarely implemented.

Our mechanisms for fair inclusion and ordering are provably close to optimal. They are certainly far more equitable than the current worst case of total miner control. As with the structural layer, the consensus layer is publicly auditable. Any observer is able to recreate the content of any given block using publicly available content consensus messages.

Block content protocols are a layer on top of existing block structure protocols. The protocol does not change whether we are creating content for an eth2 validator, a rollup sequencer, eth1 miner or any other Ethereum structural layer. A single content consensus implementation may be used across all of these networks and more. Solve it for one and we solve it for all. Inter-market mechanisms like simple arbitrage that are important for price discovery are still permitted.

MEV as the exploitation of a helpless victim by a privileged actor due to a network vulnerability is not. There is currently a centralized aspect to the network and it is causing harm.

We need to fix it if we are serious in our ambitions for full decentralization. Here is a simplified view of the protocol. Pickers choose transactions. Shufflers mix them up. The printer manages it all and prints the chunks to the blockchain or rollup. What if we force a pseudo-random transaction ordering for each block at protocol level? Miners would still get to pick what transactions get in the block, but front-running becomes less deterministic, and sandwiching transactions much harder.

If not then it is trivial for them to try slight variations of the same tx that hash differently eg: adding a gwei each time until the RNG places the inserted tx exactly where they want it. This is why in Alex the Shuffler Queue always lags the Picker Queue another reason being withholding attacks. Also, Alex preserves time order much better than randomizing whole blocks.

Tx order is only randomized within a chunk and there are multiple chunks per block maybe What if the ordering hash was derived from the transaction sender address?

H txn. To arbitrarily order a block of such transactions, Would require having sufficient balances on a range of addresses, which makes it less efficient.

In such a scheme, it seems it would be impossible to sandwich a transaction, since two transactions from the same sender would necessarily need to be ordered sequentially without interruption. Immediately, you have a positive win expectation. The wealthy can best afford to fund the multiple accounts that grant them this preferential tx order.

The most wealthy can even afford the number of accounts required to position two txs and sandwich a trade. In fact, only they can. In this sense, it is less equitable than what we have now. This is reason that Alex never gives any one participant a choice over outcomes.

It is the reason that shufflers cannot withhold , that we only skip sets by consensus , and that we never skip individual roles. They allow order flow attacks that would be unworkable without them and these are not tracked by MEV-Inspect.

I think the reason people are so into MEV Auctions right now is that they reduce the txn bloat caused by price gas auctions. Put another way, MEVA exploits the users to save the network.

It should be the users that exploit the resources of the network. It is completely back to front and no kind of a medium to long term solution.

Imagine if when the Heartbleed vulnerability was discovered, the OpenSSL devs decided it was too difficult to fix. I doubt anyone would still be using OpenSSL. You are right that this is an issue, although unlike at the moment it is possible to protect yourself against it.

There has been some discussion of this on the other thread …. So the answer is not really because you can split your transactions as much as any attacker can. We have fairness but at the cost of tx bloat and raised costs. Hence looking at enc mempool and fair ordering variants. This sort of tx bloat is overall a bad thing for the network as you say. If their chance is really so low of winning then perhaps it does disincentivize MEV a lot. I could also see it driving collusion if this is even possible?

I see an advantage to this Alex method, but I am not convinced it would solve the issue or benefit the end-user in any meaningful way personally. I am also curious how this would work with validators instead of miners.

However, I concede I am no expert, simply interested in the topic. I predict that the more use cases expand for Ethereum the worse the situation will become ie: the more exploits of transaction order corruption will emerge until it is becomes clearly intolerable.

Over the same time workable solutions to MEV will be getting closer all the time. So I just ask non-interventionists to continue to keep an open mind about this issue. The situation is changing all the time. Totally, I am still curious about any solutions to the issue or how the dynamics change over the next several months with EIP and moving to the PoS chain. Implementing some solutions that mitigate MEV as much as possible would be great!

Re: my suggestion that non-intervention will become intolerable, here is a relevant piece I just had published on coindesk. When you have data corruption in your system you are bound to get wild and unpredictable negative effects. Here are some possible outcomes. Do you have a source on HFT in traditional markets being valued at only 1 billion? That seems way too low considering the insane amount of HFT firms around the world and the billions of dollars they invest into frivolous activities like straightening fiber-optic cables undersea A Transatlantic Cable to Shave 5 Milliseconds off Stock Trades.

This number is from the Financial Times paywall. Looking at it again, it seems to be US stocks only, so the amount for all financial instruments will be higher.

Ethereum’s History: From Zero to 2.0

Vitalik Buterin came up with the idea of Ethereum in at the age of Its success cannot be separated from a creatively elegant idea, a nicely executed development process and the continued support of the community. Bitcoin established the foundation for decentralized blockchain technology. But its functionality is limited to peer-to-peer electronic cash transfers. At first, he wanted to achieve this by adding a more advanced scripting language on top of Bitcoin to allow smart contracts processing, but this idea was rejected by the Bitcoin community.

Number of Non-Zero Ethereum Addresses Hits Record High Above 71M: Glassnode

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EtherZero Review: The Little Known Ethereum Hardfork

This op-ed was originally published by The Washington Post. Bitcoin, the original cryptocurrency, was launched in The surge in their prices earlier this year minted tens of thousands of cryptocurrency millionaires—at least on paper. Cryptocurrencies might turn out to be a massive speculative bubble that ends up hurting many naive investors.

What is Immutable X? Ethereum’s First Layer 2 For NFTs

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Vitalik Buterin: Layer 2 is the future of Ethereum scaling

The main technology used for privacy are called 'zero knowledge proofs'. This technology allows for privacy by mathematically preventing certain information such as amount, sender, recipient, etc. An older technology called 'Mixers' have some benefits for privacy as well as they serve to obfuscate the data, often making it confusing or even empirically impossible to correlate the information correctly. Due to their widespread usage, the community is reletively certain of their effectiveness. However, they come with a notable downside. If the full factorization of this polynomial is known by someone, then it is trivial for that person to make proofs for that specific zk-SNARK to say incorrect statements. Therefore, it is required that no single person or entity know the entire factorization of the polynomial.

Those who utilize Ether Gear are known as Ether Gearists. Similar to a machine , Ether Gear utilizes the Ether that flows from the user's body and rearranges it by turning it into power, making the user into a " mechanical wizard " of sorts. Ether Gears typically require multiple years of training in order to master, although some individuals are talented enough to do so after only a single month.

Zero Hash is among the top Crunchbase companies, which is known to offer some of the best post-trade settlement in order to bridge a number of divided markets. It has been operating in Chicago, playing a key role in diverse kinds of execution platforms. The company seemed to have added some favors as far as Ethereum transactions are concerned. Today one can find the company announcing a four percent increase in the day-to-day blockchain transactions taking place for Ether with its current infrastructure.

Search markets. News The word News. My Watchlist My Watchlist. The Ethereum network remains to this day one of the most active and innovative blockchains in the crypto space. Onboarding thousands of users since its inception, Ethereum is the king of DeFi and some of the hottest trends in this industry with billions in total value locked TVL. However, Ethereum is also one of the most expensive platforms for regular users.

Ethereum is arguably the most influential blockchain project ever and the one that has contributed the most to the development and evolution of the DLT space. Of course, we cannot talk about influential blockchain projects without mentioning Bitcoin, which kicked off the whole thing. Not to mention that the vast majority of crypto tokens today started their life on Ethereum.