Golden Outpost | Vitalik opposes the Beacon Chain price feed service proposal

On May 12, Ethereum 2.0 researcher Justin Drake proposed a base-layer price oracle proposal in the Ethereum ethresear.ch forum. The proposal suggested adding a simple price feed service to the beacon chain to track the price of key assets. Price provides price information for scenarios that require the price feed service.

In this regard, Vitalik Buterin, the founder of Ethereum, expressed firm opposition and put forward six reasons for opposition:

1. This is a fundamental change to the technical characteristics of blockchain.

2. The proposal relies on a majority-honest assumption, but a lot of what is being done on Ethereum 2.0 is fundamentally about getting rid of the majority-honest assumption and trying to create a "second line of defense" should the majority-honest assumption fail ".

Golden Evening News | List of important developments on the evening of December 5: 12:00-21:00 Keywords: Ethereum, digital renminbi, European Central Bank, Academy of Engineering

1. Ethereum developers plan to migrate EIP-1559 to the main network, and most of the research problems have been solved;

2. The "dual offline" function of digital RMB will be exposed for the first time in the Suzhou red envelope pilot;

3. Webster Rating: Cryptocurrencies will no longer be fringe currencies;

4. Data: Bitcoin activity has hit a 7-month high, and long-term holders are closing their positions;

5. CEO Global: Because the core founder of the company was taken away by the relevant department for investigation, the currency deposit and withdrawal and OTC transaction were suspended;

6. The European Central Bank plans to conduct preparatory experiments on the digital euro in four aspects;

7. Shen Changxiang, Academician of the Chinese Academy of Engineering: Blockchain security requires active-ethexc immunity to trusted computing. [2020/12/5 14:08:05]

3. Compromises the neutrality of the agreement and opens the way for further neutrality compromises.

Golden Morning | List of important overnight news on October 24: 21:00-7:00 Keywords: Federal Reserve, South Korea, CME, Russia, Grayscale

1. The Federal Reserve seeks public opinion on lowering the threshold for collecting information on overseas transfers, involving cryptocurrencies;

2. South Korea’s Financial Services Commission says it is not responsible for North Korean hackers stealing cryptocurrencies;

3. CME has become the second largest bitcoin futures market;

4. Governor of the Central Bank of Russia: The digital ruble must ensure privacy rather than anonymity;

5. The scale of encrypted assets managed by Grayscale increased by 300 million US dollars within 1 day;

6. MineSpot claims to be opening Russia's largest cryptocurrency mine;

7. Deputy editor-in-chief of Securities Daily: Blockchain represents a new future and new wealth;

8. Foreign media: The FBI investigated Ripple's 2017 blackmail incident. [2020/10/24]

4. Closed the door to oracle design innovation.

Jinse Finance Mining Earnings Broadcast丨BTC Completed the Third Halving Most Miners Stay on the Sidelines: Jinse Finance reported that according to OKEx mining pool data, Bitcoin completed its third halving at 3:23 on May 12, Beijing time , the current block height of BTC is 630036.

Today, the computing power of the whole network is about 120.45EH/s, and the difficulty of the whole network is about 16.10T. With the arrival of the halving of block rewards, a variety of models broke through the shutdown currency price. However, the current computing power of the entire network has not experienced a sharp drop. Part of the reason is that most areas will enter the wet season on May 26, and some hydropower sites have begun to rent in advance, and the price of electricity is 0.24-0.20. The reduction in electricity costs can be offset by the reduction in revenue, so many miners are currently on the sidelines.

Current BTC earnings: 0.00000781BTC/T/day. It is predicted that the next difficulty will be 16.77T (+4.12%), and there are still 6 days left before the adjustment. [2020/5/12]

5. Increased the risk of centralization of staking verifiers.

Jinse Finance live report OKEx CEO Li Shufei: Multi-centralized exchanges are not necessarily better than centralized exchanges: Jinse Finance live report, at the 2018 Global Blockchain Elite Summit, conducted the "Digital Asset Exchange Ecological Architecture and In the roundtable discussion titled "Development Trend", OKEx CEO Li Shufei pointed out that exchanges are the top priority in the blockchain industry and play many roles. Japan is the strictest and most compliant country, South Korea will follow Japan, the United States will have more and more SEC supervision, and the regular army will enter the field. Multi-centralized exchanges are not necessarily better than centralized exchanges, because TPS may not meet the requirements, and the security issues of multi-centralized exchanges are also worthy of attention. I hope that the national policy can be more clear. [2018/4/28]

6. Compared with application-layer token-based oracle machines (such as Augur, etc.), it does not actually provide more security. In addition, he also said that the Ethereum ecosystem benefits from a strong application layer token ecosystem, rather than monopolizing all important functions through the L1 layer.

The following is the original text of Vitalik's comments:

I'm absolutely against it!

First, this is a fundamental change in the technical nature of what blockchain is trying to do. We now have the property that the correctness of blockchain progress can be verified completely programmatically. Validity is a deterministic function, and availability (i.e., non-censorship) can be verified by online nodes, allowing low-latency online nodes to reach consensus on whether the blockchain censors transactions. On the other hand, the proposal aims to introduce properties of the chain that cannot be verified by any program even in principle. Even in possible future worlds where there is no apparent consensus on the correct value to enter (e.g. a civil war in one of the aforementioned countries and both sides claim to maintain the "real" USD/JPY).

Second, it relies on the notion of majority honesty, but a lot of our efforts on eth2 are fundamentally about getting rid of the assumptions of majority honesty and trying to create a "second line of defense" should the notion of majority honesty fail. For example: proof of supervision, proof of data availability and proof of fraud, censorship detection technology, etc.

Third, it undermines protocol neutrality and creates a "ramp" for further neutrality impairment. The proposal elevates "defi" to a privileged application category and a specific set of asset/price indices. Demand for more assets will inevitably arise, which will eventually lead to a demand for oracles for things other than price. It also exposes base-layer governance to political risk; base-layer governance will have to judge which currencies are "important enough", which application categories are important enough, how to adjudicate emergencies...

Fourth, it closed the door to Oracle design innovation. A natural alternative to this design is that the price at time T should only be agreed upon at time T+1 days to leave room for on-chain attacks, exchanges being down for extended periods of time, and generally functional APIs, the approach to designing oracles has A lot, and it doesn't seem right that L1 dominates the ecosystem with one approach.

Fifth, this increases the risk of centralizing the validator as clients will require more automated updates to maintain their oracles, increasing the risk that the validator will just blindly follow instructions from the client's developers (otherwise people will simply give up and go turn to the pool).

Sixth, it doesn't actually provide more security than a token-based oracle at the application layer (such as Augur, etc.). MKR market cap is about 2 million ETH, so application layer tokens can clearly gain significant market cap. We expect the initial staked ETH to also be in the ~2M range (possibly longer around 10M). So fundamentally, base layer oracles are not at all much more secure than popular application layer oracles. Seems more like an order of magnitude difference at best.

I actually think we should be moving in the opposite direction, explicitly limiting and restricting the capabilities of the base layer to deliberately leave room for the application layer ecosystem to use other tools. Augur has been working well as an oracle, and other designs exist (UMA, MKR, Chainlink, etc.).

The Ethereum ecosystem benefits from a strong ecosystem of application-layer tokens rather than an L1/ETH monopoly on all important functions. This is because the Ethereum ecosystem has a large need for public finances, and the limited supply of ETH to provide these public finances (about 590k ETH in EF plus some whales), and modifying the Ethereum protocol to get more ETH is politically difficult. However, application layer tokens can provide these public goods; eg. Gnosis has done a lot of work in the smart contract wallet, and now maintains openethereum and so on. Application layer tokens can even directly finance public finances through secondary financing. Therefore, we should deliberately seek out and design tools that are symbiotic with such application layer tokens, rather than treating them as a testing ground for the base layer.

Ah

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