Vitalik Buterin, the co-founder of Ethereum, published a prolix paper on his blog highlighting the trade-off between decentralization and scalability in architecting blockchain interfaces.
Buterin essentially published this paper to criticize Elon Musk May 15 tweet, stating that Dogecoin will arise as the main chain in the event if it moves to build its block size by 900%.
Ideally, Doge speeds up block time 10X, increases block size 10X & drops fee 100X. Then it wins hands down.
At the beginning of the paper, Buterin stated that
Without leading to extreme centralization and compromising the fundamental properties that make a blockchain what it is? What if you change the consensus algorithm? Even more importantly, what if you change the technology to introduce features such as ZK-SNARKs or sharding? A sharded blockchain can theoretically keep adding more shards; is there such a thing as adding too many?
He then stressed on significant and very subtle specialized elements that cut off-blockchain scaling, both with sharding and without. By and large, there are arrangements, yet even with the arrangements, there are limits.
“Sharding fundamentally gets around the above limitation because it decouples the data contained on a blockchain from the data that a single node needs to process and store.”
Buterin pointed out the need for decentralization to reduce the risk of a network having a single point of collapse and the security a broadly distributed network enjoys against organized attacks. If every user ran a verifying node, then the attack would have quickly failed. But even if “some” users ran verifying nodes, the attack would not have led to a clean victory for the attacker; instead, it would have led to chaos, with different users seeing different chain views.
At the very least, the ensuing market panic and likely persistent chain split would significantly reduce the attackers’ profits. The thought of navigating such a protracted conflict would itself deter most attacks.
According to Buterin, There are three fundamental limitations to a full node’s ability to process multiple transactions: Computing power, Bandwidth, and Storage. Buterin likewise affirms that sharding can work with equivalent versatility to that offered by many incorporated chains.
In light of the present status of the Ethereum organization, Buterin predicts that a sharded Ethereum could “probably process one a million transactions per second with the full security of a blockchain.”
In March, Buterin proposed that rollups (second-layer arrangements that process and store exchange information on an assigned sidechain. The arrangements are intended to relieve Ethereum’s scaling troubles) will be sent on Ethereum before sharding ships with ETH 2.0.
Ethereum 2.0 (otherwise called Eth2) is a move up to the current variant of the Ethereum blockchain. The motivation behind Ethereum 2.0 is to settle the bottlenecks that are common with the existing form and improve the scale and speed of exchanges in the Ethereum network.
After the publication of Vitaliks paper, Elon criticized him in a tweet,
“He fears the….” and attached the picture of Doge, which said, “You’ll never use the dollar again.”
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