Why Ethereum 2.0? Roadmap for Ethereum 2.0 New Consensus Algorithm Sharding ETH2.0 Demo

1. ETHEREUM 2.0
Why Ethereum 2.0?
Roadmap for Ethereum 2.0
New Consensus Algorithm
Sharding
Demo

2. CHALLANGES WITH ETHEREUM 1.0
Centralization
•Code is controlled by a
small group of people
•Small node count (7.5K as
of 3/30/2020)
Scalability
•Max at ~1.3M
transactions per day
Energy Waste
•Takes more electricity
then a small country
•22 KWh per
transaction

3. CENTRALIZATION

4. SCALABILITY

5. ENERGY WASTE

7. ETH2 ARCHIATURE AND
DESIGN

8. ETHEREUM 2.0 NON-FUNCTIONAL
REQUREMENTS
 Decentralization: to allow for a typical consumer laptop with O(C)
resources to process/validate O(1) shards (including any system level
validation such as the beacon chain)
 Resilience: to remain live through major network partitions and when
very large portions of nodes go offline
 Security: to utilize crypto and design techniques that allow for a large
participation of validators in total and per unit time
 Simplicity: to minimize complexity, even at the cost of some losses in
efficiency
 Longevity: to select all components such that they are either quantum
secure or can be easily swapped out for quantum secure counterparts
when available

9. ETHEREUM 2.0 ARCHITECTURE

10. TIMELINE
2020
2021
202?
Beacon Chain
• Casper Proof of Stake
protocol
• ETH2
Sharded Chains
• Use shards to scale
• Crosslinks
State Execution
• Virtual machine based on eWASM
• Asynchronous cross-contract calls
• Support accounts, contracts, state, and
other abstractions
• Truffle, Solc, ganache ported to
support eWASM

11. SOLVING ENERGY WASTE
PROBLEM
Proof of stake

12. PROOF OF WORK → PROOF OF
STAKE
Proof of work
Miners
Miners participate in building
consensus
Miners validate new transactions
and record them on Ethereum
ledger
Miners compete to solve a
difficult mathematical problem
based on a cryptographic hash
algorithm
Miners provide collateral in the
form of hardware/hash-power to
seek returns in exchange for
Proof of stake
Validators
Validators participate in building
consensus
Validators post collateral in form of
ETH
Validators verify and attest to the
validity of blocks
Validators vote on the next block,
and the weight of each validator’s
vote depends on the size of his
stake

13. VALIDATOR
Generate
private/public key pair
Generate
private/public
withdrawal key pair
ETHSubmit deposit
Public Key
Withdrawal Public Key
Deposit 32ETH
Wait ~3hrs for activation
Work on assignment
Assignment
Attestation
Block

14. VALIDATOR COST AND REWARD
Cost
Computing cost
Lockup of 32 ETH
Uptime and maintenance cost
Security of the environment cost
Reward

15. VALIDATOR CLUSTER?

16. SOLVING PERFORMANCE
PROBLEM
Sharded chains

17. SHARDING

18. SHARDING BENEFITS
No Sharding
Very limited throughput (7-15
trans/sec with ETH1.0)
Node should process all
transactions (download,
compute, store, read)
Sharding
Throughput can be increased by
increasing number of shards
Only transactions within the
shard should be processed
Each one of the shards will have
as high a capacity (and likely
more with phase 1) than the
current existing Ethereum chain.

19. SHARDING ROADMAP
PoS beacon
chain without
shards
Basic sharding
without EVM
EVM state
transition
function
Light client state
protocol
Cross-shard
transactions
Tight coupling
with main chain
security
Super-quadratic
(exponential)
sharding

20. DEMO

21. START VM ON GCP

22. ate
tall apt-transport-https ca-cer
gnupg-agent software-properties-com
://download.docker.com/linux/debian/gpg
-
ository "deb [arch=amd64] https://do
inux/debian
s)
ate
tall docker-ce docker-ce-cli containerd.io
INSTALL DOCKER

23. docker run -it -v $HOME/prysm:/data -p 4000:4000 -p 13000:13000 --name
beacon-node
gcr.io/prysmaticlabs/prysm/beacon-chain:latest
--datadir=/data
RUN BEACON CHAIN

24. WAIT FOR THE NODE TO SYNC-UP

25. ACTIVATE VALIDATOR

26. STAY IN TOUCH
Gene Leybzon https://www.linkedin.com/in/leybzon/
https://www.meetup.com/members/90744
20/
https://www.leybzon.com