Ethereum PoS

Transcript

foundations research team in just 10 minutes I'm going to share the top four things to know about ethereum proof of stake so first off let's talk about the elephant in the room energy consumption we know proof of work to be extremely wasteful in its energy consumption in fact when you mention proof of work I can't help but think about large industrial mining Farms with the shift to proof of stake ethereum is doing away with with the proof of work energy intensive mining let's have a look at its energy consumption so if the scale of the object were to signify its energy consumption then ethereum proof of stake

is comparable to a screw to put things in perspective the ethereum of today would be the Leaning Tower of Pisa the shift to proof of stake marks a 99.9 percent reduction in power usage and to look at the bigger picture Bitcoin would be comparable to the Burj Khalifa So the tallest building on earth the Tower of Pisa and a teeny tiny school and while we are on the subject of resource consumption let's also look at the hardware resources required to participate in proof of stake with proof of work we know that you require expensive mining rigs to participate in the protocol meaningfully

but with ethereum proof of stake even regular laptops can run ethereum stating software thanks to the engineering efforts of some of our client teams sitting right there right so let's have a look at some home staking setups on the right is a medium-sized home mining 10 gpus housed inside a cooling tent in the bookcase on the left is a small square puck that is a mini computer that can run ethereum stating software these Intel nuc class machines are quite popular among homesteakers and here we have a regular Old Dell

Optiplex being used for homesteaking but my favorite setup of all is that of my colleague David's his setup sits in the back of his RV the computer is solar powered and with satellite internet he can stay comfortably from even the back roads of Colorado isn't that a great setup and such a contrast from large mining Erics that are required for proof of work before we go further let's talk about consensus the engine that powers proof of State when Research into the new proof of State protocol began the state-of-the-art consensus technology was what we call bft consensus

in these processes which participant must send a message to every other participant at each step of the process as you can imagine this gets quite expensive in the number of messages being passed around in fact it the number of messages grow quadratically with the number of participants and so these protocols don't scale well beyond the tens of participants while there's been Decades of research into these protocols there has been no major in incentive for massively scaling the number of nodes but that was before the arrival of blockchains with ethereum proof of stake we have the ambitious goal of supporting up to a million plus participants

and the participants here refers to the validators not the users There's no practical limit on the number of users and while we are on the uh sorry about that and ethereum scales massively without compromising on security thirty four thousand seven hundred eight that is the level of security in the beacon chain today let me explain further in just 18 minutes after a block is produced it is expected to become finalized once the block is finalized it's impossible to remove it from the chain without bearing a large cost the number on the screen if an attacker attempts to revert a

block then their validators will be identified and in the true Spirit of proof of stake their deposits will be burned this notion of crypto Economic Security is the strongest form of safety in blockchains let's have a look at how ethereum Compares with different protocols proof of work protocols such as Bitcoin and ethereum today don't provide crypto Economic Security nor do protocols such as Avalanche bft based protocols such as tenement don't provide the massive scalability and don't make progress when participation rates are low as you can see ethereum provides some unique guarantees to its users and we believe this makes ethereum uh

suitable for the decentralized backbone of tomorrow now let's take a look at some of the future improvements we are working on faster confirmations in just 12 seconds after a block is produced uh a little over three percent validators make attestations for it this amounts to about 13 000 in the beacon chain today we are exploring techniques to utilize these to provide a quick confirmation score just like proof of work this next one is something I'm extremely excited about distributed validated technology allows a cluster of nodes to come together and operate a single validator this has the potential to enable trustless taking pools but different

entities come together and collaborate in running a single validator this would reduce the capital requirements needed to participate in proof of State so to sum it all up the four things to know about ethereum it is energy efficient reducing ethereum's power usage by 99.9 percent and it delivers on the three pillars of the blockchain Grail it's highly secure providing the strongest form of security known in blockchains crypto Economic Security it delivers on decentralization by maintaining lightweight system requirements you can participate in proof of stake at home on your regular laptop

and it's highly scalable supporting up to a million plus participants and with the roll-up Centric approach it will massively scale its transaction capacity as well this is something metallic will talk about next thank you that's all from me [Applause]