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Ethereum_1x_Definition_part_1.html
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Ethereum 1x Definition (part 1) - HackMD
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<div id="doc" class="markdown-body container-fluid comment-enabled" data-hard-breaks="true"><h1 id="Ethereum-1x-Definition-part-1"><a class="anchor hidden-xs" href="#Ethereum-1x-Definition-part-1" title="Ethereum-1x-Definition-part-1"><span class="octicon octicon-link"></span></a>Ethereum 1x Definition (part 1)</h1><h2 id="Objective"><a class="anchor hidden-xs" href="#Objective" title="Objective"><span class="octicon octicon-link"></span></a>Objective</h2><p>This document aims to define and describe the Ethereum 1x initiative, with a primary goal of being used as a guide for funding and other support that various improvement proposals and projects should receive under the auspices of Ethereum 1x.</p><h2 id="Definition"><a class="anchor hidden-xs" href="#Definition" title="Definition"><span class="octicon octicon-link"></span></a>Definition</h2><p>We define Ethereum 1x as a set of solutions that seek to address the causes of the most critical challenges faced by the agents in the Ethereum system. TODO: this hinges on the determinations of which challenges are more critical than the others.</p><h2 id="Methodology-and-terminology"><a class="anchor hidden-xs" href="#Methodology-and-terminology" title="Methodology-and-terminology"><span class="octicon octicon-link"></span></a>Methodology and terminology</h2><p>For the purpose of this analysis, we view Ethereum as a set of interacting agents. Their interaction is described by the concepts of contributions and challenges.<br>
Ethereum system itsef is an emergent entity, and only exists as long as its crucial actors keep making their contributions. The goal of the Ethereum 1x as an initiative, is to preserse and improve the “wellfare” of this emergent entity, rather than any agents specifically.</p><p>We split the definition into two three parts. First parts serves as an introduction to the challenges that the agents of Ethereum dace. Second parts goes into more (technical) details of the challenges, and attempts to rank (prioritise them) against each other. Third part discusses their causes and solutions. It is possible that the third part will be further subdivided to separate the discussions of causes and solutions.</p><h3 id="Agents"><a class="anchor hidden-xs" href="#Agents" title="Agents"><span class="octicon octicon-link"></span></a>Agents</h3><p>Agents make contributions and thus, collectively, give rise to the Ethereum system. Their contributions also give the Etherum system its properties, such as resilience, efficiency, accessibility. Agents are shown as ellipses.</p><pre class="graphviz"><!--?xml version="1.0" encoding="UTF-8" standalone="no"?-->
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</pre><h3 id="Contributions"><a class="anchor hidden-xs" href="#Contributions" title="Contributions"><span class="octicon octicon-link"></span></a>Contributions</h3><p>We attempt to enumerate the most valuable and crucial contributions of the agents to the Ethereum system.</p><pre class="graphviz"><!--?xml version="1.0" encoding="UTF-8" standalone="no"?-->
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</pre><h3 id="Challenges"><a class="anchor hidden-xs" href="#Challenges" title="Challenges"><span class="octicon octicon-link"></span></a>Challenges</h3><p>Challenges (how critical they are, i.e. if the challenge is not met, will agents’s contribution degrade or stop?) that agents face. Shown as octagons.</p><pre class="graphviz"><!--?xml version="1.0" encoding="UTF-8" standalone="no"?-->
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</pre><h2 id="Agents1"><a class="anchor hidden-xs" href="#Agents1" title="Agents1"><span class="octicon octicon-link"></span></a>Agents</h2><p>For the purpose of this document, we will consider a somewhat coarse-grained grouping of Ethereum agents. In the later revisions of the document, the grouping can be expanded or made more fine-grained.</p><pre class="graphviz"><!--?xml version="1.0" encoding="UTF-8" standalone="no"?-->
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</pre><p>Each agent type makes certain contributions to the wellfare of the Ethereum system, and, in turn faces challenges. If these challenges become too great, then the contribution reduces or stops, and the Ethereum system suffers or potentially ceases to exist.</p><h2 id="End-users-agent"><a class="anchor hidden-xs" href="#End-users-agent" title="End-users-agent"><span class="octicon octicon-link"></span></a>End users (agent)</h2><p>End users generally contribute “usage” to the system. Some usage is directly beneficial, as it brings more resources into the system (for example, purchasing Ether), some - only indirectly (intense usage attract more users).<br>
End users are mostly concerned with lack of use cases, transactional cost of using Ethereum dapps or Ether currency, as well as the safety of their funds and data.</p><pre class="graphviz"><!--?xml version="1.0" encoding="UTF-8" standalone="no"?-->
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</pre><h3 id="Estimating-cost-of-a-transaction-challenge"><a class="anchor hidden-xs" href="#Estimating-cost-of-a-transaction-challenge" title="Estimating-cost-of-a-transaction-challenge"><span class="octicon octicon-link"></span></a>Estimating cost of a transaction (challenge)</h3><p>By cost of transactions for the end user we normally understand the gas cost of those transactions multiplied by the current cost of gas. Users may often overpay for gas because they cannot reliably predict which gas price level will ensure the inclusion of their transactions with required urgency.</p><h3 id="Assessing-safety-of-transactions-challenge"><a class="anchor hidden-xs" href="#Assessing-safety-of-transactions-challenge" title="Assessing-safety-of-transactions-challenge"><span class="octicon octicon-link"></span></a>Assessing safety of transactions (challenge)</h3><p>Often users need to weight risk of exploit against the benefit they hope to get from the transaction. Initial design of Ethereum did not put a lot of empphasys on making that risk assessment easier.</p><h2 id="Node-operators-agent"><a class="anchor hidden-xs" href="#Node-operators-agent" title="Node-operators-agent"><span class="octicon octicon-link"></span></a>Node operators (agent)</h2><p>Cost of operating a full node is rising. Below are the main cost categories.</p><pre class="graphviz"><!--?xml version="1.0" encoding="UTF-8" standalone="no"?-->
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</pre><h3 id="Long-time-to-sync-a-new-node-challenge"><a class="anchor hidden-xs" href="#Long-time-to-sync-a-new-node-challenge" title="Long-time-to-sync-a-new-node-challenge"><span class="octicon octicon-link"></span></a>Long time to sync a new node (challenge)</h3><h3 id="Cost-of-storage-devices-challenge"><a class="anchor hidden-xs" href="#Cost-of-storage-devices-challenge" title="Cost-of-storage-devices-challenge"><span class="octicon octicon-link"></span></a>Cost of storage devices (challenge)</h3><p>All main-net capable implementations require at least SSD to maintable acceptable operating speed, and NVMe is desirable for a initial sync (downloading all the blocks and reconstituting the current state of the blockchain).</p><h3 id="High-internet-traffic-challenge"><a class="anchor hidden-xs" href="#High-internet-traffic-challenge" title="High-internet-traffic-challenge"><span class="octicon octicon-link"></span></a>High internet traffic (challenge)</h3><p>After initial sync, traffic usage should not be very high. However, if many new nodes joining the network, the outgoing traffic of the incument nodes may increase, to serve blocks and initial state to the new-joiners.</p><h3 id="Complex-operations-to-run-nodes-challenge"><a class="anchor hidden-xs" href="#Complex-operations-to-run-nodes-challenge" title="Complex-operations-to-run-nodes-challenge"><span class="octicon octicon-link"></span></a>Complex operations to run nodes (challenge)</h3><p>Ethereum nodes transmit, process, and store large amounts of data. They also often have very little tolerance to downtime. These two characteristics mean that management of Ethereum nodes can be non-trivial.</p><h2 id="Dapp-DevOps-agent"><a class="anchor hidden-xs" href="#Dapp-DevOps-agent" title="Dapp-DevOps-agent"><span class="octicon octicon-link"></span></a>Dapp DevOps (agent)</h2><p>Dapp developers and operators (devOps) are mainly concerned with two issues: scalability and security. For some potential dapps, Ethereum as a platform does not provide enough capacity in terms of transactional throughput, cost of transactions, capacity of data retention.<br>
These two issued can be thought of mirroring the issues facing the end users. Higher scalability correlates to the lower cost for users. Better security measures for smart contracts translate to easier risk assessment for the users.</p><pre class="graphviz"><!--?xml version="1.0" encoding="UTF-8" standalone="no"?-->
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</pre><h3 id="Limited-transaction-throughput-challenge"><a class="anchor hidden-xs" href="#Limited-transaction-throughput-challenge" title="Limited-transaction-throughput-challenge"><span class="octicon octicon-link"></span></a>Limited transaction throughput (challenge)</h3><p>Some use cases of smart contracts and currency require certain level of scalability, which usually translates to how quickly a transaction gets “confirmed” related to how high gas price is paid. If scalability of the system is not enough, some more complex constructions (e.g. Level 2 solutions like state channels and Plasma) might need to be employed, at the cost of increased complexity.</p><h3 id="Assessing-safety-of-transactions-challenge1"><a class="anchor hidden-xs" href="#Assessing-safety-of-transactions-challenge1" title="Assessing-safety-of-transactions-challenge1"><span class="octicon octicon-link"></span></a>Assessing safety of transactions (challenge)</h3><p>This challenges is shared with the end users.<br>
Whenever users’ interaction with the Ethereum system are less trivial than currency transfer, some security analysis is usually performed, to demonstrate to the potential users of smart contracts that most likely their transactions will not have unintended consequences. So far the tradition is that the additional cost of performing security audits of the code, or formal verification, or other security measures is paid by the dapp developers.</p><h2 id="Core-developers-agent"><a class="anchor hidden-xs" href="#Core-developers-agent" title="Core-developers-agent"><span class="octicon octicon-link"></span></a>Core developers (agent)</h2><p>Contribuion of core developers is in developing and maintaining the software that, when run on the computers connected to the Internet, gives rise to the Ethereum network.<br>
Development of a fully functional Ethereum implementation which is capable of run on the mainnet is challenging.</p><pre class="graphviz"><!--?xml version="1.0" encoding="UTF-8" standalone="no"?-->
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</pre><h4 id="New-implementations-challenge"><a class="anchor hidden-xs" href="#New-implementations-challenge" title="New-implementations-challenge"><span class="octicon octicon-link"></span></a>New implementations (challenge)</h4><p>It is difficult to create new indepdendent implementations (clients) that are capable of working with the main net. Lack of implementation diversity leads to core developers being “conservative” by default.```</p><h4 id="Product-vs-system-challenge"><a class="anchor hidden-xs" href="#Product-vs-system-challenge" title="Product-vs-system-challenge"><span class="octicon octicon-link"></span></a>Product vs system (challenge)</h4><p>It is difficult to balance product improvements (performance, usability), and the upgrades of Ethereum. Example: preparation for the Istanbul hard fork vs finishing Geth 1.9</p><h4 id="Backwards-compatibility-challenge"><a class="anchor hidden-xs" href="#Backwards-compatibility-challenge" title="Backwards-compatibility-challenge"><span class="octicon octicon-link"></span></a>Backwards compatibility (challenge)</h4><p>It is difficult to balance backwards compatibility (with the existing contracts), and the rule changes that are neccessary for Ethereum system to be sustainable.</p><h2 id="Entire-diagram"><a class="anchor hidden-xs" href="#Entire-diagram" title="Entire-diagram"><span class="octicon octicon-link"></span></a>Entire diagram</h2><pre class="graphviz"><!--?xml version="1.0" encoding="UTF-8" standalone="no"?-->
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</pre><h2 id="TODOs"><a class="anchor hidden-xs" href="#TODOs" title="TODOs"><span class="octicon octicon-link"></span></a>TODOs</h2><ul>
<li class="task-list-item"><input type="checkbox" class="task-list-item-checkbox" disabled="disabled"><label></label>Discuss and correct methodology, wording, and content (specically the challenges)</li>
<li class="task-list-item"><input type="checkbox" class="task-list-item-checkbox" disabled="disabled"><label></label>Levels of criticality for challenges, perhaps expressed by colours</li>
<li class="task-list-item"><input type="checkbox" class="task-list-item-checkbox" disabled="disabled"><label></label>Add remaining open projects to the solutions</li>
<li class="task-list-item"><input type="checkbox" class="task-list-item-checkbox" disabled="disabled"><label></label>Place correct hyperlinks on all the nodes in the diagram</li>
</ul></div>
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<li class=""><a href="#Ethereum-1x-Definition-part-1" title="Ethereum 1x Definition (part 1)">Ethereum 1x Definition (part 1)</a><ul class="nav">
<li><a href="#Objective" title="Objective">Objective</a></li>
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