Vitalik Buterin the co-founder of the Ethereum smart contracts blockchain has introduced the Ethereum Improvement Proposal (EIP) 2929 as a possible solution to the rising gas fees of the network.
As the world of decentralized finance (DeFi) continues to expand, transaction fees (gas fees) on Ethereum, the engine room of most DeFi protocols has increased crazily, hitting an average of over $15.21. Now, Buterin has drafted the EIP 2929 as a possible solution to the problem.
As stated in the EIP 2929 draft on GitHub, the proposal seeks to increase the gas cost for the *CALL, BALANCE, EXT*, and SELFEDESTRUCT state access opcode family. For the uninitiated, in computer programming, an operation code (opcode) is the part of a machine language instruction that specifies the task to be performed. These opcodes are responsible for updating the Ethereum state.
A section of the EIP2929 draft reads:
“This proposed EIP increases the costs of these opcodes by a factor of ~3, reducing the worst-case processing time to ~7-27 seconds. Improvements in database layout that involve redesigning the client to read storage directly instead of hopping through the Merkle tree would decrease this further, though these technologies may take a long time to fully roll out, and even with such technologies the IO overhead of accessing storage would remain substantial.”
As with other EIPs such as the EIP 1559 which seeks to make it possible for all transactions to pay the same gas fee, Buterin’s proposal still has to be deliberated upon by the community and as such the end to the crazily high Ethereum gas fees menace may not be in sight just yet.
Against that backdrop, Hendrik Hofstadt, founder of Certus Oneit, has made it clear that the best bet is for Ethereum developers to tackle the issue by incorporating their own Layer-2 scaling solutions.
Notably, a couple of stablecoin projects on the Ethereum network are already formulating solutions to the Gas fees challenge on the network.
In late August, Circle, and Coinbase, members of the Circle Consortium released USDC 2.0, an upgraded version of the stablecoin which is designed to support gasless transactions. And on September 1, 2020, reports emerged that the highly controversial stablecoin, Tether (USDT) is looking to integrate ZK-Rollups, as part of measures to reduce transaction fees and congestion on Ethereum.
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Ethereum Classic suffers another 51% attack
The Ethereum Classic (ETC) network was hit by another 51% attack on August 29, causing the reorganization of more than 7,000 blocks just weeks after proposing security upgrades.
In a tweet, Ethereum Classic confirmed the attack and promised it is working on potential solutions to the problem.
“While ETC is still making progress in evaluating proposed solutions, we are aware of the current risk to the network at these low hash rate levels. To miners, exchanges, and other service providers we suggest keeping confirmation requirements levels well above 7K for now.”
The attack comes a few weeks after developers proposed changes to the network over the next three to six months in hopes of warding off further incursions. Immediate actions include a defensive mining cooperation with mining pools to maintain consistent and even increased hashrates, advanced network monitoring, whitelisting addresses and a finality arbitration system to inhibit chain reorganization.
ETC said in another tweet it’s currently at “~3% of the overall network hashrate” and is aware that repeated attacks may occur while testing out these changes.
This month alone saw Ethereum Classic suffer at least two 51% attacks before this latest one. Some exchanges like OKEx, alarmed at the constant attacks, even warned ETC it will delist it if security is not beefed up.
How to migrate a smart contract from Ethereum to EOS
Migrating a smart contract from Ethereum to EOS is now possible. It may sound like science fiction, but this is what the Callisto Support team has announced, stating that it is possible to migrate any smart contract from the Ethereum blockchain to the EOS one.
As blockchain technologies evolve quickly, more and more developers want to migrate their DApps to another platform, such as EOS, the most advanced to date.
Callisto Network provides support throughout this process.
📌https://t.co/azXOnqGTZ4#CLOme_to_EOS #ERC20 #DApps $CLO pic.twitter.com/f3u4XHgA8U
— Callisto Support (@CallistoSupport) August 27, 2020
On the migration page, we can read how over time the Ethereum blockchain has been taken as a reference point for many developers and projects who have decided not to explore other solutions.
In fact, thousands of projects with as many tokens were born on the Ethereum blockchain, but now, due to various issues, such as the slowness of the network or the increase in gas costs, many teams are starting to evaluate other blockchains as well.
In this scenario, an alternative is to migrate the internal smart contract and dApp (decentralized application) to faster blockchains.
As some people will remember, Block.one, the company behind the development of the EOS blockchain, has recently launched a challenge with a prize of $200,000 to create a smart contract that could replicate the EVM (Ethereum Virtual Machine) on EOS and thus run all the smart contracts written in Solidity, the famous programming language used to develop smart contracts on the Ethereum blockchain.
This challenge was won a couple of months later by Syed Jafri whose project eosio.evm allows running the whole Ethereum blockchain on EOS.
Returning to the news, the Callisto Support team offers a service that allows the entire Solidity smart contract to be completely rewritten in the C++ language that is compatible with EOS, allowing everything to be brought to the same conditions and functions as the original dApp.
The service includes:
As a result, anyone can now make a request directly to the team, via the appropriate section on the website, to collaborate and bring dApps to EOS, which is feeless, i.e. there is no charge for individual transactions.
This is a very important development because now all the various dApps and protocols that have been created some time ago on Ethereum will be able to benefit from a major upgrade.
Author: By Alfredo de Candia
– 5 Sep 2020
Ethereum – Wikipedia
This section needs expansion. You can help by adding to it. (September 2020)
On social governance
Our governance is inherently social, people who are more connected in the community have more power, a kind of soft power.
Is it time for DeFi to look beyond Ethereum?
Bitcoin may have been confined to certain price levels, forcing it to endure quite a bit of sideways movement, over the past few months. However, parallelly, the DeFi space has registered a major boom. The growth of DeFi this year has also raised questions about the sustainability of the platform it is based on – Ethereum, especially since the total value locked figures have risen from $1 billion towards the beginning of 2020 to a whopping $9 billion, at press time.
On a recent episode of the Unchained podcast, Haseeb Qureshi, Managing partner at Dragonfly Capital, discussed the growth of DeFi and what its future holds, along with its implications for Ethereum.
While the DeFi ecosystem has seen unprecedented interest this year, it has also been a driving force behind the surge in transaction fees and gas prices on Ethereum’s platform. While Ethereum continues to push for its eventual transition to ETH 2.0, whether or not DeFi will be sustainable for Ethereum remains a concern.
Qureshi argued that there is a significant chance that this is going to lead to other venues opening up for the DeFi ecosystem. He noted,
“Gas prices being as high as they are, obviously they are this high because people are willing to pay these prices. And those people are mostly whales and people who are trading at very high volume…but eventually, they’re going to be other places that open up other venues”
However, while the DeFi boom has been received with much fanfare, it does have serious implications for Ethereum’s sustainability. In fact, a recent report by Glassnode had highlighted how DeFi is driving the surge in gas prices. The report also elaborated on the role of DeFi applications like DEXs (Decentralized exchanges) in this regard, adding,
“DeFi applications (specifically DEXs) are taking up the majority of the gas fees used by the “other contracts” category. Many of these protocols are not just transferring tokens between addresses, but instead are using more gas-intensive smart contracts to perform actions such as staking, pooling, and lending.”
Qureshi went on to say that it is likely that other platforms that have specialized chains for DeFi are likely to play a very important role in the future. Such solutions in the early stages are going to facilitate much of the lower expense transactions that are coming through, he said.
“There will be some second place with some kind of bridge, whether it be a layer to whether it be an interoperability solution like Polkadot or Cosmos, or whether it be another layer one.”
Author: by admin
Why Soaring Gas Fees Won’t Let An Ethereum Killer Gain The Upper Hand
Ethereum has both benefitted and its rep been harmed from the recent explosion in farming for DeFi tokens. As investors poured liquidity into these tokens, sending and locking up so much ETH sent prices of the crypto asset soaring. But it also at the same time sent gas prices spiking even higher.
As investors became frustrated it led to claims of Ethereum’s untimely demise at the hands of Polkadot, EOS, and all the other proposed “ETH Killers.” However, a crypto fund manager has revealed a strong case to why that’ll never happen.
This week, frustrations boiled over regarding rising Ethereum gas fees. The smart contract focused altcoin is the platform of choice for nearly all DeFi tokens. Dapps and DEX platforms are a dime a dozen on Ethereum, prompting using the network to cost a pretty penny.
Money puns aside, it has become very costly to send ETH or any ERC-20 tokens built on the Ethereum blockchain. An example of it costing $15 in gas fees to send just $50 in USDC made rounds across crypto Twitter showing off just how out of control things have gotten.
A crypto bashing party broke out, with those participating claiming that if ETH 2.0 doesn’t arrive soon, things could get “gloomy” for the top-ranked altcoin in the future.
However, Felix Hartmann, Managing Partner at Hartmann Capital, has a compelling case for why that just won’t happen, and Etheruem will continue to reign supreme.
ETHUSD Daily - Were Gas Fees Partly Responsible For ETH Dump? | Source: TradingView
Hartmann, who is the head of a crypto asset management firm and a dystopian author, backs up Ethereum with a flurry of facts. The firm he heads is a member of the Forbes Finance Council. He compares Ethereum to the “hottest night club in town” that everyone wants to get into.
When the most popular venue is at max capacity, it doesn’t make it any less ‘the place to be.’ If anything, it can make the venue that much more inclusive, by pushing away outsiders and serving only those willing to pay the premium to build on the best.
Counter-Point | Soaring Ethereum Fees Could Cause A Gloomy Future For The Altcoin
The current trend even benefits the industry as a whole, he says. More people using Dapps means more testing, more innovation, and a faster-growing space with more liquidity for real projects.
According to the fund manager, all mania phases feature silliness, scams, and in the midst, innovation. He says the Sushis, Pizzas, and Hot Dogs currently cooking up the crypto space will eventually die out, but users will already be onboarded on Etheruem and DeFi.
Rising gas fees show this onboarding taking place at a massive, rapid scale. And that cannot be a bad thing.
Author: Tony Spilotro