The Vitalik Buterin of Ethereum [ETH] suggests a new fixed-rate model for transactions


Vitalik Buterin, the co-founder of Ethereum, recently opened a GitHub number to propose an idea to modify the existing higher-cost auction model for the inclusion of transactions in a fare model fixed.

After publishing it on several online forums and more recently discussing it during the Crypto 2018 event, the Zcash community welcomed his idea and suggested that he start a discussion about it

Vitalik explains that current public blockchain systems that also include Ethereum and Zcash adopt a particular limit block size and a paid market to regulate the inclusion of transactions. This is done to prevent users from sending spam to the blockchain they say. However, this technique forces the senders of the transactions to pay the costs imposed on the network.

Buterin argues that the cap-auction method is the only method that can be used to solve the aforementioned problem. He also believes that other methods may prove to be more beneficiaries and worthy of being examined.

Poses three problems with the existing model:

  1. A mismatch between the volatility of transaction fee levels and the social cost of transactions [19659007] Inefficiencies of first price auctions
  2. Instability of blockchain without reward for the block

Buterin goes on to explain that his idea will eliminate all three issues under discussion. The proposal consists in eliminating the calculations of the current commissions that cause volatility and introduce a protocol that determines a fixed commission that combines it with a formula that allows the incorporation of capacity in real time.

Buterin said:

"if the last block was 50% full, leave the cost unchanged, if the last block was 10% full, drop it 10% if the last block was 90% full, increase it by 10%. "

Buterin states that his method will eliminate the drawbacks from the mismatch of social costs due to the volatility of commissions. He also stated:

"Intuitively, the tariff adjustment mechanism works as a fixed tax in the short run and a limitation in the long run, and it turns out that due to the arguments of 1974 by Martin Weitzman, fixed taxes are probably better than a limit to the circumstances in which today are practically all public blockchain and probably will continue to be there. "

According to Buterin, this methodology will replace the auction with a fixed fee, simplifying the calculation of taxes. In his words:

"calculate the tax for the next block, if you can afford it, otherwise do not do it."

He also mentions that the above theory is practically in line with the Ethereum blockchain but can also be adopted by Zcash because the method is theoretically in line with public blockchains.

At the Ethereum meeting at the beginning of this year, Vitalik Buterin gave the keynote address in which he discussed the idea. The co-founder believes that much more research can take place in this particular area:

"So there is still a lot of things to implement, to think in terms of what is the right way to implement this type of schemes and there are still many more research necessary, but again the point here is right that, in addition to the search for technical improvements such as "gaming proof", such as scalability and privacy improvements as evidence of knowledge there are many of these improvements that can be done on the economic layer in order to substantially improve the efficiency of blockchains, make blockchains easier. "

He also added:

" basically by providing better incentives so that users stop to impose such a large social cost and this is something that you know we've been thinking about a lot and we really need to be a need to think about something more in doing a lot of attention. "[19659021] [ad_2]
Source link