Daily Crypto, Finance, and Tech News Summary – October 10, 2023

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Welcome, and thank you for being part of the MyZucoins community! Let’s get into an interesting piece of crypto, finance, or tech news to stay ahead.

Renovate or rebuild a house

Crossroads For Ethereum: To Renovate Or Rebuild?

A recent post by Ethereum’s co-founder Vitalik Buterin called “Should Ethereum be okay with enshrining more things in the protocol?” discusses Ethereum’s philosophy of keeping its core as simple as possible and building protocols on top.

There’s a big chat happening in the Ethereum world about whether they should pack more features directly into the core of Ethereum or just keep it simple and let people build extra stuff on top.

Ethereum wanted to keep things neat and tidy from the get-go, like a minimalist’s dream.

But as time went on, some folks started thinking, “Hey, maybe we should add more bells and whistles directly into Ethereum.”

Now, there’s this thing called account abstraction, which is basically about making transactions super simple.

They tried a few ways to do it, like with EIP-86 and EIP-2938, but each had its own set of hiccups.

Then came along ERC-4337, which was like a cool add-on that didn’t mess with the core.

Even with that, some people are looking to put these parts directly into Ethereum.

The big reason?

Well, it could make things run smoother and cheaper, reduce the risk of big code mess-ups, and ensure everyone plays fairly without censoring others.

It would help to standardize the use of those features.

Here’s the issue: Even with all of these discussions, they’re still scratching their heads, wondering what’s the best way forward.

And while all this is happening, many are diving deeper into “layer 2” solutions, which are like add-ons to Ethereum.

Many of these add-ons are making things a bit more centralized, which is a bit of a twist in the plot!

That’s because most of these layer 2 solutions typically pull components out of Ethereum, and then gradually work the results back in.

Solutions such as these are clearly workarounds, as they place trust on third-party extensions to do their task.

Users are essentially placing trust in centralised services as a stop gap, hoping they follow suit and submit results back to the Ethereum blockchain when they are ready.

It seems the Ethereum community could be at a crossroads, trying to figure out the best way to evolve without losing its essence, while managing increasing amounts of complexity and centralization concerns.

It’s like deciding whether to renovate your old house or just buy a new one with all the modern fittings.

The jury’s still out on what’s best! Read more here.

More On This Topic:

Decentralizing Ethereum: Vitalik Buterin’s 10-20yr long roadmap for a simpler, resilient network.

Blockchain’s 51% paradox: Power, trust, and the fight to keep decentralization. 

High US concentration of Ethereum nodes raises decentralization concerns.

Industry still isn’t close to solving the “blockchain trilemma”.

Balancing Simplicity And Flexibility Is Hard

One critical takeaway from Ethereum’s current predicament is the importance of both simplicity and flexibility in the core protocol.

They sound like opposites, but careful decisions in a system’s infrastructure can serve both sides pretty well.

The Splitchain network, powering Zucoins, is designed from the ground up as a “layer 1” solution.

It’s like that favorite Lego set, kept simple and neat, allowing for add-ons without altering the fundamental design.

By keeping the core streamlined, Splitchain reduces the risk of significant code issues and maintains compatibility, much like Ethereum’s original intent.

In the realm of transaction processing, Ethereum’s struggle with account abstraction, with the aim of making their crypto wallets easier to manage, offers valuable insight.

Zucoins’ wallet, on the other hand, is designed to be straightforward and user-friendly.

The Splitchain protocol itself has all kinds of points where flexible extensions can be made, without leaving the core system.

It includes everything from transactions themselves, which are versioned and can contain representations of metadata, to the node network and wallet app’s easily-extendable architecture.

The shift towards layer 2 solutions in Ethereum’s ecosystem highlights an interesting trend.

While these solutions provide additional features, they also introduce centralization risks, contrary to the decentralization ethos of blockchain technology.

Splitchain can learn from this, ensuring that its network focuses on a decentralized structure.

The network’s unique design, where nodes cache data and serve it to peers, is an example of this commitment to decentralization and pushing more power back to users.

Lastly, Ethereum’s crossroads moment underscores the importance of proactive evolution in the crypto space.

As Ethereum debates whether to renovate or buy new, Zucoins and Splitchain have anticipated the future needs and adapted accordingly.

By staying ahead of the curve, Zucoins and Splitchain can lead the next generation of crypto’s evolution.

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All the best,
Peter & Rob

Disclaimer: Of course, this is not advice, financial or otherwise. It’s also important to consider the risks and challenges associated with any potential benefits.