Zero inflation ethereum (0.22% a year) may be closer than thought with Danny Ryan, the ethereum 2.0 coordinator, revealing work on a merger not only has began, but there are now simulations.
An eth2 phase 1 client has ‘spoken’ to a Geth client, marking one of the biggest milestone in eth protocol development.
“Guillaume’s Catalyst – a version of geth which defers its consensus to RPC calls (i.e. an eth2 client) – is built and ready to go; and Mikhail’s Phase 1 implementation is running fully sharded eth2 simulations with select shards deferring block production and validity calls to a local, stubbed eth1-engine,” Ryan said.
In an ethereum 2.0 devs call, Vitalik Buterin, the ethereum co-founder, said:
“Some clients have done some work on the spec: e.g. Phase 1 simulator from PegaSys, and Terence’s work. Most engineering work currently focused on getting Ph0 done, but that might need to shift in a couple of months.
Should one of the client teams shift over? Maybe one whose client is maybe not ready for Ph0.”
Terence Tsao is an ethereum 2.0 developer for Prysmatic and appears to be part of a group called TXRX Research which says they are an Ethereum 2.0 Research Team.
Likewise for Mikhail Kalinin, an eth 2.0 dev for TXRX. While Guillaume Ballet is an ethereum core developer working on Geth.
“Ballet’s Catalyst and Kalinin’s eth2 phase 1 client are now working together! Incredibly exciting milestone,” Ryan said.
Making this announcement fairly surprising because few were aware work had advanced to the stage where they had this conceptualized and now were even getting clients to ‘talk’ to each other.
As you know Proof of Stake (PoS) is to testnet in about a week, with the PoS chain to launch in November.
That’s called phase zero with phase one to follow. Phase 1 is storage sharding, something that should be relatively easy because the PoS chain will have sharding the moment the genesis block launches.
That is skeleton sharding however, but it does the job of getting these validators to the node bundles (shards) and getting it all to work together.
So adding some storage to what already is a shard skeleton, should be easy, with then what is called phase 1.5 following.
That phase will be the biggest event since ethereum launched because it removes miners completely, with the current ethereum network so becoming proof of stake only.
That’s what this Geth and ethereum 2.0 clients are doing. The Geth one is ‘reading’ or is taking orders from the ethereum stakers, rather than miners, while the eth2.0 one is seeing what the geth one is doing and is also giving the ‘orders.’
In effect, they have merged but obviously this is still early work, yet it suggests ethereum might go full proof of stake potentially even by next summer.
From an investment perspective that would be a huge event because total block rewards would fall to just 0.22 eth per block as opposed to the current 2 eth.
At that point ethereum’s monetary policy should become fixed, effectively forever or as far as reasonably foreseeable, although there has been no decision on that with the focus being on getting out this almost total drop of inflation.
All of it suggesting ethereum is coming together and is heading towards its final form where fundamental matters are concerned regarding scaling and monetary policy, with the latter now taking concrete shape.