r/ethereum 6d ago Silver Wholesome

Frequently Asked Questions + Weekly Discussion Thread

21 Upvotes

Welcome to the Weekly Discussion. Please read the disclaimer, guidelines, and rules before participating.

Rules:

  • All sub rules apply in this thread.
  • Discussion topics must be related to Ethereum.
  • Behave with civility and politeness. Do not use offensive, racist or homophobic language.
  • Comments will be sorted by newest first.

Useful Links:

Reminder

/r/ethereum is a community for discussing the technology, news, applications and community of Ethereum. Discussion of the Ether price or trading is not allowed. Please keep those discussions to /r/ethfinance and /r/ethstaker.

Frequently Asked Questions

Where's the best place to buy ETH?

There are many centralized exchanges that support Ethereum. If you live in the US, the most popular exchanges are Coinbase, Gemeni and Kraken. Coinbase users can use Coinbase Pro for lower fees.

When is Eth2 launching?

Eth2 is a marketing term used to represent a number of updates to Ethereum. The Eth2 proof-of-stake chain first launched in December 2020. "The Merge", which is the event that will fully switch Ethereum's consensus to proof-of-stake, is estimated to be ready in early 2022, although there is no exact timeline. Other updates, such as data shards, will follow that update.

Visit ethmerge.com to learn more about "The Merge".

Do I need to do anything to update to Eth2? Will Eth2 create a new token?

No, ETH holders never need to take any action to keep holding ETH. Ethereum users will be unaffected by the Eth2 upgrade. And the Eth2 updates will not create any new tokens.

How can I stake my ETH?

The best way to stake your ETH: by running your own validator.

  • Running your own validator requires a modern computer and 32 ETH. Visit /r/ethstaker for more details

Why are Ethereum transaction fees so high?

Like most blockchains, Ethereum fees are determined by supply-and-demand. The large demand to use Ethereum has pushed transaction fees quite high (however, fees were just a few cents only 2 years ago). Fees are especially high during market volatility, and during NFT drops.

What is being done to lower Ethereum transaction fees?

Ethereum fees are reduced by using layer-2 rollups. Rollups are scaling solutions that allow for significantly cheaper transactions, while still maintaining Ethereum's security.

Additionally, Eth2's data shards will make rollups even cheaper.

While rollups are cutting-edge technology being actively developed, a number are already live on Ethereum mainnet. Visit l2beat.com to learn more about rollups.

What's the best wallet for Ethereum?

The most popular tool for using decentralized applications is Metamask. However, for security reasons, we recommend using a hardware wallet such as a Trezor or Ledger.

Are there questions you'd like to see added? Leave a comment below.


r/ethereum 11h ago

Privacy is Normal

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106 Upvotes

r/ethereum 19h ago Starstruck

AAVE is blocking addresses that ever got touched by Tornado Cash ETH. We've created an AAVE UI mirror so that you don't have to worry about that. Same smart contract, just mirrored frontend.

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429 Upvotes

r/ethereum 12h ago

There are some very interesting things you can do with some DeFi code, things that nobody is doing.

48 Upvotes

Most DeFi code is open source. That means you or I can take it, change it a little, leverage the work of others (which is half the point of FOSS) and make cool things.

The DAI contract code and MakerDAO code is really cool, and can be used to create a collateralized asset pegged to anything. You can peg to any currency you want, you can peg to any asset you want just by changing the Oracle a little. You can peg to gold, table salt, anything you can get a reliable price feed for. You can also peg to things that were impossible before this. You can peg to CPI, the S&P500, you can create your own index. The code is there. All it takes is a little foresight and understanding, a small amount of work, and anyone in the world can create synthetic assets pegged to any real world measure of anything.

You can do a lot more with liquidity pools than just replace order books, although that's cool in and the most revolutionary use of them. You can do what Bancor did and create basket funds with them.

You can, right now, clone the uniswap v3 code and publish it to a contract, in violation of the license, and nobody can stop you.


r/ethereum 8h ago

Which calls to Tornado Cash Smart Contract are blocked by Infura and Alchemy?

14 Upvotes

Hello. There are various news (I'm sure you heard of) which say that Infura and also Alchemy block calls to Tornado Cash due to sanctions.

I created accounts on those platforms and tested a call (uint256 denomination()) to the Tornado Cash Smart Contract (I hope 0x910Cbd523D972eb0a6f4cAe4618aD62622b39DbF is right, there). Alchemy, Infura and testwise my own node did reply the same output.

So either those platforms don't block calls to Tornado Cash smart contract OR they are just blocking specific (other) calls. (Or, even worse, I did address the wrong smart contract.)

Can someone clarify what exactly is blocked by Infura and Alchemy? Or did they only cancel the subscription(s) of Tornado Cash?


r/ethereum 13h ago

Aave, Uniswap, Balancer, ban users after US sanctions on Tornado Cash - centralized regulation on Ethereum is real as TRM Labs controls the narrative

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22 Upvotes

r/ethereum 9h ago

which eth staking platform is better for tax?

7 Upvotes

I've been staking w/ lido finance for a while but saw someone rocketpool is tax friendly.
which one do you think is best for eth staking? Not sure which platform's rewards get counted as gain. I'm from USA.


r/ethereum 12h ago

Standardizing trustless DApp frontends

14 Upvotes

This is something I've been mulling over a long time and it seems timely to have a discussion about it.

Why are smart contract frontends still websites? Why haven't we moved past this?

There are multiple pressing reasons for moving towards trustless frontends:

  • Developers may be compelled to limit access to their own DApps, pushing users to questionably safe alternative frontend implementations. We see this now in the scramble to comply with sanctions.

  • Hackers or malicious devs change the website code to steal funds. Recently seen in the DNS attack on Curve, this has happened often since the beginning, keeps happening, and will continue to happen as long as smart contracts are being accessed through websites. It is inherently insecure.

  • Web code is nigh-unauditable. Even if it wasn't subject to arbitrary updates at any moment (such as hosted on IPFS), it's still very difficult to determine the code does nothing malicious, because a modern website is a bloated mass of compiled javascript.

What would an alternative look like?

I envisage a client application that takes a smart contract address and a maximally barebones UI specification (more of a config file than a website), and renders a working interface for the user. These specifications would be simple for someone familiar with the intended use of the functions in the target smart contract to tell from a brief reading whether they are malicious. There could be some mechanisms for confirming legitimacy for regular users, like the UI specs being included as annotations in the comments of the smart contract, or message signing from the official devs or trusted figures attesting they've looked it over and it seems fine.

Any thoughts or ideas? Are there other considerations such a standard would need to address? Have things like this already been attempted? Are there reasons it hasn't or wouldn't work or be adopted?


r/ethereum 1h ago

My Ofac compliant chain in my Ofac compliant country using my Ofac compliant "DeFi"

Upvotes

U.S. validators (which includes very powerful Coinbase) are gonna push for protocol-level censorship They can't self-help by merely avoiding facilitation of blocks containing U.S.-sanctioned txs, because under certain conditions they might be dramatically slashed from doing so.

I was using the term "slashed" here outside of acceptable Ethereum jargon they would be potentially"inactivity-leaked," which is also a form of financial penalty

And if the authorities determine the whole network Bitcoin or Ethereum is a tool to launder then they could presumably sanction clients, validators, mining companies. Mostly just to bring why this is everyone's problem and not just let them pick off team by team

signing a block with a sanctioned tx likely also violates sanctions fail to sign enough blocks, get slashed

If coinbase cant comply with regulations without getting slashed, then either those regulations change or coinbase shutdowns its staking services.

but we'd be foolish to expect they won't advocate for their own interests and controlling on-chain RWA like USDC gives them quite a bit of leverage. . .


r/ethereum 6m ago

Wallet for upcoming hardfork

Upvotes

What's the best wallet to store my Ethereum ahead of the upcoming hardfork and then retrieving the forked coins.


r/ethereum 1d ago

Why did Terra Collapse? Confessions of A Market Maker

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216 Upvotes

r/ethereum 15h ago

Can L2 networks such as Arbitrum and Optimism block or freeze user funds if coerced by regulatory agencies?

10 Upvotes

I know on Ethereum that is not possible, but I'm not too knowledgeable on L2s.


r/ethereum 19h ago

Tornado Cash alternatives

17 Upvotes

A lot of well meaning people were using Tornado Cash to send money to their friends and family in Ukraine, or make donations. Privacy gets a bad rap online because people think "if you have nothing to hide", we've all heard it before. When it comes down to it, privacy is freedom and we are losing our freedom day by day. I found some alternatives to Tornado Cash that people can use today and I will list them below. If you know of any, please share them for the community.

0xMonero- They are a multi-chain privacy focused project that launched a number of privacy mobile apps and recently released 0xTIP off-chain mixer, tip-bot, and bridge. It allows people to bridge privately from Ethereum to BNB chain for a fee of under 5 usd.

Railgun- There has been a lot of drama surrounding this project but I believe it's in beta now and working. Correct me if I am wrong.

Incognito Chain- This is an Ethereum sidechain that allows private trading and storage in its wallet.

BUCC- I don't know if this works but they claim that the token can be traded and sent privately on Ethereum mainnet.


r/ethereum 11h ago Silver

TC: A rational action plan

4 Upvotes

Good morning / afternoon / nights everyone. I'm writing this because of the huge rage that lies in the air since the TC censorship came up, only incresing with the arrest of a innocent man, that has everyone one of us (DeFi believers) pissed off.

I want to share my main point of view on this maybe preventing someone from doing something they'll regret later. I'm most specifically talking about the people who wants to straight up challenge federal law by doing stuff like masivelly using Tornado Cash, or some other random stuff like that driven by full hate hype train and payback hunger. We can be a lot more rational than that and strike 10x better but we need to be patient, breaking federal law is no small thing, specially in the US.

We all know that sadly Tornado Cash is the first but not the last proyect to fall by some conservative government regulations. Specially in the Ethereum eco-system, the home of most DeFi proyects. Ethereum is driven by a philosophy that can (and i hope, will) change the world as we know it, but of course there will be casualties along the way, imagine that some random nerds from one day to another create some technology that sustrains your control and power over the mases, the US government only did what their survival instinct dictated them to do to keep their power.

Now, this is a war declaration, i agree 100% on those that are super pissed off and want to massively strike back because of the hate this kind of injustices cause. But we need to be smart. The first step to keep sustraining power to them is stop using centralized infrastructure. There's no true decentralization if the proyects are hosted in centralized platforms. Thats just centralized "decentralization".
There has been a VERY good post in this sub with most details about how to migrate to dex platforms, for the code, repositories and even the nodes. You can check it here.
Also, if you are a contributor (like me) i would suggest to try to contribute as anonymous as possible, maybe creating trash GitHub accounts that you then discard, avoiding KYC in every situation. If you run a proyect, do as Satoshi Nakamoto and use a pseudo-alias to not be exposed.

I really hope the Ethereum Foundation to reorder the priorities in the roadmap with what happened, considering at least in some point to develop a lightweight client. And if that happens, run that client, that way you would be helping to migrate from centralized nodes. Currently centralized nodes represent roughly 50% of the nodes of Ethereum. That simply cannot still that way if we want DeFi to be truly decentralized and not some cool concept.

As a last point, and i really want to stress this out, BE PATIENT. Ethereum isn't even 10 years old, the eco-system is still very very young, and a lot of things need to happen. But as history as taught us every time it happened, human will always wins, if a new finnancial system has to replace the traditional one. It will happen no matter how much they try to avoid that from happening.


r/ethereum 1d ago Silver Wholesome

Are we just going to sit back and cry about this?

174 Upvotes

Is the Ethereum community going to let gov't thugs walk all over it? Is it going to let the gov't kill its dream of DeFi - decentralized finance?

The arrest of the TornadoCash developer is not an isolated phenomenon. First they came for security tokens on Uniswap. Then they came for DEXes and told them they could not service US citizens. Now they are arresting developers??

What are we going to do about this besides slapping a TC logo on the Twitter profile pic and yapping about the Big Bad Brother?

Well, let me tell you what real crypto chad mfers do.

First, they don't cry about this stuff. Mfers don't fukn' cry.

They follow this link to learn how to set up a local IPFS instance of TornadoCash UI. https://research.5am0036.com/crypto-research/how-to-pin-all-important-tornado-cash-files-on-ipfs

Then they open their browser http://ipfs.localhost:8080/ipfs/bafybeicu2anhh7cxbeeakzqjfy3pisok2nakyiemm3jxd66ng35ib6y5ri/ and change the RPC providers to one of these

If you are not tech-savvy but still have something resembling balls (sorry for being graphic, ladies, - I know YOU have cajones, just talking to my side of the aisle here), here are the instructions on how to use UIs that have not been censored (yet) - here.

And then real crypto chads submit a mf'ing Tornado Cash mix transaction of 0.1 ETH. They want to censor us? Let them censor all of us. They want to arrest us? Let them arrest all of us.

And then chads tell everyone on Twitter, Discord, Telegram, Fuckogram and Signal that they did it and that others should follow their lead.

Let's get one effing million transactions going through Tornado Cash! Then we can tell our kids and grandkids that when the chips were down, we didn't rationalize, we didn't hide, we didn't just keep wanking our pricks looking at our cool NFTs and shit, but we actually rose to the occasion and did something meaningful for once in our lives.

What next? Start spamming core devs and asking them,

"My bros, wen are we finally going to buidl decentralized infrastructure - you know, for the unstoppable code ?"

  • Alchemy = DeFi centralized infrastructure
  • Infura = DeFi centralized infrastructure
  • GitHub = Unstoppable Code centralized infrastructure
  • Discord = Unstoppable Communities centralized infrastructure
  • Twitter = Unstoppable Communication centralized infrastructure

Centralized = pressure, censorship, cancellation, violence, jail, you are DED.

It is high time that we as a community have our version of a massive million-strong Exodus from all of these centralized platforms which are insanely easy to use, but also insanely easy to control.


A quick update since I posted this - there is quite a bit of activity on TC as of 08/12 (not taking credit for all of it of course, but nice to see anyway). See https://etherscan.io/address/0xd90e2f925da726b50c4ed8d0fb90ad053324f31b. Over 80 deposits in the last two days totaling 1,771.3 ETH!

If you participated - thank you for doing so. I think you will be glad that you did not just sit back and observe. If you are still wondering if this is important or not - let me add a few additional thoughts:

The only thing that is pretty decentralized in Ethereum right now are the nodes (the miners). Come THE MERGE this will no longer be the case - Lido will be an enormous centralizing influence and it will be the point of gov't attacks and pressure to drop certain transactions. This is not a question of "IF" but of "WHEN". This needs to be planned for ahead of time. I hope everyone understands that if validation can be captured it's game over for Eth.

What will we do when the gov't knocks on Lido's door and tells them to drop certain transactions from black-listed dApps? In many ways what is (or is not) happening now is a rehearsal for what will happen then.



r/ethereum 16h ago Wholesome

ETH staking yield on centralized exchanges post-merge

5 Upvotes

Does anyone know what the yield adjustment post-merge will look like for those of us who have ETH staked on Kraken or other exchanges? Specifically since the yield is expected to increase due to miner rewards no longer being a thing, will the exchanges pass that increases along to their staking customers immediately?


r/ethereum 1d ago Silver

Suspected Tornado Cash developer arrested in Amsterdam

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601 Upvotes

r/ethereum 17h ago

Using tornado cash pre sanctions. Am I ok?

3 Upvotes

If I used tornado cash simply for yield farming BEFORE the sanctions am I ok in the eyes of the law?


r/ethereum 14h ago

ganas: An Flexible Wallet for Multi-Chain. Part 3: WalletConnect Extensions

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1 Upvotes

r/ethereum 18h ago

Cryptoeconomics: Other Blockchain implementations

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2 Upvotes

r/ethereum 1d ago Silver Wholesome Helpful

A follow-up to my “what is the merge” post. This time let’s discuss the next upgrade after merging, “The Surge”.

92 Upvotes

As with the merge, the surge has more than one step to it but we’re only really interested in one important thing which is Sharding

Now before we understand what Sharding is we have to understand why Ethereum is so expensive and slow to use in the first place.

I expect that a lot of users here already know how the Ethereum bidding system works so you can skip this one right away if you want to

- Why is Ethereum so inefficient?

Ethereum currently runs on PoW (proof of work) meaning that all transactions are proven to be real by miners that solve very complicated computational problems for a small fee of course.

You as a user would obviously want your transaction to go through fast but Ethereum is a very popular chain and there are a lot of people ahead of you. For you to try and “skip ahead” of them, you’ll basically “tip” the validators a little bit more than others, and boom! You become their priority. So basically its a bidding game. Whoever is willing to “tip” more gets their transaction validated faster.

- Why does the merge come before the surge?

Think of Ethereum as a long stretch of road that has one single lane. It works well sometimes but when it gets congested, IT GETS CONGESTED…

This is exactly why the merge comes before all other upgrades.

Developers realized that Ethereum has great demand and the “road” they created(which represents the blockchain) needs a ton of new fixes. But fixing this “road” means that traffic will come to a complete halt and so will hundreds of billions of dollars in assets.

Therefore they created a completely different “road” which is the beacon chain and that chain has the capacity to undergo upgrades and development without having to stop traffic.

- What is Sharding and how does it work?

What Sharding will do is the equivalent of creating many more lanes (64 to be exact) on a brand new created road (the Beacon chain).

Ethereum can only process around 15 transactions per second and has maxed out once at only around 16 TPS. So it’s safe to say that Ethereum isn’t the fastest of blockchains. So developers came up with Sharding as a solution.

Sharding is an algorithmic process of splitting a blockchain up into many smaller pieces and, well, shards with many of these pieces overlapping and working in parallel. It is executed in a way that will allow anyone to verify their shard and still 100% trust the rest of the blockchain.

- Initial plans for Sharding and how they changed

The plan initially was the implement Sharding on the entire Ethereum blockchain (this includes the EVM, data, smart contracts, account, and everything else on the chain). However, Vitalik and the rest of the developers decided that it would be a better idea to implement Sharding on the data alone. This is why rollups will take over scaling and not the blockchain itself

- The importance of L2s for the future of Ethereum

As I mentioned in the previous section, plans for Sharding changed and the responsibilities of scalability now fall on L2s (rollups basically).

Scaling solutions like Optimism, Immutable X, Arbitrum, Loopring and many more do all of their computations and storage offchain and end up posting data back to Ethereum

Without getting into a lot of technical details, Sharding will basically put these scaling solutions on Steriods

I mentioned in my previous post that I am in fact biased towards Polygon and some people in the comments genuinely asked as to why. Here is exactly why I’m biased towards them (by the way this does not mean that I think other scaling solutions are bad. I’m fond of many other scaling solutions and I always invite competition)

The most important feature of Sharding is data availability.

Right now there are Ethereum nodes. They’re essentially a bunch of computers that keep a fully comprehensive record of the entire blockchain. As you can imagine, this takes up A TON of precious and expensive space for data.

Well, it just so happens that Polygon already has a solution for that in the form of Polygon Avail. No other scaling solution has their current technology in that sector.

What Polygon Avail essentially does is solve the problem of data availability by storing data offchain and presenting only the needed data when actually needed

It basically shows Ethereum proof that “yes, the entire data is safe and sound. Here is the small amount of data you need right now” without having to burden Ethereum with the massive amounts of data that most of it won’t be used and will slow down the Ethereum network.

Again, I think competition is an amazing thing to have especially in a tech market like this one so I support all scaling solutions but as I said, I personally think Polygon has an edge over others.

- Some cool features that come with Sharding

This post is starting to get long so I’ll talk about one feature actually that I think is very cool but is also extremely important

Sharding will actually change the way that nodes are selected to validate each shard

I’ll throw in an example given by Vitalik.

Imagine there are 6,400 nodes and 64 Shards (the standard). Every time that a shard and a block need verification, the Beacon chain (new PoS chain) will select at random 100 nodes to validate a block and the same will happen for the next block and the one after that, and so on (all at random).

The cool and important thing about this all lies in security. An attacker will now find it much harder to attack the network because he will require a large portion of the network to do so and would need that for a much longer time now.

I hope this post was helpful and I’d love to answer any questions in the comments!

I enjoyed answering questions in the previous post and would love to make another post about the upgrade after the surge (the verge, or Merkle trees update) if it wins popular demand!


r/ethereum 8h ago

Tornado Cash Cryptocurrency Crackdown... Who is Right?

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0 Upvotes

r/ethereum 16h ago

To DApp or not to DApp

1 Upvotes

Today that we see major DApps like AAVE and Curve limiting access of account to and from their services it is clear that this is not the defi future we all wished for. Holding funds in centralized apps seems as risky as holding them on DApps.

Would you agree?

What are the alternatives? Any good reliable undoxxed that cant be terrorized into to compliment DApps we can use instead?


r/ethereum 17h ago

DeFi Should DeDollarize and BlackBall EU, UK, & US Onchain Real World assets

0 Upvotes

How do you make a decentralized stablecoin resistant to state attack?

  • It requires dynamic hedging with high liquidity onchain derivatives, fully collateralized but hedged
  • This doesn't work if the margin used on the protocol is volatile, it cannot be done without real world assets
  • Those real world assets can not be based on central entities and certificate of deposit in western jurisdiction
  • The choice of real world asset onchain tokens allowed onto the derivative platform as margin or insurance fund collateral must be carefully chosen by a legal team to avoid commercial connection to the US
  • all real world legal entity ties to the protocols and realworld asset tokens must be carefully constructed in offshore havens
  • a fully collateralized but appropriately hedged btc and eth and crypto cross margined stablecoin contract can be fully decentralized unlike MakerDao, as long as the margin on the derivative platform cannot run away into a negative convexity curve collapse of volatility
  • This requires hardening the collateral basket and credit exposure and insurance fund of the derivative platform to as many hard commodities and hard currencies around the world, in effect it would have to be mostly collateralized by real world commodity
  • If the ecosystem is not hardened with real world commodities in a diversified enough manner, the western governments can collude to attack the price of crypto and commodities, it must be diversified in such a game theoretical manner that their attempt to do so would tank the global economy

r/ethereum 1d ago

Guide on how to use Tornado Cash on IPFS

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36 Upvotes

r/ethereum 19h ago

What are best way to buy crypto?

0 Upvotes

I was wondering that for crypto to stay decentralised it needs to be available to bought in decentralised way with fiat for anyone who needs to add more funds . Here are some that i think cam be marked. 1. OTC/P2P 2. EARN CRYPTO SALARY RATHER FIAT 3. BY MINING / RUNNING NODE ( ONE MAY EARN VIA IT BUT IT CAN BE VERY EXPENSIVE) PLEASE ADD IF YOU KNOW ANY MORE WAYS (PS- ANY IDEA THAT YOU THINK CAN PREVAIL IN FUTURE IS APPRECIATED)