The impact of congestion in Ethereum

1. Some institutions have predicted that ethereum will rise to $2500 by the end of the year, but it seems unlikely in the current market. Domain Kingdom's latest Ethereum price is $166, down 16% from yesterday
although the price of Ethereum continues to decline, there are still many investment opportunities. Nowadays, many people invest in Ethereum through virtual currency trading in the realm Kingdom, which is not affected by the rise and fall of prices, but also can invest less money in the shortest time to obtain more income.

2.

There is an essential difference between Ethereum and bitcoin. What is the difference? Bitcoin defines a set of currency system, while Ethereum focuses on building a main chain (which can be understood as a road) to allow a large number of blockchain applications to run on this road

from this point of view, Ethereum's application scenarios are more extensive, which is why we say that Ethereum marks a simple monetary system in the era of blockchain

1.0, and a transformation to other instries and application scenarios in the era of blockchain 2.0

however, there is no perfect thing in the world. Although Ethereum has expanded the application scope of blockchain in all walks of life and improved the speed of transaction processing, it also has some disputes and doubts

first, the solution to the lack of scalability of Ethereum: slicing technology and lightning network

the bottom design of Ethereum, the biggest problem is that Ethereum has only one chain and no side chain, which means that all programs have to run on this chain equally, consuming resources and causing system congestion. Just like last year's very popular Ethereum game "encryption cat", when this game was very popular, it once caused Ethereum network paralysis

to improve the processing capacity, Ethereum proposes two ways: shard and lightning network. Let's introce these two technologies respectively

(1) fragmentation technology

vitalik buterin, founder of Ethereum, believes that the reason why mainstream blockchain networks such as bitcoin process transactions very slowly is that every miner has to process every transaction in the whole network, which is actually very inefficient. The idea of fragmentation technology is: a transaction does not need to be processed by all nodes in the whole network, as long as some nodes (miners) in the network are allowed to process it. Therefore, Ethereum network is divided into many pieces. At the same time, each piece can handle different transactions. In this way, the network performance will be greatly improved

however, the slicing technology is also controversial. As we all know, the important idea of blockchain technology is decentralization. Only when the whole network witnesses (processes) the same transaction can it have the highest authority. The Ethereum slicing technology is similar to the group witness, not all nodes witness together. In this way, it will lose the absolute "decentralization" attribute, and can only achieve the purpose of high performance by sacrificing certain characteristics of decentralization

(2) lightning network

lightning network uses the way of transaction under the chain. What does that mean? It means: when the participants of lightning network transfer money to each other, they do not need to confirm the transaction through the main chain of Ethereum, but create a payment channel between the participants and complete it under the chain

however, lightning network is not separated from the main chain. Before establishing a payment channel, you need to use the assets on the main chain as collateral to generate a balance proof, which indicates that you can transfer the corresponding balance. In the case that both parties of the transaction hold the balance certificate, both parties can make unlimited number of transfers under the chain through the payment channel

only when the off chain transaction is completed and the assets need to be transferred back to the chain, the balance change information of the main chain account will be registered on the Ethereum main chain, and no matter how many transactions occur ring this period, there will be no record on the main chain

another real benefit of lightning network is that it can save the cost of miners for you. At present, when we trade on the main chain of Ethereum, we need to consume gas and pay for miners. Once we move the transaction to the lower chain, we can save this part of the cost

Of course, lightning network is not perfect. When using the lightning network, the assets on the main chain should be used as collateral; And this part of assets as collateral can not be used before the user completes the transaction under the chain. This also determines that lightning trading is only suitable for small transactions

the above is the problem of insufficient scalability of Ethereum, as well as the two main solutions: fragmentation technology and lightning network

Second, there are loopholes in Ethereum's smart contract and the infamous Dao event

Ethereum's smart contract is very powerful, but there are loopholes in any code. The biggest controversy of Ethereum's smart contract lies in the so-called loopholes, that is, security issues. According to relevant research, 34200 (about 3%) of the nearly 1 million smart contracts based on Ethereum contain security vulnerabilities, which will allow hackers to steal eth, freeze assets or delete contracts, such as the infamous Dao incident

(1) what does Dao mean

before introcing the Dao event, let's first introce what Dao is. Dao is the abbreviation of decentralized

autonomous organization, which can be understood as decentralized autonomous organization. From the perspective of Ethereum, Dao is a kind of contract or a combination of contracts on the blockchain, which is used to replace the government's review and complex intermediate proceres, so as to achieve an efficient and decentralized trust system. Therefore, Dao is not a specific organization, that is to say, there can be many Dao, all kinds of Dao

(2) the infamous Dao event

however, when we talk about Dao now, we basically refer to the Dao event, that is, the infamous hacker attack event we just mentioned. As we know, the English word "the" refers to "the Dao event". The Dao event

refers to "the Dao event", because we just said that Dao is not a specific organization, there can be many Dao, all kinds of Dao

in 2016, slock.it, a German company focusing on "smart locks", launched the Dao project on Ethereum in order to realize decentralized physical exchange (such as apartments and ships). Since April 30, 2016, the financing window has been open for 28 days

unexpectedly, this Dao project is very popular. It raised more than US $100 million in just half a month. By the end of the whole financing period, it raised a total of US $150 million. Therefore, it has become the largest crowdfunding project in history. However, it didn't last long. In June, hackers took advantage of the loopholes in the smart contract to successfully transfer more than 3.6 million Ethernet coins and put them into a Dao sub organization, which has the same structure as the Dao. At that time, the price of Ethernet currency fell directly from more than $20 to less than $13

this event shows that there are loopholes in smart contracts, and once the loopholes are exploited by hackers, the consequences will be very serious. This is why many people criticize Ethereum and say that its smart contract is not smart

to solve this problem, many foreign companies begin to provide code audit services in order to solve the vulnerability problem of smart contract. From a technical point of view, some teams are currently testing smart contracts. Most of these teams are led by professors from Harvard, Stanford and Yale, and some of them have obtained investment from leading institutions

in addition to the problems of insufficient expansibility and loopholes in smart contracts, the controversy over Ethereum lies in the POS consensus mechanism it pursues, that is, the proof of equity mechanism. Under the proof of equity mechanism, if anyone holds more money and holds it for a longer time, he will get more "rights" (interests) and have the opportunity to get bookkeeping power, Bookkeeping can also be rewarded. In this way, it is easy to create the oligarchic advantage of "the stronger the stronger"

Another problem is the chaos of ICO. ICO is a common way to raise funds for blockchain projects, which we can understand as pre-sale. The outbreak of ICO projects on Ethereum has caused illegal activities such as fund allocation and money fraud under the banner of ICO, which has caused security risks to social and financial stability

3. In fact, the rise and fall of digital currency is a normal situation. The key is to see whether you are optimistic about its long-term value. Relatively speaking, if the long-term value is worth investing in, then the short-term decline can be ignored. At the same time, if you don't know much about digital currency users, it is recommended to choose a reliable and good platform for investment. The investment period needs more than six years, Word of mouth should always be good, you can take a look at AEX, fire coin these two, but also more reliable, you can also understand their own network first

4. 2020 is the first year of proction rection. Everyone turns to BTC, BCH, BSV and other currencies. However, you forget eth. As the king of the public chain, ETH will usher in the big upgrade of 2.0 super version in 2020, switching from the pow mechanism to the POS mechanism. In addition, it will face proction rection in March next year, and its circulation will be reced by 10 times. Its impact is no less than that of bitcoin proction. Since the beginning of the year, the trading volume of eth has grown explosively, and the institutional capital has poured in to preempt the layout. However, the current price of eth is only 260 US dollars. With many super favorable blessings, the market expects eth to usher in a super bull market< In theory, the circulation of next year will be reced by 10 times. In theory, the current price of eth is 260x4 = US $1040 (upgrade + expected price after proction rection)

ring this period, the return comparison between holding spot and ETF fund is as follows:

1. Holding spot makes 4 times of profit
2. Holding Ethereum ETF fund makes 12 times of profit, Up to 30 times (intelligent position adjustment + fund compound interest calculation)

there is no doubt that the Ethereum ETF launched by bitoffer is the best investment choice!

5.

The price of Eth and other virtual currencies is determined by the following aspects: 1. Frequency of use; 2. Actual use; 3. Number of participants

as for how much room to go up, the current price of Ethereum is about 6600. Recently, e to the frequent use of Ethereum private placement, Ethereum has risen to more than 10000. Ethereum is a smart contract, and there are countless tokens developed based on Ethereum. Therefore, as the underlying public chain of smart contract, its prospect changes with the popularity of blockchain, However, some time ago, the disadvantages of Ethereum were exposed. The main chain was congested and the handling fees were extremely expensive. The development of Ethereum was close to the bottleneck. Therefore, the room for its growth was whether the developers could improve the main chain environment according to the disadvantages. As for the number of participants, it was not a big problem now. Pay more attention to the current development progress of the developers and focus on doing things, There is a bright future ahead

at present, the websites that can trade Ethereum include: btctrade international station, Huo coin, coin an, etc.

6. After detailed calculation by the wikilink team, at present, the transaction confirmation speed of wikilink can reach 1000 + TPS, far faster than that of Ethereum. At the same time, wikilink will adopt the side chain architecture, each application will have its own independent side chain, and the application data will be independent of each other. The side chain will register its hash on the main chain every other period of time, so as to ensure the side chain from rollback attack.

7. Ethereum can be said to be a very successful currency in technology. In a short period of time, it has formed a trend of convergence. No matter in the technical level or in the market level, it has received global support, and the applications developed around it are emerging in an endless stream. At present, its price has been hovering at 3000 yuan for nearly half a month. I believe that with the progress of the bifurcation, its price is likely to exceed 4000 yuan by the end of the year. As the second largest market value of blockchain projects and bitcoin projects, its value is obviously likely to rise

Ethereum uses fog computing. The data processing and applications of fog computing are concentrated in the devices at the edge of the network, rather than almost all stored in the cloud, which is an extension concept of cloud computing, which is more in line with the spirit of decentralization of blockchain. If all the storage and operations still stay on the centralized server, then it will not be a real blockchain
recently, the hot "ethereal cat" on Ethereum network has led to the congestion of Ethereum network. The problem is that the TPS concurrency per second of Ethereum is too low. The emergence of ethereumfog with fog computing will break the embarrassing situation of Ethereum network congestion, and add powerful decentralized storage and additional computing power to the chain.

8. Ethereum can be said to be a very successful currency in technology. In a short period of time, it has formed a trend of convergence. No matter in the technical level or in the market level, it has received global support, and the applications developed around it are emerging in an endless stream. At present, its price has been hovering at 3000 yuan for nearly half a month. I believe that with the progress of the bifurcation, its price is likely to exceed 4000 yuan by the end of the year. As the second largest market value of blockchain projects and bitcoin projects, its value is obviously likely to rise

Ethereum uses fog computing. The data processing and applications of fog computing are concentrated in the devices at the edge of the network, rather than almost all stored in the cloud, which is an extension concept of cloud computing, which is more in line with the spirit of decentralization of blockchain. If all the storage and operations still stay on the centralized server, then it will not be a real blockchain
recently, the hot "ethereal cat" on Ethereum network has led to the congestion of Ethereum network. The problem is that the TPS concurrency per second of Ethereum is too low. The emergence of ethereumfog with fog computing will break the embarrassing situation of Ethereum network congestion, and add powerful decentralized storage and additional computing power to the chain

the concept of fog computing may be unfamiliar to many chain friends, but it is the most important aspect of ether fog to attract investors. In fact, I have heard about the concept of fog computing for a long time, and I have always thought that fog computing is the future development direction. When it comes to fog computing, we should start with cloud computing. In fact, the cloud computing we see now evolves from the cluster of independent servers, that is, from the original centralized independent servers to large server clusters, but in the final analysis, it is still a form of centralized computing. Compared with cloud computing, which is the evolution of centralized computing, fog computing is to share computing tasks with various computing power devices around us, and realize the evolution of decentralized and distributed computing, which coincides with the philosophy of blockchain itself.

9. It's better not to exceed 1100 cores. In fact, 1050 cores are just a little bit more than 1100 cores
because even if we go up, the improvement will not be obvious. The card game is still the card
don't over store the video memory
the core performance of 370 is only average at present
bandwidth is not the bottleneck< In fact, surpassing is just psychological comfort
running points
slightly higher

10.

When Ethereum broke through the $3000 mark, the bitcoin market caused these impacts:

1. Ethereum broke through and rose $3000, bitcoin and other virtual currencies received more and more attention:

2. Bitcoin and Ethereum are both virtual currencies, and they have linkage effect

3

emerging instries will encounter difficulties in the development process. After these difficulties are solved, new cognition will be formed, which will break everyone's cognition and be accepted by everyone. Bitcoin is like this, from doubt to recognition and then to acceptance. Ethereum broke through the $3000 mark, which had a significant impact on the bitcoin market. The virtual currency has formed a plate effect from bitcoin to dogcoin, and now Ethereum. This shows that the virtual currency is getting more and more attention. There is a strong linkage between virtual currencies. The rise of Ethereum may also stimulate the rise of bitcoin, Finally, the valuation of virtual currency may be greatly improved, which is actually very beneficial to the whole virtual currency

there is a lot of controversy about virtual currency now, because no one can control the decentralization, and basically no country recognizes their value, but this has not affected the rise of Ethereum based virtual currency, which is actually the problem of pattern and cognition. For ordinary investors, I do not recommend to participate in virtual currency, which is too risky to grasp< br />