Thread by @TrustlessState

+ Q&A on Ethereum 2.0 with Vitalik Buterin

Happening at @EtherealSummit in 20 minutes!

I'm going to Live-Tweet here once it starts!!

Q: what have you been up to lately?
V: Lots of things.

Spec finalization. Japanese formal verification team on Casper FFG.

Implementation team got all 7 teams to sync, wish I was there, but im here instead

Q: how do the implementation teams coordinate? Is it a mess or organized?

V: there's much more coordination than what meets the eye. Thanks to @dannyryan

Q: what's next for the implementation teams after the 7-team sync?

V: scaling the capacity to communicate within implementation teams and ensuring that phase 0 can scale to provide the needs of phase 1

Q: validators rewards. There are a few economic models, what's the deal with that?
V: the max reward is 1.7% if everyone is staking. If a smaller % is staking is 10% then the reward scales to 5%. 1% staking returns 17%. Plus fees. Therefore it will find an equilibrium.

Cont.

There will totally be enough security with 10M eth staking

Q: DApp and contract transfer to eth 2.0. How will that work?

We figured out an approach to preserving existing applications.

State root on eth1 side is transferred to eth 2 by a hard fork on the eth 2 side. Eth 2 allows for@interpreation of old eth 1 state.

Q: 2nd layer scaling solutions:

V: I think that l2 protocols with data on them womt be able to scale. L2 I advocate for is off-chain computation with on chain data commitments.

A halfway between l1 and l2 hybrid emerges that will satisfy needs.

Q: aside from Ethereum, what's your favorite blockchain?
V: zcash.

Also @cosmos. Done a good job building tendermint and getting people to use it

Q: surge of DAOs and Dao popularity ...
how do think DAOs will be relevant into the future, particular considering governance.

V: spiritually, I love DAOs. Coordination upon any set of real world features is cool. Alternatives to non-profits and corporatations is close to my ❤️

Cont.

Collusion and bribing issues are still unsolved. If you have votes or token votes, you can create a smart contract that offers financial rewards for voting a certain way. The entire Dao could change directions in a way not intended

Nice going @nanexcool

Cont. @MolochDAO's rage quit mechanism is great but it only solves half the problem. Need other more collusion resistant solutions.

Need ways to mask votes from both voters and bribers so voting commitments can't be proved.

Q: zk snark progress
V: lots of progress in the last few weeks that aren't recognized yet.

One single trusted setup needed and then no more, making it really easy for 1000s of people to participate.

Very minimal setup environments are huge.

Q: DeFi. Hot and trending topic. There's a lot of reliance on these protocols. How do you feel about that?

V: very excited about DeFi and it's capabilities. Very powerful. Financial services for everyone, especially for those who need a currency that doesnt bleed it's value.

Cont.

Q: problems: @compoundfinance has an increasingly large pool of funds. People are advertising equal or better performance.

V: it's irresponsible to advertise high rates from DeFi, there's a reason why fed reserve bonds offer 1.5%. It's tested.

Cont. These systems are new and untested and we should not be encouraging people to move their money here because they not safe.
Contract bugs etc.

MakerDAO and compound have been extensively audited and formally verified, but they're are failure points

Cont. Failure modes
1. backdoors.
2. Oracles.
Both systems subject you to liquidation.

Need multi-party Oracle schemes to maximally decentralized. Good progress is happening but we need more.

The price of not having another DAO hack is eternal vigilance.

Q: I know you played a lot of WoW. The game updated and your character traits were nerfed, and you never played wow again.

Blizzard just brought back WoW classic. Are you going to play WoW and put eth on the back burner for a bit?

V: yes maybe if WoW moves to Ethereum

FIN!