The Ethereum Narrative.

The Etherrum community has moved away from the idea that Proof of Stake and various brilliant ideas like sharding and the parallel processing of smaller segments of blocks based on geography would rescue Ethereum from its current fate. A fate that many recognize, but until now many were unwilling to accept.

Ethereum has more transactional volume then it’s blockchain architecture can properly process in a reasonable amount of time and at a reasonable price.

The solutions to this problem were elegant and pretty, but doomed to failure at the start.

But now that the Ethereum Community has come to grips with the failure of the Proof of Stake solution, the narrative has moved onto a more mathematically sound solution which is revolutionary.

But to truly appreciate the beauty of the real solution, it’s helpful to exam why the initial proposed so,Union of Proof of Stake wouldn’t work as implemented.

The problem: Ethereum blockchain is to slow to keep up with it’s current on peak demand.

There are to many transactions to be recorded on the blocks of the the blockchain, and as work load increases work is prioritized according to who will pay the most to get their transactions done the fastest.
-Thus the law of supply and demand raises prices.
No surprises here.

The solutions: Proof of Stake and Sharding.

These produced;

arithmetic increases to transactional capacity.
Proof of Stake, as planned by Ethereum and sharding increases capacity arithmetically:
These Ethereum scaling solutions were going to increase its capacity first by 4, then by 8 and then by 64, and maybe at some point 128 times faster.
the promise of going from 4x to 16x to 64x and maybe 128x is amazing.

The problem

DeFi Total Volume Locked on the Ethereum went from 10 million to 10 billion in one year. That’s a 1000x, and that’s referred to as an exponential progression.
Simply put arithmetic progressions result from multiplying a number less then 9 by itself, as in 2x2= 4, 4x4=8, 8x8 = 64.
Or repeatedly by another number less then nine, as in 2x3=6, 6x3=18, 18x3=54.
Exponential progressions result from multiplying numbers by 10, 100 or 1000.
Like 10x10=100, 100x10=10,000
or 10x10=100, 10x100=1000, 10x10,000= 100,000.
As you can see arithmetic progressions grow fast, but not as fast as exponential progressions.
So to clarify, the problem Ethereum was exponential, as in Ethereum transactional volume was increases by factors of 10, 100 or 1000. But the solution was arithmetic, increasing Ethereum transaction volume by multiplying by numbers of 9 or less, like 4, to produce 4x1=4, 4x4=16, 4x16=64.
I think it’s clear here that the solution was doomed to failure from the beginning.

So why all the emphasis on arithmetic solutions?

… when it’s obvious that a brilliant mind like Vitalic Buterin knew this from the beginning and that brings us to the real solution.

It appears to me that Proof of Stake solutions were just buying time until the real solunions were developed.
Plus Proof of Stake is useful to deal with the ecological narrative of environmental issues of Proof of Work consuming so much energy. But here I speculate.

The solutions to Ethereum Problem

Side Chains, Z-K Roll-ups, and other very elegant solutions which could provide exponential increases in transactional volume.
once again the math is clear.
‘If you could figure out how to move the transactions off Ethereum, to another blockchain which has 10x or 100x or 1000x or 10,000x the transactional volume of Ethereum …
And you could figure out how to provide ultimate settlement on Ethereum so that these investors and their transactions were protected by the legendary security of Ethereum you would have a solution.
10x, 100x and 1000x look a lot like exponential progressions to me.!
Yes each side chain offers exponential increases to transactional volume, and
the increases in exponential capacity provided by multiple new high capacity blockchains means the solution is faster then the problem, and will stay that way, because you can just keep adding sidechains.

This is the change in the Ethereum Community Narrative in parts

Proof if Stake is not the solution and never was in fact.
Multiple sidechains with infinite ability to add additional faster blockchains produce exponential increases in transactional capacity.

But another important narrative change

-Ethereum won’t be for humans anymore
-It will be the land of Bots and possibly large Ether Whales
-The Bots will be there for final settlement only of batched transactions
-The whales will be there because the size of their transactions demand the transactional security of Ethereum

Mere non-whale humans will operate on cheaper, faster and slightly less secure sidechains like Polygon or others.

Summary

That is my opinion on the changing Narrative on the Ethereum Community. What do you think?

@shortsegments

The Ethereum scaling and side chain narrative has changed significantly and it’s revolutionary.