Buterin is going to burn ETH coins

Creator of Ethereum wonders about the idea of imposing fees on apps built atop ethereum so they can burn ETH tokens over time
09 November 2017   4101

Creator of Ethereum Vitalik Buterin thought about how to limit the emission of this cryptocurrency. Among the proposals is to withdraw some of the coins from circulation by collecting a commission for applications on the Ethereum blockchain. This is reported by Bloomberg.

According to the publication, this thought was prompted by Buterin's observation of the appearance of new cryptocurrencies, which since the beginning of 2017 attracted about $ 3 billion during the initial coin offering(ICO).

At the same time, Vitalik Buterin does not consider the option of limiting the emission of Ethereum by analogy with bitcoin. Instead, he suggests charging commissions for applications built on Ethereum. According to his calculations, eventually these commissions will withdraw from circulation a part of the tokens.

If the token is being burned, then you have an economic model that says the value of the token is the net present value of basically all future burnings. It’s just a currency that goes up and down. It feels kind of like voodoo economics and the price of the token isn’t really backed by anything. That’s a very spooky thing.

Vitalik Buterin
Co-founder, Ethereum

He also added that his team will continue to look for ways of irreversible destruction of Ethereum tokens.

Potentional Vulnerabilities Found in ETH 2.0

Least Authority have found potentional security issues in the network P2P interaction and block proposal system
26 March 2020   964

Technology security firm Least Authority, at the request of the Ethereum Foundation, conducted an audit of the Ethereum 2.0 specifications and identified several potential vulnerabilities at once.

Least Authority said that developers need to solve problems with vulnerabilities in the network layer of peer-to-peer (P2P) interaction, as well as in the block proposal system. At the same time, the auditor noted that the specifications are "very well thought out and competent."

However, at the moment there is no large ecosystem based on PoS and using sharding in the world, so it is impossible to accurately assess the prospects for system stability.
Also, information security experts emphasized that the specifications did not pay enough attention to the description of the P2P network level and the system of records about Ethereum nodes. Vulnerability risks are also observed in the block proposal system and the messaging system between nodes.

Experts said that in the blockchains running on PoS, the choice of a new block is simple and no one can predict who will get the new block. In PoS systems, it is the block proposal system that decides whose block will fall into the blockchain, and this leads to the risk of data leakage. To solve the problem, auditors suggested using the mechanism of "Single Secret Leader Election" (SSLE).

As for the peer-to-peer exchange system, there is a danger of spam. There is no centralized node in the system that would evaluate the actions of other nodes, so a “malicious" node can spam the entire network with various messages without any special punishment. The solution to this problem may be to use special protocols for exchanging messages between nodes.