Decrypting ETH2.0, BiKi opens verification node mining across the entire network, making it easy to become one of the first miners of Ethereum 2.0

The following is a record of the live broadcast:

Host: Good evening, everyone in the community. Thank you for your support. I am the host of this AMA. Thank you for the invitation from BiKi.

ETH2.0 was launched some time ago. Today, Mr. Yue, head of the BiKi community, Mr. Pan Shipan, founder of Hashpool, and Ms. Zhang Yuan, co-founder of Wabi.com, will talk about ETH2.0, issues that everyone is very concerned about.

First of all, please say hello to everyone.

Teacher Yue: Thank you, host. First of all, I would like to welcome the two guests to the BiKi live broadcast room. Thank you to all the community partners for your participation and support. I am Yue Guixiang, the community leader of BiKi. I hope that we can take this opportunity tonight to learn more about ETH2.0 and become the first batch of miners of ETH2.0.

Pan Shi: Thank you very much for the invitation from the organizer. Hello everyone, I am Pan Shi, the founder of Hashpool. Hashpool was founded in 2019 and is the world's leading comprehensive digital currency mining pool.

Zhang Yuan: Hello everyone, I am Zhang Yuan, co-founder of Wabi.com. Thank you for the invitation from the organizer. I am very honored to discuss with you today how to become one of the first miners of Ethereum 2.0.

Host: OK, the guest introduction is over. Let's get to the point. Please cooperate and don't interrupt the guest's sharing too much. We can discuss freely after the live broadcast is over.

Then let's officially start. Since we are talking about decryption, regarding ETH2.0, please give us a brief introduction from your own point of view, and what aspects of ETH2.0 do you focus on?

Teacher Yue: Ethereum 2.0 is a major upgrade to the current Ethereum mainnet, which aims to accelerate the use and application of Ethereum by improving its performance. This upgrade will greatly increase transaction volume by improving the speed, efficiency and scalability of the network, alleviate the congestion and high transaction costs of the Ethereum network, which will bring Ethereum to a new height.

We can briefly look at the four stages of Ethereum’s development:

This upgrade allows the Ethereum network to achieve high performance and scalability at a lower cost.

Pan Shi: One of the main reasons for upgrading to Ethereum 2.0 is scalability. With Ethereum 1.0, the network could only support about 30 transactions per second. This led to delays and congestion. Ethereum 2.0 promises up to 100,000 transactions per second. This increase will be achieved by implementing sharding technology.

The current Ethereum is a blockchain that consists of a single chain and continuous blocks. This is secure, but very slow and not very efficient. With the introduction of shard chains, this blockchain is split so that transactions can be processed in parallel chains instead of a continuous chain. This speeds up the network and allows it to scale more easily.

For investors, a large proportion of ETH coins will be locked up by staking, which will reduce the circulating market and help stabilize and increase the price of ETH. The design of the 32ETH staking threshold greatly reduces the inflation rate compared to ETH1.0, ensuring that the inflation rate is always below 1% and that the price is stable and will not depreciate.

Zhang Yuan: As the second largest public chain, the arrival of ETH2.0 is a very big event for the entire blockchain. ETH is the main battlefield for graphics card miners. The change from 2.0 to POS will have a huge impact on miners. Mining Coin Network is mainly concerned about the impact of 2.0 on miners. Miners can no longer mine ETH, where do miners put their graphics cards, mine other currencies or sell them, and how miners can participate in ETH2.0 mining.

Host: After understanding this, from your perspectives, what do you think are the main differences between ETH2.0 and 1.0?

Teacher Yue: ETH2.0 adds two new parts compared to ETH1.0: Proof of Stake and Shard Chains

Proof of Stake: Proof of Stake (PoS) 2.0 is an upgraded version of Proof of Work (PoW) 1.0, which improves security and scalability, is more energy-efficient, and relies on validators (virtual miners) and deposits of Ether to build new blocks.

Sharding chain: Sharding chain is a scalability mechanism that can greatly increase the throughput of the Ethereum blockchain. (Unlike Ethereum 1.0, which can only reach a throughput of 15 TPS, Ethereum 2.0 can process thousands to tens of thousands of transactions per second (or even more) without reducing its degree of decentralization)

Pan Shi: After the transition from PoW chain to PoS chain, both ETH1 and ETH2 will run on the ETH2.0 network. In the end, there will only be one ETH.

However, for now, ETH1 and ETH2 are tokens of two different chains. After the launch of the beacon chain, there will be a transition period between the two Ethereum chains. Users deposit ETH into the storage contract and can get ETH2 token incentives through the ETH2.0 network. As the ETH2.0 network stabilizes, ETH1.0 will gradually become a shard of ETH2.0. In other words, ETH2.0 is not a hard fork of Ethereum, so there will be no forked tokens, and current ETH (ETH1) holders will not get two assets. For example, in the history of Bitcoin, BCH hard forked, and users who owned BTC at that time would get an equal amount of BCH. Since ETH2.0 is not a hard fork, there is no free candy.

ETH1 tokens come from the current Ethereum PoW chain, while ETH2 tokens are generated through the PoS mechanism after the ETH2.0 BeaconChain network is launched (there are no transfers and smart contracts for the time being). After the ETH2 tokens are launched, ordinary users can choose to keep ETH1 tokens or convert their ETH1 tokens into ETH2 tokens.

Zhang Yuan: The biggest difference is that the version number has changed (just kidding). The two speakers before me have already said that the biggest difference for miners is the modification of the consensus algorithm. Miners can no longer mine ETH, or more precisely, they can no longer use graphics card computing power to mine ETH.

Host: OK, bosses, what market phenomena do you think may occur after the launch of ETH2.0 and Phase 0? What impact will it have on trading platforms, miners, institutions, etc. in the industry?

Teacher Yue: The change in the consensus mechanism will undoubtedly affect Ethereum GPU miners first. Some time ago, thanks to the outbreak of the DeFi market, Ethereum mining has become a hot commodity in the eyes of many people. Both the number of people entering the market and the computing power of the entire network are growing rapidly. However, the PoS consensus mechanism of Ethereum 2.0 does not require the current Ethereum GPU mining machines, so miners will face some challenges.

But on this issue, Mr. Pan and Mr. Zhang have more say, so I would like to ask the two bosses to help us further interpret it.

Pan Shi: From the perspective of miners, there is no need to worry about the impact of Ethereum 2.0 on mining. According to the current mining income, the static payback period of Ethereum graphics card mining machines is generally about one year (largely affected by Ethereum transaction fee income), and it is almost impossible for Ethereum to complete the 2.0 upgrade within the next year. According to the predictions of some senior people in the industry, Ethereum 2.0 will take at least two years.

The computing power of the ETH network has exceeded 195TH/s, a record high since 2020. This also shows the popularity of Ethereum this year and the belief of miners in ETH. Graphics card miners are hoarding as many coins as possible before the arrival of Ethereum 2.0, in order to better realize the investment of Ethereum POS.

There was a joke that was widely circulated online before: If Ethereum 2.0 succeeds, the price of the currency will soar, and miners will get their money back in advance; if it fails, 1.0 will continue to mine. In any case, miners will be invincible.

Zhang Yuan: Judging from the current phased roadmap of ETH2.0

Phase 0 is the creation of the POS beacon chain, the main consensus layer.

Phase 1 begins to build shards, and transfers are not possible at this time.

Phase 1.5 ETH1 joins ETH2.0 as a shard chain. ETH1.0 is officially replaced by ETH2.0, and 2.0 enables the transfer function.

Therefore, the ETH1.0 POW mining era will not end until Phase 1.5. During this period, ETH1.0 will exist in parallel with ETH2.0. According to the previous progress of ETH development, it is estimated that this will take at least 1-2 years.

There is another issue that miners are concerned about. Some people have suggested reducing the miner rewards for ETH POW mining, because 2.0 POS will also issue coins. If both sides issue coins at the same time, inflation will increase. So miners are very worried. The day before yesterday, a young man also asked Vitalik this question. Vitalik’s answer was that he predicted that the block reward would not change. This is a screenshot of Vitalik’s answer.

Another impact is if we completely switch to ETH2.0, will miners fork and keep the POW chain? From our past experience, this is indeed possible. Previously, Monero modified its algorithm to resist ASIC, and Siacoin changed its algorithm, which resulted in forks. However, at present, the forked chains are also in a half-dead state. ETH now has a very strong consensus. Even if there is a fork, it may be like ETC, a hopeless case. Besides, if you have ETC, you can just go to ETC to mine.

Host: Okay, let’s ask Mr. Yue. BiKi is currently the first to launch ETH2.0 verification node mining and launch BETH. Can you tell us how this is carried out and what are the benefits of everyone’s participation?

Teacher Yue: You can take a look at this picture. I will briefly explain it.

To apply for ETH2.0 validator to participate in mining, you need to stake 32 ETH, and you can enjoy a return of 21.6%-4.9%, but there are several issues that you need to know in advance

1. The first phase of ETH2.0 does not have the transfer function. Once deposited, it can only be traded after the second phase function is launched. This time may take one to two years

2. Running your own validator means you are responsible for validating and organizing blocks - otherwise your ETH will be penalized

3. In addition to the rewards, becoming a validator will incur other node costs of $100-120 per year

Overall, the threshold for becoming a validator and participating in mining is relatively high. After seeing this problem, BiKi is also working hard to help everyone solve these problems.

In BiKi crowdfunding ETH2.0 validators will have the following advantages

1. No technical construction costs are required, BiKi will help you

2. 0.1 ETH is enough to participate, but the ETH official requires 32 ETH to participate

3. BiKi exchanges Beth at 1:1.01, while the official exchange rate for ETH is 1:1 (the extra 0.01 is subsidized by BiKi)

4. BiKi will open the BETH/ETH trading pair. The BETH you get can be used to continuously obtain mining income, and can also be freely traded on BiKi

The BiKi platform participates in the ETH2.0 validator staking. The staking income obtained will be distributed to the account according to the user's subscription ratio, and the platform will soon open the BETH/ETH trading pair. Holding BETH on the platform can obtain staking income and can also be traded for cash at any time.

Host: Okay, the event is still ongoing, and everyone can participate. Next, let me ask Mr. Pan Shipan, is Hashpool currently paying attention to and taking actions on ETH2.0, or what will be the focus on ETH2.0 in the future?

Pan Shi: From the perspective of time nodes, it is conservatively estimated that ETH can still be mined within 2 years. For the public chain ecosystem, such a huge graphics card computing power market will definitely be paid attention to by more high-quality new public chain projects. After the market gradually matures and settles, I believe that new currencies will take over. Therefore, whether from the perspective of ETH's own update schedule and ecological development, at least in the foreseeable time, the impact of ETH2.0 on mining pools and miners is not worth worrying about.

Host: Okay, okay, let’s talk to you next, young lady, what is the response and action of Wabi.com regarding ETH2.0?

Zhang Yuan: Wabi.com has been paying attention to the developments of ETH2.0. In the miner group of Wabi.com, we often discuss the impact of ETH2.0 on miners. Wabi.com has always been paying attention to the content and related tools for miners. With the arrival of ETH2.0, we also plan to launch related ETH2.0 popular science and special pages, as well as some ETH2.0 POS mining data statistics, profit calculators and other tools.

Moderator: Although ETH2.0 has great market enthusiasm, there is still controversy about whether it can proceed as scheduled. What problems do you think may arise in the subsequent development?

Teacher Yue: At present, the progress is not very ideal. I feel that there should be a large number of users in a wait-and-see state, ready to act when the time comes. Another issue is the threshold. I believe that more institutions will participate in this "lowering threshold" campaign. I think there is a high probability of a reversal in the future. Let's wait and see.

Pan Shi: The current problem is that Phase 0: the first phase of Ethereum 2.0 will realize the "beacon chain". To successfully launch the beacon chain, at least 16,384 validators are required, which is equivalent to staking 524,288 ETH. Now the staking activity of ETH2.0 has slowed down. The staking progress of ETH has only reached 10%. The number of independent validators is 258, and the number of validator nodes is 1691 (an independent validator may occupy multiple nodes), which is still a long way from the 16,384 validators required for the launch of 2.0.

ETH2.0 is not a simple upgrade but a revolution in the entire technology. ETH2.0 is extremely complex, and every step is likely to go wrong, and there may even be further delays. However, despite these potential problems, Ethereum 2.0 is still worth a try. If it does succeed, the potential rewards are very considerable.

Zhang Yuan: There is still more than half a month left until the first time node of 2.0. Judging from the current progress, it is not optimistic. Previously, eth2validators also tweeted that according to the current progress, it may take until June next year to actually go online.

I personally still hold an optimistic attitude. Even if it cannot be launched as scheduled on December 1, it won’t be too long.

As for whether ETH2.0 can eventually meet expectations and successfully complete phase 2, it is technically difficult at present. Now there is a rollup layer2 solution, which can also improve ETH TPS. Vitalik has also proposed a roadmap centered on rollup for transition. If the rollup solution is mature by then, ETH2.0 may be completed at phase 1.5.

Moderator: Regardless of whether you are optimistic or not, everyone is still very concerned about ETH2.0. The last question, which is also of concern to many users, is whether the launch of ETH2.0 will increase the threshold for everyone to participate? And do you think it is worthwhile to participate in mining?

Mr. Yue: The threshold for participation is indeed a bit high, including capital, technology and other barriers. These reasons prevent many users from participating at all. I recently saw a joke on the Internet: "I really think that unless you are rich, proficient in technology, and very enthusiastic about the story of ETH2.0, you should not participate in the staking and verification of Ethereum 2.0.

The launch of BiKi crowdfunding node mining is because we see the existence of this threshold. As mentioned earlier, the official progress of ETH is 10%, while the progress of BiKi node crowdfunding is already more than half. Of course, this comparison may not be scientific, but in the process of communicating with participants, we can still see everyone's enthusiasm for participation.

I personally think that ETH2.0 mining is worth participating in, especially for ETH believers, the overall rate of return is still very good. BiKi has made the conditions for participation and exit more flexible, solving many users' worries. I believe that everyone's participation in BiKi is a very good choice

Pan Shi: The minimum threshold for user staking is 32 ETH. After ETH is transferred to the beacon chain, it is converted into BETH at a 1:1 ratio, that is, 32 BETH becomes a validator. If you have 64 BETH, you must run two validators, and so on. This is to avoid excessive concentration of verification power and ensure that the power and status of each validator are equal.

As you can see from the picture, the return on staking is still very considerable. If you don’t have 32 ETH, you can choose an exchange or wallet to stake. For example, BiKi should be the first exchange to release ETH2.0 products.

Zhang Yuan: From the current participation rate, we can see that ETH2.0 has a certain threshold. If it were liquidity mining, it would have been completed long ago. At present, we need a solution like Biki to lower the participation threshold and provide liquidity solutions. ETH has always been a leader in the blockchain, and the Matthew effect will become more and more obvious. I am still optimistic about ETH in the long term, and ETH2.0 is also worth participating in. And ETH2.0 will also have good mining income, so why not do it.

Host: Okay, our live broadcast is coming to an end. Thank you very much to the three bosses for sharing with us. Everyone can have a clearer and deeper understanding of ETH2.0. The live broadcast ends here, and everyone can continue to communicate in the group.