Ethereum Advanced

nice. i appreciate. Keep Going

for now its just starting let see how I learn complex topic

I think if you could look into the type of blockchains, it may answer you. Nevertheless, I will try to answer from my understanding.

I read about types of blockchains and familiar blockchains such as bitcoin and ethereum are permissionless, which is anyone can become a member and use it to transact and enjoy the features and benefits it offers.

On the other side, there is a permissioned blockchain, which can be created by a business for its internal purposes, where only its employees can participate and use the blockchain.

I am not sure if i have misunderstood your question. Let me know if I did so.

Thanks, I haven’t been on here in a long time unfortunately. This was good encouragement!

you can’t really tell the identity of account addresses in utxos, as you can send btc to yourself and another recipient in the same transaction, making your activity harder to mask. in eth, you cannot money to yourself (same account).

Hi Eric,

Effectively, yes … The gas price/cost of a transaction, which is paid by the sender of the transaction, is received by the miner who successfully mines the block which includes that transaction. At least that’s how it works under the current Proof-of-Work consensus mechanism. Ethereum 2.0 moves to Proof of Stake, where, instead of a miner, the gas paid for a transaction will be received by the randomly-chosen validator who proposes the block, containing that transaction, which goes on to be successfully validated by other validators and included in the beacon chain. Validators are those who are staking more than 32 ETH.

Under Proof of Work, only if you are mining node, and only when you successfully mine a block: you will receive all of the gas fees for the transactions which you included in your successfully mined block.

Under Proof of Stake, only if you are a validator: you will receive a reward whenever you are randomly chosen to propose a block, and that block is then successfully validated by other validators and included in the beacon chain.

Hi Jonathan

Thanks for your answer. So basically everything goes to the miners or a mining node. Except when Ethereum migrate to Proof of Stake, then it goes to any 32-eth validators on random basis. Very clear. Appreciate your hard work. Thanks Jonathan.
Eric

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Hi Eric,

Before the London upgrade (August 2021), yes … but since this recent upgrade the gas fee per unit of gas is now a combination of the base fee (set by the network) and a priority fee (a tip set by the sender or their wallet). The total base fee, which is a large proportion of the total gas fee, is burnt, and only the total tip is received by the miner who successfully mines the block which includes the transaction.

The miner receives their block reward plus the tip for each transaction included in their successfully mined block.

I’ve probably misled you in terms of “random basis”

This is over-simplified and not the full story…
Your original question was about who receives the gas fees. As I’ve explained above, a large proportion of the gas fee (the base fee) will now be burnt. Under Proof-of-Work it’s clear to me that it’s the miner who receives the tip portion of the fee (priority fee) for each transaction included in a block which they successfully mine. However, I’m not sure whether it’s as clear cut under Proof-of-Stake as the randomly-selected “block proposer” receiving all of these priority fees. I don’t know the expected proportions, but it seems to me as though the vast majority of the reward received by validators will be newly-issued ETH (like the current block reward) rather than from unburnt gas proceeds.

Validators are grouped into randomly-selected committees (groups of 128 validators). One validator from the committee is randomly-selected to propose a new block. The block proposer only receives a proportion of the block reward, and the rest is shared amongst the other validators in the same committee who validate the block (known as attestation). The exact process is complex and this is a very high level overview, but I would encourage you to do some research yourself. What I’m not yet clear about is whether the gas tips for each transaction included in a successfully added block (i) all go directly to the block proposer, (ii) are added to the rest of the reward and then shared (on the same proportional basis) between the block proposer and the other validators in the same committee who attest the block, or (iii) are distributed indirectly, in some other way.@thecil Do you know the answer to this?

And whilst you have to stake 32 ETH to become a validator, you can stake less and join a staking pool. You would then receive a proportion of the staking pool’s profits. From what I understand, each validator runs a node with the appropriate software to apply the Proof-of-Stake protocol. An individual staking pool, however, could run multiple nodes, each node performing the function of a separate validator.

As you can see, in practice, the reality of who actually ends up with what reward can easily become very complex indeed.

I have found a nice article which explain in details the rewards of a validator, tasks and rewards for them.

https://medium.com/interdax/ethereum-2-0-explainer-e996ac7dc006

Check on “Potential Returns (and Risks) for Validators”.

Hope this helps :nerd_face:

Carlos Z

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This article looks great @thecil !

I’ve had a quick skim through, but will read it through thoroughly later :muscle: :face_with_monocle: Unless I’ve missed something, it doesn’t seem to confirm what actually happens to the gas fees paid to transact on the network which aren’t burnt (the tips). I’m going to check the detail later, but it does appear to confirm my broad-brush summary of how rewards are distributed to validators. So, unless I can find otherwise, it does seem that the tips are not earmarked to be paid for a specific job in the Proof-of-Stake mechanism, but will probably offset the newly-minted Ether required to meet the rewards payable to validators as calculated per the protocol. Anyway, this is my suspicion, and would seem logical considering what I understand so far.

I’ll provide an update here, once I’ve read the article in detail.


FYI @ecbwonghttps://medium.com/interdax/ethereum-2-0-explainer-e996ac7dc006

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Thanks Jonathan for the link and additional information

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enjoying the courses very much

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Just wondered to the topic of Token standards and NFT’s,

Ivan speaks of fungible tokens, that are identical tokens, can’t distinguish one from another. I first thought he meant different tokens that have the same way of programming and therefore act for the same purpose or something like that, but then going back and forth a bit I thought,
It is the “same” token he speaks about, so 1 ETH is non different from another 1 ETH and similar with any other currency that uses ERC20, is that understanding correct ?

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Indeed, for the blockchain, 1 ETH its the same than another ETH, all erc20 tokens (like DAI) are the same from that point of view (there is no difference between the ETH i have in my wallet from yours, both are fungible tokens without a unique property).

But this is not the case on NFT, where 1 nft is unique from the rest of their kind (like each cryptopunk or axie).

Hope it helps. :nerd_face:

Carlos Z

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Yes, thank you Sir!
I’m fairly new to all of this and there is a lot to take in and a great potential to misunderstand some things or get maybe a wrong idea. I hope sometimes people are overlooking our homework, but good the community is taking care a lot about that. I’m really enjoying learning with moralis.acadamy though, great experience so far !

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Hi everyone,

I’m also relatively new to the academy and glad I finally committed to study this space in a structured manner which is one of the things I like about the courses. I do however feel that because I already self-studied prior to joining the academy (be it in an unstructured way), that all the background information although useful is slowing me down from getting into the more technical and practical application of the knowledge because I feel obligated to go through the foundational stuff sequentially first in case I regret skipping and missing something later… not really sure of the solution other than patience really but I want to get stuck in practically and not just keep watching videos and doing homework…I can do that on YouTube, boring… we’ll see…

Hello fellow students!

Hope all is well, as for me…I’m enjoying the course so far and finally getting back en route after a long break. Gotta catch up with all the new students :slight_smile: other than that best of luck everyone, see you next round.

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Hi Guys, I’m really enjoying the course so far. After taking my time to complete Bitcoin and Blockchain 101 !! I am now encouraged to push on and complete more modules. I am very excited to learn about Ethereum and smart contracts, this technology can truly change the world. Thanks again.

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What to do if tokens/coins on Metamask have lost most of the value they were acquired at and each one of them has less value than the gas fees needed to exchange or move them? Can they legally be taken as loses as the value they currently have is actually worthless?

for now everything clear, but hello everybody, nice to be part of the community

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