Ethereum governance

As Ethereum continues to grow and mature, it will be important to continue to refine and improve its governance model in order to ensure that it remains a decentralized and transparent platform that serves the needs of its users. This will require ongoing collaboration and dialogue between all stakeholders, including developers, users, and investors, to ensure that the platform remains aligned with the values and goals of the Ethereum community.

One of the main challenges facing Ethereum governance is balancing the needs of the different stakeholders involved. This includes developers, users, investors, and the Ethereum Foundation itself. Ensuring that the needs of all of these groups are taken into account can be difficult, and it requires ongoing communication and collaboration to ensure that the platform is able to meet the needs of all of these groups.

Another challenge is ensuring that the Ethereum governance process is transparent and accountable. This is especially important given the decentralized nature of the platform, as it is critical that all stakeholders have the ability to have their voices heard and their concerns addressed.

One way that Ethereum is addressing these challenges is through the use of voting mechanisms, such as the ECF, which allow for more democratic decision-making processes. In addition, the Ethereum Foundation has implemented a number of transparency initiatives, such as open meetings and the creation of a transparency portal, to ensure that stakeholders are able to stay informed about the latest developments and decisions being made within the Ethereum community.

Despite these challenges, Ethereum governance has been largely successful in ensuring that the platform is able to adapt and evolve over time. It has been able to successfully navigate significant challenges, such as the DAO hack, and has continued to grow and thrive as a result.

Best practices and design patterns for Ethereum development

As Ethereum continues to gain popularity as a platform for decentralized applications (dApps), it is important for developers to adhere to best practices and utilize design patterns in order to create robust and secure dApps.

One key best practice for Ethereum development is to use a modular architecture. This involves breaking down the dApp into smaller, more manageable components that can be tested and developed independently. This not only makes the development process more efficient, but it also makes it easier to identify and fix issues.

Another important best practice is to use version control systems such as Git to track changes to the dApp’s codebase. This allows developers to easily revert to previous versions if necessary and collaborate with other team members.

Design patterns are also essential for Ethereum development. One commonly used pattern is the factory pattern, which allows developers to create new instances of a contract without having to hardcode its address. This is useful for deploying contracts to different networks or for testing purposes.

Another useful design pattern is the upgradable contract pattern, which allows developers to make changes to a contract without having to deploy a new version. This is particularly useful for bug fixes or feature updates, as it avoids the need to migrate users to a new contract.

Overall, adhering to best practices and utilizing design patterns can help ensure the success of an Ethereum dApp. By following these guidelines, developers can create more efficient and secure dApps that are better able to meet the needs of users.

Different types of Consensus mechanisms

Consensus mechanisms are an essential component of any decentralized system or blockchain. They are the process by which a group of participants in a network reach agreement on a single version of the truth. In a decentralized system, there is no central authority to enforce rules or make decisions, so the consensus mechanism is what ensures that the network operates smoothly and fairly.

There are several different types of consensus mechanisms, each with its own strengths and weaknesses. Here are some of the most common ones:

Proof of Work (PoW)

Proof of Work is the consensus mechanism that is used by the Bitcoin blockchain. It works by requiring participants (miners) to solve complex mathematical puzzles in order to validate transactions and add them to the blockchain. The first miner to solve the puzzle gets to add the block to the chain and is rewarded with a small amount of cryptocurrency.

Proof of Stake (PoS)

Proof of Stake is a consensus mechanism that uses a different approach to validate transactions. Instead of requiring miners to solve complex puzzles, it relies on a group of validators who are chosen based on the amount of cryptocurrency they hold (their stake). The more cryptocurrency a validator has, the more likely they are to be chosen to validate a transaction. This system is less resource-intensive than Proof of Work, but it has its own set of potential problems, such as the potential for validators with a large stake to dominate the process.

Delegated Proof of Stake (DPoS)

Delegated Proof of Stake is a variation of Proof of Stake that involves a group of elected representatives who are responsible for validating transactions. The representatives are chosen by the network participants through a voting process. This system is meant to be more democratic and efficient than Proof of Work, but it has faced criticism for being susceptible to centralization and bribery.

Federated Byzantine Agreement (FBA)

Federated Byzantine Agreement is a consensus mechanism that is used by the Stellar blockchain. It works by having a group of trusted nodes (called validators) that are responsible for verifying transactions. The validators reach consensus by communicating with each other and agreeing on the validity of the transaction. This system is faster and more efficient than Proof of Work, but it relies on the trustworthiness of the validators.

Proof of Authority (PoA)

Proof of Authority is a consensus mechanism that is used by private blockchains or those that require a high level of security. It works by having a group of trusted individuals or organizations (called validators) that are responsible for verifying transactions. This system is more efficient and secure than Proof of Work, but it relies on the trustworthiness and integrity of the validators.

Consensus mechanisms are an important part of any decentralized system, as they ensure that the network is secure, efficient, and fair. It’s important to carefully consider the pros and cons of different consensus mechanisms before choosing one for your project.

Getting started with Chainlink development using Truffle and Infura

Chainlink

Chainlink is a decentralized network of nodes that provide data and information from off-blockchain sources to on-blockchain smart contracts via oracles

Chainlink greatly expands the capabilities of smart contracts by enabling access to real-world data and off-chain computation while maintaining the security and reliability guarantees inherent to blockchain technology.

This tutorial will be based on this repo and we will use Truffle – a development environment, testing framework and asset pipeline for Ethereum

Prerequisite

1. Install NodeJS
2. Install Truffle: npm install -g truffle
3. Install Metamask
4. Install Ganache
5. Install VSCode
6. Install Solidity Plugin

Hands on: Truffle + Chainlink

npm install --global yarn

mkdir Chainlink

cd Chainlink

truffle unbox smartcontractkit/box

yarn

Running tests Run Ganache or enable/integrate Kovan testnet npm test

All tests of /test will be executed. There are tests about creating requests with and without Link tokens, sending these requests to oracle contract addresses, and testing contract ownership.

Note You must acquire some LINK for interact with you smart contract. Get some LINK via Chainlink Kovan Faucet website 🤑 🤑 🤑

Ganache deployment

truffle migrate --network ganache --reset

Kovan deployment

1. Setup Metamask and connect to Kovan network
2. Faucet: faucet.kovan.network
3. Create account and a project using Infura.io – step-by-step tutorial
4. Infura setup and “env.sample” file configuration

truffle migrate --network kovan --reset

Helper scripts

Scripts to interact with deployed smart contract without any frontend implementation:

1. fund-contract.js

npx truffle exec scripts/fund-contract.js --network kovan

1. request-data.js

npx truffle exec scripts/request-data.js --network kovan

1. read-contract.js

npx truffle exec scripts/read-contract.js --network kovan

● fund-contract.js

➢ Send 1 LINK to requesting contract

● request-data.js

➢ Chainlink request to be created from the requesting contract

● read-contract.js

➢ Read the data variable of the requesting contract (current price of pair ETH/USD)

Additional Information

Chainlink docs

Chainlink official website

Truffle Starter kit impl

Code a REAL WORLD dApp with Chainlink - Ethereum, Solidity, Web3.js

What Is Chainlink in 5 Minutes

What is Chainlink and why it is important for crypto-ecosystem?

Why

Blockchain’s inability to fetch reliable information from the real world

● Huge vulnerability in decentralized applications when Blockchain wants to take advantage of off-chain data

● Origins of data are also the points where data can be manipulated, compromised, or simply falsified

● Chainlink started on Ethereum but it’s also available on Polkadot, Hyperledger, etc…

Chainlink

Decentralized network of nodes that provide data and information from off-blockchain sources to on-blockchain smart contracts via oracles. LINK is built on Ethereum in accordance with the ERC-20 standard for tokens

❏ Sep 2017 – Chainlink raises $32 million in an ICO creating 1 billion LINK tokens

❏ Nov 2018 – Chainlink acquires TownCrier

❏ May 2019 – Chainlink is launched on Ethereum mainnet

❏ May 2021 – Chainlink 2.0 whitepaper

The Chainlink’s oracle

Oracle – Middleware that acts as an intermediary, translating data from the real world to smart contracts on the blockchain and back again

Chainlink – Decentralized network of nodes that provide data and information from off-blockchain sources to on-blockchain smart contracts via oracles

🥇 Market standard for decentralized oracles

✅ Enhance and extend the capabilities of smart contracts on a target blockchain through functions that are not available natively

✅ To minimize the potential failure of oracles: Distribution of data sources, Distribution of oracles and Use of trusted hardware

✅ The Chainlink Reputation Contract

Chainlink 2.0

Chainlink 2.0: Next Steps in the Evolution of Decentralized Oracle Networks

Oracle networks go far beyond delivering highly validated data, they provide the various decentralized
services that are combined with smart contracts to create real world outcomes. These hybrid smart
contracts are already redefining our industry as DeFi.

🔥 Hybrid Smart Contracts that are seamlessly connected to all necessary off-chain resources, while retaining increased levels of privacy and being secured

🔥 New “architecture” enables more advanced off-chain computation

🔥 Increase number of services since ecosystem is more flexible and enhance its capabilities. Chainlink is the future of DeFi

Glossary

ERC-20: technical standard used to issue and implement tokens on the Ethereum blockchain. It makes easier for developers to predict with more accuracy the interaction between different tokens and applications

Faucet: website that distributes small amounts of crypto

ICO: An Initial coin offering occurs when company looking to raise money to create a new coin, app, or service launches an ICO as a way to raise funds. Similar to an IPO

Middleware: software that acts as a bridge between an operating system or database and applications, especially on a network

Off-chain: Transactions which agree to happen outside the blockchain

On-chain: normally refer to as blockchain transactions which happens inside the blockchain

Additional Information

Top Oracles Tokens by Market Capitalization

77 Smart Contract Use Cases Enabled By Chainlink

Expanding Beyond Data Delivery With Chainlink 2.0