ABSTRACT

Engineering is helping us in understanding how technology works and/or can be improved, but it also helps us in predicting the future, to some extent. For the moment we cannot be 100% accurate in predictions, because well we do not understand the nature of the Universe. But anyway, this predictions can, in a vast majority of cases, prevent catastrophes and/or predetermine occurrence of some worse case scenarios, if of course something goes wrong in the technological process. In the tech industry, if it is either chemical, electrical, mechanical or nuclear, history shows that many disasters happened, and in 100% of the cases a lack of security and prevention, a bad methodology against human error or even system protections were not implemented due to "high costs" or "non profit" improvements for the respective investors. Failsafe devices can be very elaborate and sometimes extremely expensive, therefore many companies  and/or corporations avoid them.

I am saying all of these things to demonstrate that a disaster can happen in every aspect of our lives, but mostly in tech industry where, it can be easily be avoided if those failsafe mechanisms are properly implemented.

THE BACKGROUND HISTORY

In the crypto industry, most of the time if not all the times, there is a zero failsafe mech. because, apparently, there is no need for that, to much coding I guess... or maybe laziness, who's to say... This did not happened with Satoshi Nakamoto, when he thought of absolutely everything that can affect in a bad way the blockchain and the Bitcoin's future network respectively.

Then it came The DAO (Decentralise Autonomous Organisation) that it was suppose to be the future, until it wasn't... the hack and such... The hack was definitely intentional and many would argue that it was not Buterin's side but the Hoskinson's side. I definitely do not believe that Hoskinson wanted to corrupt the network (he left Ethereum to form IOHK with Jeremy Wood), otherwise he would have stayed at Ethereum Classic board of directors immediately after the hack (he became later a member of it in 2018, but that's beside the point). Still there is a possibility for him to got involved in some form... mostly because he is not a pure honest individual (in the past he pretended to be Satoshi to fool people to get into the Bitcoin market).

After The DAO hack, Ethereum founders started to get worried that, if a failsafe mechanism will not be introduced into the ETH's protocol, a critical catastrophe may occur. That failsafe mechanism is the "difficulty bomb", which it's intent is to force miners indirectly to leave the network by making it incredibly difficult to mine a block, therefore radically reducing mining profits. Buterin took every bit of code in a critical analysis, and many test nets have been successfully deployed and run. But still there is something fishy behind this and it bugged me ever since I learned the history of how Ethereum came into existence, I'm referring to the premined coins (the premining means that before public mining there were minted few milions of coins and given to developers for a phenomenal profit) and later this DAO failure (if you think of it it was against decentralisation, which Vitalik definitely doesn't like it). He pretended to like this idea but in fact the system he proposed is completely opposite of a decentralised finance. Here is a tweet that proves his mentality over ordinary people that want to get a freedom in finance by validating transaction in a node. 

What he meant in that tweeter is that people

Aaaammm... jeessh...  do I need to say more about this Ethereum thing if the Core developer is thinking of us like this? Should I continue writing what is obvious?

Well, for the sake of this post I'll move on by saying, over the years the ETH became the "King of Altcoins", no doubt about it, and this was thanks to the aggressive advertising and popularisation of it's "great" benefits. Investors were happy, majority of miners were happy and everything went to the Mary Way until later years. The Ethereum is dumping now in 2022 the security and therefore the miners (because this was the intention from the beginning to do so, and I will explain why later on what were the reasons behind this), to go into a way less secured protocol where the super rich investors will be even more richer and the poor will not be able to become wealthy anymore. 

The IP 1559 prevents future retail investors to become wealthy and is making only institutions to "sit on the pile of cash", validating transaction like banks are doing today. The previous BOSS becomes the future BOSS. You might agree with this or not, it depends on how your perspective is. 

Over the years, the miners had to invest into more and more advance hardware to keep up the pace of the daily increasing DAG file, therefore the network reached the point that a vast majority of hardware equipment must have a minimum of 6 GB VRAM (5 GB for the DAG file and the remaining for OS's memory) in order to be kept operational. The hashing power also reached tremendous levels and made mining less and less profitable, but the miners kept believing in the ETH decentralisation and continued to mine, by doing so were also securing the network. Nobody made any attempt for a large 51% attack, they trust our "beloved" skinny Russian. Bad miners mistake I guess, or maybe to much trust? Well anyway that decentralisation ideology has been changed lately, because apparently is more profitable the PoS than PoW, for institutional investors. 

While Vitalik kept pushing the merge, I presume that we were wrongly misinformed. I do not know if it was a bad intention, but as far I see it now these "more tests and more research" were excuses to actually wait until the DAG file was high enough to force low VRAM miners to quit hashing and to leave the blockchain, this migration would reduce Network's Security to low levels afterwards, and finally all this process would make the "Difficulty Bomb" to become more effective.

I am not a hater and I never was, but before I make a statement I always research for the motives behind, basically anything. I truly love technology and I am enthusiastic about it, still in later years I kind of lost that as well, especially after Celsius bankruptcy, where I invest more then 2000 USD, and now apparently are all gone... When it comes to Ethereum, the ambiguity and shady past, it made me to avoid investing in it. When it comes to fairness, especially in finance where we put our own money into "stake", I found out that it was a hidden truth behind the new PoS protocol.

That is: You must buy to own the coins and those with large pockets, will always have the advantage... ALWAYS...!

PoS is no different then a bank investment, and if at the beginning it can be, quote "sufficiently decentralise" (William Hinman, the former director of the SEC's Division of Corporation Finance), sooner or later, PoS coins, will become extremely centralised in a handful of corporations wallets.

Basically ETH 2.0 = BANK 2.0 = CBDC 1.0

It is absolutely incredible to me that people did not saw the ETH centralisation coming. Proof of Stake is exactly that! 

Now more then 51 % of the staked eth are held by two addresses, WOW. I saw something of centralisation coming but not that crazy...

THE FUTURE

- The CBDCs are a certainty and after they will be implemented world wide, I estimate that the banking institutions and governments will ban you to use any kind of CBDC to buy cryptos, and Ethereum will be no exception. So the question is next how are you going to get your ETH then? 

- You will need either you previous crypto investments or PoW cryptocurrencies (the later are produced permanently through mining), or a special permission from the bank to use their CBDC to by ETH or crypto in general.

- After a while the stake holders will observe that their income it will be greatly reduced and will start to panic.

- When that will happen less and less ordinary people would get interested in investing in a PoS ETH which will lead to a change in marketing strategy for the ETH biggest stake holders and developers.

- The SEC will file a law suit against ETH because, surprise surprise, Ethereum network is not decentralised enough anymore.

- Most of the layer 2s blockcchain in Ethereum will move to other layer 1s or will be themselves a layer 1 protocol.

- Meanwhile, if PoW ETH will be a certainty and people will still have a trust into this algorithm, then PoS ETH developers will reconsider to come back to proof of work algorithm in order to make ETH attractive to retail investors and miners and under the threat that SEC will win the case against them.

- After all the nonsensical decisions the ETH core developers took over the years, the Ethereum Network will be so widely adopted by institutions and not the retail investors which will make the blockchain in a slow decline.

- In the later years of the ETH's life, the perverse corruption of it's protocol will be taken to such high levels that the people will completely lose interest for investment even that ETH might transition back to PoW.

That will be the death of the ETH as we know it...