Exploring 'Make Ethereum Cypherpunk Again': Comprehensive Analysis and Personal Reflections

## Exploring 'Make Ethereum Cypherpunk Again' 🔍 **Exploring 'Make Ethereum Cypherpunk Again': Comprehensive Analysis and Personal Reflections** > **Main Article Link**: [https://vitalik.eth.limo/general/2023/12/28/cypherpunk.html] >> 🖊️ **Author**: Vitalik Buterin >> github link :[https://github.com/irnb/board/blob/main/content/review/MakeEthereumCypherpunkAgain.md] ### table of contents - [ 🔖 summary](#summary) - [ 🚧 Web3 Goals & Challenges ](#web3) - [ 🔗 Non-Blockchain decentralization](#non-blockchain) - [ 🌍 Real-world integration](#real-world) - [ 💭 From Insight to Action](#inspiration) --- ## 🔖 Summary of Vitalik's Blog Post <a name="summary"></a> In his reflective piece, Vitalik Buterin revisits his early Bitcoin experiences, contrasting them with recent encounters in Zazalu. These reminiscences serve as a springboard for reevaluating the foundational objectives of blockchain and cryptocurrency. Vitalik observes a deviation from the initial ambition of fostering a decentralized base layer for the internet and human communication. He identifies key challenges, including scalability and privacy, which have inadvertently steered blockchain infrastructure towards predominantly financial applications. Vitalik also touches on the perception of the first decentralized communities towards blockchain, noting that they often see it as a distraction. He suggests avenues to change this negative viewpoint and realign blockchain with its initial decentralization goals. Furthermore, Vitalik addresses the concerning state of our current online infrastructure, marked by the emergence of a 'Splinternet' — a fragmented and controlled digital landscape. This observation segues into an examination of Ethereum's present condition and its alignment with the original cypherpunk vision. Vitalik highlights solutions such as Zero-Knowledge Proofs (ZKP), underscoring their potential in realigning Ethereum with its foundational goals of decentralization and privacy. **I highly recommend reading Vitalik's original post for its in-depth insights and the valuable links it provides.** In my article, I aim to delve deeper into certain topics he discusses, offering my critique and perspective on Ethereum's current trajectory. Additionally, I will share the research I'm going to start, directions inspired by Vitalik's insights, reflecting on how they might shape future developments in the blockchain space. --- ## 🚧 Web3 Goals & Challenges <a name="web3"></a> ### Initial Goals of Blockchain and Web3: A Reflective Analysis Blockchain and Web3 emerged with a transformative vision — to reshape the digital world through decentralization, openness, and enhanced freedom. This ambition extended beyond mere technological innovation; it aimed to fundamentally alter how we interact with the internet and each other. #### Decentralization: A Foundation for Digital Freedom The primary goal was to establish a decentralized internet infrastructure. This was not just about moving away from centralized financial systems but also about decentralizing control over data and applications. By distributing power away from central authorities, blockchain and Web3 aspired to empower individuals with more control and ownership over their digital lives. #### Open Global Participation: Bridging Digital Divides Blockchain technology was designed to be inherently inclusive, allowing anyone globally to participate as a user, developer, or observer without gatekeeping. This universal access is pivotal in bridging the digital divide, ensuring that the benefits of technology are not confined to a privileged few. #### Censorship Resistance: Upholding Digital Autonomy An integral aspect of this new digital era was creating systems resistant to censorship. This meant building platforms where centralized entities could not easily manipulate or restrict the flow of information and applications, thus preserving the integrity and freedom of digital communication. #### Building an Open Economy and Society Early visions of Web3 included creating a more open and free society and economy. The goal was to harmonize technology, social, and economic components, fostering an environment conducive to innovation, collaboration, and societal progress. #### Interoperability and Tool-Building: Cultivating a Collaborative Ecosystem The ethos of Web3 was about building interoperable tools and systems that seamlessly integrate into a broader ecosystem, as opposed to creating isolated or monopolistic structures. This approach encourages a more collaborative and innovative technological landscape. #### Community and Cooperation: The Heart of Web3 The spirit of Web3 and blockchain is deeply rooted in community-driven principles. It emphasizes cooperation, shared development, and common values, fostering a collective approach to technological and societal advancement. --- ### Personal Reflections and Contemporary Challenges #### Seeking True Digital Freedom In addition to these goals, there's an underlying quest for freedom in today's world, where we often find ourselves entangled in modern patterns of 'digital slavery' — be it debt slavery or government-controlled communication infrastructures. A key aspiration of a decentralized ecosystem is to reintroduce aspects of freedom into our daily lives, breaking away from these invisible shackles. #### The Irony of Goals Becoming Challenges Interestingly, some of the original goals of blockchain and Web3 have morphed into challenges in the current landscape. The dream of complete Censorship Resistance and Open Global Participation is yet to be fully realized. Our dependence on the existing internet infrastructure, governed by major players, poses significant barriers. For instance, personal experiences in Iran highlight the struggle to engage with blockchain protocols due to IP location restrictions and reliance on VPNs. This isn't necessarily a flaw of the protocols themselves but a consequence of their dependency on centralized network infrastructure, often governed by entities like Cloudflare, which may inadvertently block certain traffic. Moreover, recent reports of block builders applying office rules to drop non-compliant transactions suggest the onset of censorship akin to what we witness in the Web2 space. This highlights the need for diverse node types, enhanced privacy in the MEV supply chain, and protocols that genuinely support decentralized global participation. > just try to send a transaction to TornadoCash today as normi user and see how difficult gonna be. [Block Builder Censoring Report](https://twitter.com/batenieth/status/1732706591558803577?s=61&t=lz5_23ZvzNwFv25PVfksGg) --- ## 🔗 Non-Blockchain decentralization movement <a name="non-blockchain"></a> Vitalik mentions the Non-Blockchain decentralization movement several times in his article. In this section, I want to shed light on this movement, exploring its history, current situation, and how it complements the blockchain ecosystem. The non-blockchain decentralization movement is a broad and diverse field that encompasses various technologies and philosophies aimed at reducing central points of control in digital and social systems. It predates the blockchain era and continues to evolve alongside it. #### Early Beginnings: The Vision of a Decentralized Internet Originally, the internet was envisioned as a decentralized network for shared data and resources. Early internet protocols like TCP/IP were designed with this decentralization in mind. This vision laid the groundwork for later developments in decentralized digital communication. #### Peer-to-Peer Networks and the Rise of File Sharing In the late 1990s and early 2000s, peer-to-peer (P2P) networks gained prominence. Platforms like Napster and BitTorrent facilitated direct user-to-user file transfers, embodying the decentralized ethos by enabling data sharing without central servers. #### Open Source Software: A Paradigm of Decentralized Development The open-source movement has been a significant part of the decentralization ethos, with community-driven projects like Linux and Apache. These projects are decentralized in their governance and development, promoting collaboration and shared progress. #### Decentralizing Web Content and Communication Projects like IPFS (InterPlanetary File System) and DAT aim to decentralize web content storage and distribution. Additionally, federated and P2P social networks like Mastodon and Scuttlebutt offer decentralized alternatives to traditional social media platforms. #### Current Advances in Decentralized Technologies Today, the movement includes various efforts such as decentralized identity systems, mesh networks for localized internet, and new forms of decentralized content distribution. These efforts aim to reduce reliance on centralized internet infrastructure and empower users. #### Privacy Focus: A Common Ground Tools like Tor and Signal, while not decentralized in the blockchain sense, contribute to the decentralization movement by enhancing privacy and security, thereby reducing dependence on centralized data collectors. #### Synergy with Blockchain While distinct from blockchain, the non-blockchain decentralization movement shares common goals with it, such as reducing central control and enhancing user empowerment. There is growing collaboration between these areas, with each complementing the other in the quest for a more decentralized digital world. ## 🌍 Real-world integration <a name="real-world"></a> The ultimate ambition of blockchain technology is not merely to exist as a backdrop for financial games but to be integrated seamlessly into our everyday lives. Imagine a world where one can travel globally, using cryptocurrency for all aspects of living. This vision of real-world integration of blockchain technology goes beyond its current financial-centric use. Step One: Empowering Users and Customers The first step toward real-world integration is to empower users and customers. Initiatives like Gnosis Pay are crucial in this phase, providing users with practical and usable blockchain-based solutions. By focusing on user experience and utility, blockchain can become more than a niche technology, finding its place in everyday transactions. Step Two: Expanding the Merchant Base The next step involves bringing more merchants into the blockchain ecosystem. However, this is no small feat due to various barriers that need addressing. The expansion requires not just technological solutions but also a shift in perception and acceptance by the mainstream market. Addressing Key Challenges Several challenges stand in the way of mass adoption: Privacy and Fungibility: How do we ensure that transactions remain private and fungible, especially when dealing with the aftermath of hacks or rug pulls? The challenge is to maintain privacy without compromising the legitimacy and morality of transactions. Regulatory Hurdles: A significant barrier is the regulatory environment. For instance, merchants might refuse service to users whose addresses have interacted with mixer protocols, citing regulatory compliance. This creates a controversial space where privacy and regulation are at odds. Finding Decentralized Solutions: As Vitalik suggests, central approaches to these challenges are not desirable in the ethos of blockchain. We need to figure out how to address these issues through cryptography, without losing our core values of privacy and decentralization. Beyond Financial Applications Blockchain's potential extends into various other aspects of life. Trust minimization in AI models is one such area. if i want make summary about the non financial uncase in one word, i can say **d/acc** ## 💭 From Insight to Action <a name="inspiration"></a> After reading Vitalik's blog post, I've gained several insights and ideas that have inspired me to embark on various research and development projects. Here's an overview of what I plan to do: 1. Exploring Privacy on the Ethereum Virtual Machine (EVM) These solutions partially address privacy concerns but also introduce new challenges. The primary issue lies in how these approaches, involving contract interactions, create an anonymity set. Unfortunately, this set often represents only a small fraction of the entire network. To tackle this, we are exploring ways to expand the anonymity set to encompass the size of all active addresses. Five months ago, my colleague and I proposed EIP7503, which introduces an innovative approach to interact with contracts and protocols indirectly, utilizing Zero-Knowledge Proofs (ZKP). This method allows for engagement without direct transactions. However, a critical challenge we face is how to manage temporary, transferable burn addresses effectively within this framework. I believe technologies like Multi-Party Computation (MPC) and Fully Homomorphic Encryption (FHE) might offer solutions in the future. I plan to write in-depth about these concepts and the current limitations we face. 2. Deploying DApps to IPFS and Using ENS Another area of interest is how to deploy decentralized applications (DApps) to IPFS (InterPlanetary File System) and serve them through Ethereum Name Service (ENS). This process involves using valid DApp addresses and integrating with tools like MetaMask Snaps to prevent phishing attacks. I aim to provide a comprehensive guide on this process. 3. Writing about ZK-OTP Idea on Eth-Research 4. Reviewing ZK-Email 5. Researching Ethereum's Decentralization and Censorship Resistance A crucial part of my research will focus on the current state of decentralization and censorship resistance in Ethereum, particularly in the context of Miner Extractable Value (MEV) and Proposer Builder Separation (PBS). I aim to explore how these factors affect the network's overall resilience and censorship status. 6. Write about the concept of reusable temporary contracts on Eth-Research and implement a simplified version of this approach.