Ethereum: why are M-of-N transactions not used today?
The Ethereum blockchain has undergone significant changes since its inception. One of the key features that sets it apart from other cryptocurrencies is its use of multi-factor transaction (m-of-n) consensus, also known as Byzantine Fault Tolerance (BFT). However, despite its innovative architecture, m-of-n transactions have not become a widespread practice on Ethereum today.
What are M-of-N transactions?
M-of-N transactions, also known as Byzantine Fault Tolerance or BFT, are a consensus algorithm that allows multiple nodes in a network to agree on the validity of a transaction without relying solely on a single majority vote. The term “multi-factor” refers to the fact that each node has a unique set of factors that contribute to the validity of the transaction.
BIP 11: A Potential Solution
Back in 2016, the Ethereum community proposed BIP (Binary Interest Proposals) 11, the purpose of which was to introduce m-of-n transactions into the network. BIP 11 was designed to provide improved security and scalability compared to traditional Proof-of-Work consensus algorithms such as PoW. However, despite its promising design, BIP 11 has not yet been implemented on Ethereum.
Why were BIP 11 transactions not used?
There are several reasons why m-of-n transactions have not become widespread on Ethereum:
- Scalability: Although m-of-n consensus is theoretically more scalable than PoW-based algorithms such as PoS, the implementation of BIP 11 on Ethereum can hardly keep up with demand.
- Testing and Verification: The complex nature of m-of-N transactions requires extensive testing and verification to ensure their stability and security. This process was hampered by the lack of a standardized framework for testing BFT algorithms.
- Regulatory Environment: As with other cryptocurrencies, there are regulatory hurdles that need to be overcome before BIP 11 can be widely adopted. The lack of clear rules regarding m-of-N transactions made it difficult for developers to implement them in Ethereum.
The Future of M-of-N Transactions in Ethereum
Despite these problems, the Ethereum community continues to explore alternative consensus algorithms that could potentially improve scalability and security. Although BIP 11 may not yet have become common practice, its design represents an interesting starting point for future developments in m-of-n transactions.
Moving forward, it will be important to remove the scalability and regulatory hurdles that stand in the way of widespread adoption of m-of-N transactions in Ethereum. The Ethereum community must continue to innovate and push the limits of this powerful technology.
Conclusion
The use of m-of-N transactions in Ethereum has not yet reached its full potential, despite the innovative design provided by BIP 11. However, as the Ethereum ecosystem continues to evolve, it will be interesting to see how developers and researchers address the upcoming scalability and regulatory challenges. Will we eventually see widespread adoption of m-of-n transactions in Ethereum? Only time will tell.