Vitalik Buterin Reacts to Digital Delphi’s New Ethereum Research: Reports Are Unlikely To Be True

Yesterday we reported about the all-new Ethereum-centric study released by New York-based alt-asset research firm Delphi Digital. According to a page in Delphi Digital’s report titled ‘High Beta Risk-Reward’, ETH’s beta indicators seem to suggest that the currency has been experiencing way more volatility than BTC over the past 180 days.

As a general rule of thumb, one should remember that almost all cryptocurrencies tend to move in a similar direction when a particular market trend starts to set in. This phenomenon has become evident recently since many digital tokens have now begun to reach their

“highest levels of sustained correlation to bitcoin since their inception”.

As a result of this, it is nearly impossible to find a digital asset that will not follow Bitcoin’s movements, especially from a volatility viewpoint.

However, Vitalik has found flaws in this report.

Buterin also adds:

“If the cost to process one shard exceeds staking rewards from 32 eth, then that means transaction fees need to go up and/or shard count needs to go down. Theoretically, the tx cost of a shared chain ultimately only needs to be the cost of downloading and verifying it ~1000 times, which is actually not that high. Anything that can't afford that should definitely be L2.”

In the aforementioned report, the researchers wrote about the shift from PoW to PoS. The say:

“There is a risk in the transition from PoW to PoS, and PoS has a shorter history to evaluate. However, we believe the change could be a net benefit for Ethereum. Since we have refuted the previous arguments why ETH cannot accrue value, this is a benefit for the network’s security under PoS.”

To which Vitalik replied on Twiter:

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