Introduction

• In this analysis, You will read about Ethereum Beacon Chain. We want to know the decentralization of the PoS network, as well as the slashings of proposers and attesters since the Merge.
• I went through Ethereum Beacon Chain and analyzed these parameters:
  • Deposits transactions
  • Validators
  • Deposited Volume in ETH and USD
  • Deposits Breakdown
  • Users Breakdown
  • Slash Vs. Without Slash

Analyzed by Hess - Reading Time Almost 8 Min.

Method

• I read the Beacon chain document from Flipside documents and the Used Deposits and Blocks table to analyze the Ethereum Beacon chain after the Merge.

Slash Vs. Not Slash

• Based on blocks, As you can see the total number of slashed blocks is not too much. In 400K blocks, Only 23 blocks were slashed. These numbers show there was no punishment and everything works prefectly.

What is Ethereum?

Ethereum is a decentralized, open-source blockchain with smart contract functionality. Ether is the native cryptocurrency of the platform. Among cryptocurrencies, ether is second only to bitcoin in market capitalization. Ethereum was conceived in 2013 by programmer Vitalik Buterin

What is Beacon Chain?

The Beacon Chain was the name of the original proof-of-stake blockchain that was launched in 2020. It was created to ensure the proof-of-stake consensus logic was sound and sustainable before enabling it on Ethereum Mainnet. Therefore, it ran alongside the original proof-of-work Ethereum.

How Beacon Chain Works?

• The Beacon Chain was the name given to a ledger of accounts that conducted and coordinated the network of Ethereum stakers before those stakers started validating real Ethereum transactions. It did not process transactions or handle smart contract interactions.

• It introduced the consensus engine (or "consensus layer") that took the place of proof-of-work mining on Ethereum and brought many significant improvements with it.

• The Beacon Chain was a foundational component for the secure, environmentally friendly and scalable Ethereum we have now.

A Summary of the most Important Findings

• Since the Merge ( September 15) about 1.1M ETH which is worth 1.5B US dollars deposited on Ethereum in 37K transactions.
• The average deposited ETH is around 30 ETH and The average deposited ETH in USD is 42K US dollars.
• The lowest price of 32 ETH was in October which was 33K US dollars and the highest price of 32 ETH was 50K US dollars in late October.
• During late October and the beginning of November, The total deposited ETH amount increased.
• The total volume of 32 ETH deposits is 1.4B US dollars and 32.5K of transactions were deposited 32 ETH.
• The Validator’s breakdown based on deposited ETH shows The deposited ETH distributed between all validators.
• Most blocks are not slashed.

Full Analysis

Deposit ETH

• Overall, Since the Ethereum merge, the total number of deposits is 37.7K. Right after the merge, The total number of deposits increased but in October decreased. Again, in late October, The total number of deposits increased for a short time, and In November dropped.
• The highest number of deposits happened on September 23 which was 1865 transactions.

What is The Merge?

• The Merge was the joining of the original execution layer of Ethereum (the Mainnet that has existed since genesis) with its new proof-of-stake consensus layer, the Beacon Chain. It eliminated the need for energy-intensive mining and instead enabled the network to be secured using staked ETH.

THANK YOU FOR READING!

ALL CODES AND CONTENTS WERE WRITTEN BY HESS

:bird: Twitter: @hessaminanloo

:flying_disc: Discord: hess#0890

:calendar: Analyze Date: 2022/NOV/10

• The average ETH prices changed too much after the Merge. Based on ETH Volume, The average had some ups and downs but based on USD the average deposited ETH increased over time. Especially after October 23 when the average deposited ETH in USD reached up to 50K US dollars. The average USD is important because users need 32ETH to became a validator on Ethereum. The average Deposited ETH in USD in the Begining of October was only 33K US dollars.

• The average deposited ETH is around 30K and the average deposited ETH in USD is 42K US dollars. Right now, The average Deposited ETH is around 39K US dollars. It is a great opportunity for those who want to become Ethereum Validators. Since the merge, about 1.12M ETH was deposited which is worth 1.5B US dollars.

Active Validators

Breakdown

• It is interesting that the deposited ETH is distributed among all validators.

• The total number of validators deposited 32 ETH is 35K.

• This chart proves the decentralized Ethereum chain. because the power is distributed between validators and they can not manipulate the Network if they want.

• 1 ETH was deposited into 2 validators, 16 ETH was deposited into 235 validators and there was only 1 validator with 64 ETH.

Conclusion

• Staking takes place in a more decentralized manner. It enables greater involvement because, unlike mining, additional nodes do not imply higher percent profits. Staking enables safe sharding. Shard chains will allow Ethereum to construct many blocks at once, allowing transactions to be processed faster. In a proof-of-work system, sharding the network would reduce the amount of power required to compromise a piece of the network.
• As you read the analysis, You may see that deposited ETH distributed between validators and helped Ethereum to be more decentralized.