Validators paid in Eth instead of ENG?


How would enigma have worked differently if node validators or “whatever you wanna call them” got paid in eth for their work instead of ENG? Wouldn’t that have been a more viable option?


It wouldn’t work well, for the same reason Ethereum wouldn’t have succeeded if nodes were incentivized with Bitcoin.

If workers (that’s what we call them) were paid with ETH, it would have greatly increased our dependence on Ethereum, making us unable to meet our eventual goal to be blockchain agnostic. Perhaps more importantly, relying on Ethereum for transactions greatly limits the scalability of the system, and increases the associated costs. This is why in our roadmap we are planning to move from the Ethereum chain to our own, and migrate the token to a coin.

We have put a lot of work into scaling Enigma while being confined to Ethereum, but it’s a local optima, not a global one.

Finally, it’s harder to argue about security through incentives when these incentives are primarily connected to a different network. Using ENG creates a closed-loop ecosystem.