 # An even simpler meta-execution environment for ETH

See Moving ETH between shards: the problem statement for the problem statement and A meta-execution environment for cross-shard ETH transfers for an earlier attempt.

### Solution

Every shard stores a map balances: (shard, EE) \rightarrow balance. The total “real balance” of some EE in some shard can be computed as:

real\_balance(shard, ee) = \sum_{i=0}^{shard\_count} shard[i].balances[s][x]

To perform any transfers of ETH between EEs in a block, the shard must contain a Merkle proof from the most recent state of every shard, showing shard[i].balances[s][x] for every shard i to prove the total balance of the EE. If a transfer between EEs is made on some shard s, transfering xfer_amount ETH from EE ee_1 to ee_2, then we check that the real_balance(s, ee_1) >= xfer_amount, and then set shard[s].balances[s][ee_1] -= xfer_amount and shard[s].balances[s][ee_2] += xfer_amount.

To perform a cross-shard transfer from shard s1 to shard s2, we set shard[s1].balances[s1][ee] -= xfer_amount and shard[s1].balances[s2][ee] += xfer_amount.

Note that invididual shard[s].balances[s][ee] values may sometimes be negative. For example, if the initial balances for some EE are {A: [1, 0, 0], B: [0, 0, 0], C: [0, 0, 0]} and then 1 ETH is transferred from shard A to shard B, and then soon transferred from shard B to shard C, the final balances would be {A: [0, 1, 0], B: [0, -1, 1], C: [0, 0, 0]}. However, the “real balance” \sum_{i=0}^{shard\_count} shard[i].balances[s][x] should always remain non-negative.

Under conditions of high usage, about the same overhead will be required as previous schemes (ie. ~20 kB per EE), though slightly lower because Merkle branches into bitfields will not be required. Also, if a block contains exclusively proofs within an EE, or if for every EE, ETH coming in equals ETH going out, proofs are not required. However, if there are unbalanced cross-EE transfers, then full proofs are required for any EE that has net-outgoing funds.

### Further improvements

EEs could have a “reserve” of funds saved on every shard (eg. 1 ETH per shard). If a particular EE has more outgoing than incoming transfers in a block, then that reserve would be reduced; full balance proofs would only be required when the reserve reaches zero. If an EE has more incoming than outgoing transfers, then the reserve would be increased.

A “zero capital overhead” alternative would be a system where shard[i].balances[j][ee] stores both the balance value and also the amount received minus amount spent in the most recent slot. A block in shard j spending amount X could avoid providing a full proof of all shards for some EE by providing some proofs from some other shards containing proofs of amounts available from the previous slot.

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Whenever shard[s].balances[s][ee] < xfer_amount, validators must fetch data from other shards to check real_balance(s, ee) >= xfer_amount. With that data at hand, they can be forced to process all ETH transfers to ee that they see so that shard[s].balances[s][ee] always remains non-negative for all shards.

Ideally, validators would only keep fetching shard[i].balances[s][ee] until the summation in real_balance(shard, ee) becomes greater than xfer_amount. To force them to process whatever ETH transfers they saw that led to this, they must fetch shard[i].balances[s][ee] in exactly the same order (hopefully seeded by some common randomness).