The Most Fundamental Changes of Ethereum and Its Future

The Most Fundamental Changes of Ethereum and Its Future

Today we’re gonna talk about Ethereum. Lately, there was many news reports about its planned updates. We have to remember that it's a long-term plan, and we have to wait 3—4 years to see all these updates deployed on the mainnet, so now we have time to quietly analyze, what features will it have, how will it work.

What are the most fundamental changes, that Vitalik and his team plan to implement?
We can count them all:

All of them are important, but what does mean each of these terms? We'll start with PoS.

Proof-of-Stake (PoS)

Currently, Ethereum runs on Proof-of-Work algorithm. For starters, it’s the same consensus model, that is implemented in Bitcoin, where block mining depends on expensive hardware resources and requires large amounts of electricity. The biggest disadvantage — PoW systems can’t scale. Proof-of-Stake isn’t so resource-demanding, it depends only on the amount of tokens on validator’s account.

Switching to Proof-of-Stake allows to save energy and scale effectively, reducing the time between blocks and increasing the bandwidth of the Ethereum Network. After the update, Ethereum would be able to handle at least one hundred transactions per seconds, instead of 17, that we have now.

Upgrading Ethereum isn’t an easy task, because it’s actively used every day, the number of daily transactions now exceeds 500k, with the peak of 1.3 mil transactions on January 4, 2018. If something screws up, it’s not hard to imagine what would happen with the network, worth billions of dollars.
That’s why the major upgrade has to be tested carefully before the launch. This release is called Casper v2.0, it’s gonna be deployed in 2019—2021, and it’s gonna be crucial for another update, which is next in our list.

Sharding

Sharding heavily depends on PoS. To understand, why it’s not possible on PoW blockchain, let’s figure out, what’s this. Sharding is the technology, allowing to divide the whole network to many small pieces and divide the block validation between them. Thus, instead of 1000 nodes validating 10 transactions you could get 10 shards, each one containing 100 nodes, and validating its 10 transactions per second, which gives us 100 tps in total. It’s the same Ethereum chain, but the nodes are more effectively used. Why it’s impossible on PoW? Since a shard is much smaller than the whole network, attacking it, and gaining most the majority of computational hashpower requires fewer resources. PoW can’t restrict miners from applying their efforts to any chosen shard, so they can attack it anytime they want. At the same time, PoS Sharding algorithm regularly reshuffles validators, so malicious actors don’t have an opportunity to choose the shard, hence they are unable to concentrate their efforts on one weak point.

Sharding is a tough nut to crack, so it also might take a while, before Ethereum development team will roll it out. It should be released together with Casper or after it, in 2019—2020.

Plasma

Plasma is a Layer 2 solution. It allows infinite scalability, by creating child chains that don’t need to record every transaction on the main chain. It’s similar to already working Lightning Network on Bitcoin, which isn’t surprising, given that Joseph Poon, Lightning Network author, works on Plasma too. Plasma is capable to handle millions of transactions per second, because it doesn’t have the bottleneck problem — the state of Plasma chain can be settled on main chain once per 10 minutes, or once per hour, and it can use Sharding too, creating child chains on child chains, thus the scaling potential is pretty much infinite. The first project, using Plasma, will be OmiseGo, its developers. The Loom Network team also announced their intent to build their project on top of Plasma.

All these technologies are great, they are the foundation to build upon, and Ethereum community has many brilliant developers, so they would definitely like another technology, eWASM.

eWASM

It stands for Ethereum WebAssembly, and it’s a new, improved version of Ethereum Virtual Machine. Why is it important for Ethereum development? Current Ethereum Machine is a bit limited. It supports only its own language, Solidity, forcing Ethereum developers to learn a new language, which is also limited. eWASM will allow using multiple programming languages, making it more useful for developers. Most modern blockchains allow this, for example, Ethereum’s direct competitor, EOS, already has the support of multiple languages.

The network will greatly benefit from this new virtual machine.

The future for Ethereum

Currently, Ethereum has the largest community of developers. More than 1,906 decentralized applications are built on top of it. There is no sign that it may change in the future, it’s possible that Ethereum will hold the crown. All these updates will allow running unlimited amount of decentralized application, creating a new version of the Internet, Web 3.0. Ethereum doesn’t sacrifice decentralization for it, resorting to delegating Proof-of-Stake, which is easier to implement but lacks decentralization, that’s why it takes so long to develop it. But in the end, we’ll see how great it will benefit everyone in the long run. Corporations, governments — all of them are interested in implementing Ethereum-based solutions. And by the looks of it, a future where every major corporation uses Ethereum is pretty possible — if they succeed in scaling.

BTC

4,002 USD
-1.37%

ETH

135.90 USD
-3.03%

Related news

Ethereum Founder Vitalik Could Be Worth $100M+, Crypto Investor Speculates

Vitalik Still Owns $50 Million In Ethereum Crypto investors are curious folk. Almost every stakeholder wants to know who Satoshi really is. So, it should come as no surprise that some have delved into blockchain data to determine the net worth/asset value of some of this space’s leading figures. Alex Sunnarborg, who heads cryptocurrency hedge fund Tetras Capital, recently divulged a bit about the financial status of Vitalik Buterin, the creator of Ethereum. In a six-part thread, Sunnarborg did his utmost to analyze the publicly-known wallets of the Russian-Canadian coder. It was explained that per Etherscan, Buterin currently owns the keys to the 24th most valuable Ethereum (not counting ERC tokens) account. 1/ Some data on Vitalik’s ETH … pic.twitter.com/T6Cu16aAb8— Alex Sunnarborg (@alexsunnarborg) March 19, 2019 The wallet in question has custody of 350,003 Ether, 0.332% of the asset’s current circulating supply. At current valuations, such a cryptocurrency stash is valued at $50,000,000 by the market — evidently no small sum. 350,003 ETH is drastically less than the 500,000 coins he received during Ethereum’s genesis block, presumably for his work building the blockchain from the ground up. Sunnarborg speculates that the disparity between the Ether amount Buterin initially received and his current balance is due to a series of cash outs, which were purportedly completed between June 2017 and February 2018. The investor adds that these sales likely netted Vitalik approximately $40 million, which has likely funded Buterin’s little-known living habits. And with that, Sunnarborg concluded that Buterin’s finances can be broken down as follows: $50 million worth of Ether in primary address, $40 million in fiat reserves, and likely millions worth of Ether, ERC tokens, and project equity. Long story short, Buterin is doing rather well for himself. Bone To Pick With Ether? While Sunnarborg did not divulge his reasoning for issuing the aforementioned thread, some have speculated that he has a bit of a bone to pick with Ethereum. One Twitter user with the moniker “Yanay” asked if this thread was meant to shame Buterin, who has been rather closed about his private life throughout his seven or eight years in the industry. And in the eyes of some, this may be the case. In a recent Forbes interview, the Tetras Capital representative noted that recent layoffs at Consensus Systems, better known as ConsenSys, should have a negative effect on the broader Ethereum ecosystem. He added that the fact ConsenSys is an integral part of this subsector and underwent purportedly drastic staff cuts should have some worried. Generalizing DApps and products on the platform, Sunnarborg explained that many promising offerings have yet to launch, and the ones that have are “pretty difficult to use” and have little-to-zero active users. Case in point, the Tetras capital founding partner drew attention to the mere $40,000 currently staked on Augur, a multi-million dollar ICO. Thus, he claimed: “There’s this massive disconnect between how much money is still tied up in these projects and how much people actually use them.” Sunnarborg added that Ethereum may also become pressured by competition blockchains, like Dfinity or Polkadot, along with the fact that the chain’s development is losing momentum and steam. The post Ethereum Founder Vitalik Could Be Worth $100M+, Crypto Investor Speculates appeared first on Ethereum World News.
Ethereum World News

Prominent Analyst: Bitcoin (BTC) is Likely to Surge to 400k, Does This Mean the Bottom is in?

Bitcoin’s price action over the past year and a half has been quite the rollercoaster, with many investors incurring nearly instant wealth in late-2017, followed by tremendous losses for those who continued to hold their Bitcoin or other crypto investments. Despite this, those who held and are still holding are doing so either because of a fundamental belief in the technology, or at the very least a belief that the markets will eventually surge back to, or above, their previously established all-time-highs. That being said, recent comments from a prominent analyst about the potential Bitcoin’s price has to surge significantly higher will certainly be reassuring for embattled crypto investors who have been discouraged by the recent market conditions. Bitcoin (BTC) Drops to $4,000 as Support Level is at Risk of Being Broken At the time of writing, Bitcoin is trading down over 1% at its current price of $4,015, just a hair above its recently established support level at $4,000. Yesterday, Josh Rager, a popular cryptocurrency trader on Twitter, explained that the lack of buying pressure above $4,000 is likely to lead BTC’s price to $3,500, which may be reached soon if the crypto’s bulls are unable to keep Bitcoin’s price above $4,000. “$BTC Weekly Chart. Gandalf is holding $BTC below the mid $4,200 level. Bitcoin shall not pass the current resistance. So my target for the next drop has an aim at previous support near mid $3,500s,” he explained. $BTC Weekly Chart Gandalf is holding $BTC below the mid $4,200 level Bitcoin shall not pass the current resistance So my target for the next drop has an aim at previous support near mid $3,500s pic.twitter.com/BGUWMmAl4V — Josh Rager (@Josh_Rager) March 20, 2019 Naeem Aslam, the chief markets analyst at Think Markets U.K., recently spoke about the importance of the $4,000 level, noting that it will set the trend for which direction the markets head next. “Questions are being asked constantly when it comes to Bitcoin’s battle with the $4000 mark. The result of this battle sets the tone for a bullish or bearish trend,” he explained, further noting that this price level has become a “matter of death or life for crypto traders.” Could Bitcoin Surge to $400,000 Next? Although Bitcoin’s instability around its current price levels does seem to be significant in the short term, in the long term it may be very insignificant, as Aslam believes that BTC could eventually surge as high as $400k. “I personally believe that each Bitcoin can go up as much as $400K and if history repeats itself, this number is not a fool’s paradise. This is a simple math calculation: approximate percentage projection of the price which we experienced during the last bull run,” he bullishly explained. Keeping that in mind, for traders who are waiting to buy the bottom, the risk / reward ratio simply doesn’t make sense. Ryan Selkis, a popular figure within the crypto industry, spoke about the absurdity of trying to purchase a bottom when there is such a massive potential upside for BTC in a recent tweet. “I’d be extremely surprised if the bottom wasn’t in for this $BTC bear market. If you’ve been on the sidelines, what are you waiting for if not now? If you’re a long-term bull, the 5 year EV is 25-50x, and you’re going to wait to time an entry that’s 20% more attractive?” He noted. I'd be extremely surprised if the bottom wasn't in for this $BTC bear market. If you've been on the sidelines, what are you waiting for if not now? If you're a long-term bull, the 5 year EV is 25-50x, and you're going to wait to time an entry that's 20% more attractive? — Ryan Selkis (@twobitidiot) March 21, 2019 As the market’s price action continues to unfold, traders and investors should keep in mind the massive potential Bitcoin and the entire markets have to surge significantly higher in the next few years. Featured image from Shutterstock. Prominent Analyst: Bitcoin (BTC) is Likely to Surge to 400k, Does This Mean the Bottom is in? was last modified: March 21st, 2019 by Cole PetersenThe post Prominent Analyst: Bitcoin (BTC) is Likely to Surge to 400k, Does This Mean the Bottom is in? appeared first on NewsBTC.
NewsBTC

Hot news

By continuing to browse, you agree to the use of cookies. Read Privacy Policy to know more or withdraw your consent.