Vitalik Speaks: Ethereum 2.0 Launch! (Part 1 of 3)
Vitalik Buterin spoke about plans for ETH 2.0
Ultra-high scalability will be one of the main advantages of ETH 2.0
Users asked what stage the development of the project is at
Experts have found real benefits and risks in the platform algorithm
Ethereum blockchain co-founder Vitalik Buterin shared plans for the development of the updated Ethereum 2.0 blockchain.
Ethereum’s bandwidth will increase
Vitalik Buterin, co-founder of the Ethereum blockchain, posted a series of tweets where he talked about the team’s plans to develop and implement the Ethereum 2.0 network upgrade.
The main achievement of the updated network will be its ultra-high scalability. In fact, the developers will fix the main problem of the blockchain. Ethereum remains congested today, causing gas charges to rise and transaction processing speeds to drop. More than half of all existing cryptocurrency projects and tokens are based on Ethereum, which significantly overloads the network. The update will remove restrictions on scalability, which means that gas prices should decrease.
As Vitalik Buterin noted, the throughput of the updated network will increase 6400 times.
“We now have ~ 15-45 TPS. Rollup packages provide a throughput increase of about 100 times. Sharding offers a magnification of about 64 times. These two indicators add up multiplicatively and provide an increase in throughput by ~ 6400 times (!!) ”, – wrote Buterin.
However, users did not take Buterin’s statements with enthusiasm. Many did not even understand what the co-founder of Ethereum wanted to say. So the user @Kale_abe wrote the following:
“Thank God bitcoin doesn’t have such a founder. Before this post, I considered myself an intelligent person, but now I doubt it, ”- said in the message.
Also, users did not understand at what stage the project is at the moment, judging by the roadmap. Many have suggested that the development of Ethereum is at the very beginning, which means that it will take a very long time to wait for changes. The user @das_grasshopper asked Buterin to clarify, so at what stage is the project.
The rest of the users began to make fun of Buterin’s statement that the updated version would be launched no earlier than 2050. Note that the launch of ETH 2.0 has already been postponed several times by the developers themselves..
Revolution or problem: what awaits the market
The launch of the updated Ethereum 2.0 network is scheduled for 2021. However, the opinions of users regarding this event were divided. Some believe that Ethereum 2.0 will be a real revolution in the financial market. Metacartel Ventures partner Adam Cochran carefully studied the economic potential of Ethereum and analyzed how the next version of the platform could change the course of events.
One of the possible reasons for the growth is that large investors known as “profitable farmers” can switch to Ethereum after the launch of a proof-of-stake algorithm. By virtue of their principles, this type of investor expects a stable rate of return in the region of 3-5%.
In the case of buying ETH in large volumes for similar or higher staking profits, the supply shock will drive prices up. According to Cochran, the price spike could lead to a second round of equity investments thanks to increased revenues. As a result, the fear of retail investors missing out on an opportunity would push markets even higher. Usually they are among the last to come into play, but their actions can activate the market, as it was in 2017.
Other users, on the other hand, are confident that Ethereum 2.0 carries real risks. For example, the betting program within the Ethereum system has not been fully thought out, and the algorithm for “freezing” funds on validators’ wallets actually limits the access of holders to their own assets. This could lead to security problems, reports Cointelegraph. According to experts, the betting system is difficult for users to understand, which means that it will cause many problems in the future..
The developers still have time to create a really worthwhile product, taking into account the wishes of the users themselves.
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