The Ethereum blockchain was released in July 2015 and has since grown to become the largest blockchain, in terms of DeFi solutions, and the most popular blockchain for smart contracts. The total number of dApps on the Ethereum blockchain is over 3,000, with many more on the way.
Despite the increase in the number of transactions, which is of course a good thing, it has led to a number of problems, such as exponentially increasing gas fees and slower processing speeds. The need for scalability has led to the proposed upgrade to 2.0, which is expected to improve the user experience all around with a boost in transaction fees. However, ETH 2.0 is taking a little longer than expected.
Co-founder of Ethereum, Vitalik Buterin, has expressed his concerns regarding the delays to the ETH 2.0 roadmap. Speaking at the Virtual Fintech Forum in Hong Kong, he provided insights into some of the challenges facing the company. According to him, the majority of the difficulties being faced are not technological, but rather stem from internal conflicts.
The upgraded version is in development, but may still be some way off. When asked about the delay, Buterin had this to say: “We thought it would take one year to do the proof-of-stake, but it takes six years. If you are doing a complex thing that you think will take a while, it’s very likely to take a lot more time.”
Both chains are expected to merge later this year, or in early 2022. The merger will see the swap of proof-of-work mechanisms with proof-of-stake. The boom in layer 2 scaling solutions will see priority in the market shift to a proof-of-stake model. According to Buterin, Ethereum has become a victim of its own success, for the reason that the number of DeFi solutions on the network has reduced speed and increased network fees.
ETH 2.0 is a much-needed upgrade for the Ethereum network. As it stands, the network can execute about 15-45 transactions per second, but this number is not sufficient to service Ethereum’s massive, worldwide user base.
As Ethereum nodes continue to experience high volumes, the upgrade to 2.0 will make the blockchain faster, more secure, and scalable. The developers aim to make use of “sharding,” which will create 64 new chains on the network, thereby increasing efficiency.
The new shard chains will increase the network’s transaction capacity to 10,000 transactions per second. ETH 2.0 will also see a move to more economical mining mechanics; proof-of-stake will cut down energy usage by over 99%, making ETH 2.0 perfect for both the developer and its users.
Originally published at DailyCoin
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