How many coins will be needed for the node? How many programmers at the Ethereum Foundation? How many billions have been collected in the ICO? How many companies are united by the Alliance created for the introduction of the blockchain of Ether into the business and how many – in similar alliances? The number of developers using the Ether and Solidity programming language. Comparison with TRON, EOS, Cardano, Binance, IOTA: budgets, teams, the number of running decentralized applications, speeds, plans and realities.

Ethereum spent the ICO in 2014 and collected $ 18 million. Token cost about 31 cents. At the peak reached $ 1,400.

In total there are 107 million coins, inflation is also present at 3.4% per annum. The total number is unlimited. It should be noted that after switching to proof of the steak, inflation can be reduced and theoretically could become negative, since the gas will be burned.

ETH brought blockchain technology to the next level of development. It made it possible to create invulnerable applications, and by this I mean the program code, after the launch of which – it cannot be stopped. Since the code is executed on the blockchain, that is, simultaneously on many thousands of computers. It is impossible to simply turn it off, there is no censorship, the government – no one who is able to stop the execution of the Ether code.

The development takes place on Solidity, which was created specifically for Ethereum. To date, there are more than 2,000 applications working there, and they are a leader in this regard. Interestingly, one of the founders, in addition to Vitalik Buterin, was Charles Hoskinson, who now heads Cardano. In general, many of the first engineers who worked on the creation of Ethereum, went into some of their development. These are very talented people, they could significantly speed up development if they had stayed. In addition to Vitalik Buterin, they have a lot of knowledgeable experienced programmers, developers who put maximum effort and work every day to improve.

Most of the glory came to Ethereum due to ICO. Through this mechanism, $ 14 billion of investment in various projects has been raised. In many ways, thanks to ICO, the cryptocurrency was in the spotlight of speculators from around the world. Thus, ETH gave impetus to the development of the industry, new money came as existing projects and cryptocurrencies, and new – with new breakthrough ideas. More programmers began to devote their career to blockchain technology. Its introduction into business processes is growing.

More and more companies around the world call this the number one priority, in connection with this, Ether created an association, the goal of which is to introduce the ETH blockchain into the business. It is called the Ethereum Network and in 2019 it has 250 companies. Of course they have competitors, first of all it is R3 with its own – Corda. They number 200 companies. The second very significant competitor is IBM with its Hyperledger, there are about 190 participants.

Of course, these associations are trying to set the business on their blockchain. Although the solution offered by R3 and IBM is technically and financially superior to Ether. But, unlike its competitors, Ethereum offers a public blockchain, which does not depend on anyone and this is very important. If you, as a company, transfer your business processes to someone’s private blockchain. Subsequently, he will dictate to you the condition, but if you use the public – no one is above you.

In addition to major competitors like R3 and IBM, there are also others, naturally, which involve the launch of smart contracts and decentralized applications. Let’s see how things are going with speed. Ethereum – bandwidth approximately 15-25 transactions per second. Next comes Cardano – 250 per second, IOTA – 1,500, BNB – there are no specific exact data, but they say that there are more than several thousand. The founders of BNB say they can scale horizontally and, if necessary, can increase this bandwidth at any time.

We also know that many projects that originally started on the Ether are now being transferred to BNB. Then there is a TRON from 2000 to 4000 transactions per second, then EOS – about 4000 and IOST – they claim that the network bandwidth is 8000 transactions per second, although in practice we have seen about 1000 so far.

Today, the risk from Cardano and IOTA is quite theoretical, since they are still at the embryo stage and nothing concrete has been launched on the blockchain. Others are already working. And in terms of technical characteristics, they are many times higher than Ether.

EOS today is the leader in the number of active users of decentralized applications running on its blockchain. The risk from alternative development is real, it exists. Of course, ETH developers also understand this issue and work on it.

Today there are 7 teams – about 90 people.

Let’s consider what can be implemented to speed up the Ether. One solution is State Rent. The problem is that a lot of garbage has accumulated in the virtual machine itself and it increases in size, which slows down its operation accordingly. There is an offer to charge for data storage. As long as you pay – they are there, as soon as you don’t pay – they are removed, thereby reducing its size and speed. The problem with this proposal is that it has few supporters. Taking a storage fee in a virtual machine will ultimately make the work even more expensive. This is an additional cost that no one wants to take.

Another possible option is Storage Prunning. There is a constant accumulation of old data, the blockchain grows by about 100 GB annually and this solution implies a permanent reduction of it, that is, to cut off the old, unnecessary. In theory, it can increase speed by 10 times. Now there is only a theoretical proposal, but there are no concrete steps to its execution.

There is another opportunity to speed up – replacing virtual machines with Ethereum Flavored Assebly. What will it give? This is a more effective interaction with the hardware on which this software will work. In addition to this, it will be possible to use other programming languages. For now, programmers are required to use Solidity. In the future, they will be able to learn other more popular languages. It is in active development and is already running on the Kovan nete test.

In parallel with the Ethereum developers themselves, others are also working – they launched their ICOs, but they work with the second level on the blockchain of Ether. Among their developments: Plasma, co-author of which was Vitalik Buterin himself and thanks to this  the speed can reach 1000 transactions per second.

Today appeared many varieties of the introduction of this technology, all of them are focused on solving some of their problems. So far, no revolutionary results have been achieved.

There are also such projects as: State Channel, Payment Channel, ZK-STARKs. This is a second level solution that can make ETH faster. When will all this be done and will the Ether blockchain finally become fast? We all look forward to Ethereum 2.0. This is an upgrade called Serenity. The most important chip will be the transition to the Proof of Stake. This will reduce energy costs, increase speed and decentralization.

This is a big update that is divided into several parts and they will be released gradually. The first phase is called the Beacon Chain. Here we will see the transition to proof of the steak and, in order to participate in the network, that is, to confirm transactions and create blocks, you will need 32 Ethers. These coins will be frozen in the form of a guarantor, and if someone decides to behave not according to the rules, the guarantor will be burned. At least these are the plans. Perhaps this will all change, but now it is so. These measures will make possible attacks on the Ethereum blockchain very expensive. This upgrade is scheduled for 2019, but clearly earlier than the end of 2019, it is definitely not worth the wait.

The next stage will be the launch of Shard Chains.

This is the sensational Charding, through which it will be possible to process transactions in parallel. In theory, it should increase the capacity by a thousand times. If now 25 transactions per second, then theoretically it could be 25.000 per second. It is important to note that while this is still a theory. The update is scheduled for 2020.

For 2021, Ethereum plans to migrate from a virtual machine to eWASM. This is the replacement of which I wrote above. This model will allow better use of the resources of iron on which the virtual machine will work, as well as allow the use of additional programming languages.

After 21 years in the year 22 and beyond, further work is planned on the security of Ether and further centralization. In other words, according to the developers, this transition to version 2.0 will take about 2 years. But as we all know these lines, almost all projects are broken, especially in Ethereum. There are always some circumstances that prevent the release of upgrades on time and they are usually very late. That is, the figure of two years can be safely multiplied by two. Most likely within 4 years, Ethereum will release its second version.

At POS, we will move much earlier, but it will not give such a strong increase in speed. The speed will increase significantly after starting Sharding. They are working on it, but this is clearly not going to happen this year. Or even I very much doubt that this will happen in the twentieth year.

Let’s summarize a little and consider the disadvantages and advantages of Ether today. And so one of the downsides is the relatively modest financing of the project. After its ICO, the Ethereum Foundation transferred to Fiat less money than was necessary. Then the price of bitcoin fell 4 times. That is, the same mistake was actually made, which ICO launched in 2017 repeated after them, most of them did not fix the money that they collected in the form of cryptocurrency, did not transfer them to some kind of stable or Fiat and accordingly lost most of the money that investors gave them.

In total, the Ethereum Foundation allocated grants in the amount of about $ 8 million for development.

Of course, if we compare it with the sums that we allocate, suppose the same Block. one for the development of EOS, then it is 1 billion dollars. These are not comparable numbers at all. TRON is also very active in allocating large sums of money for its development. That is a lot of competitors and they have a lot of money! This is also important to understand and not to forget about it. Another disadvantage is the slow progress of development with chronic delays. There are several reasons for this. First, there is a lack of funding.

In the Ethereum Foundation, the money runs out and they simply do not have the money to hire 500 developers who would work around the clock to solve problems. They have several small groups that are working on the solution of the tasks set, but again, these groups are rather fragmented. Some work on one solution and others on another, that is, they do not work together. It also slows down the process. Of course, there are advantages to the fact that they can think about solving one problem from two sides and some of these solutions will be correct. But on the other hand, it significantly slows down the development of the entire project, as a result, competitors move faster.

Projects such as TRON, EOS, Binance – they have centralized control and in terms of speed of development, quick decision making – of course, the centralized model is faster. There, people do not work waddlingly, over them are managers who, control them, that is – a normal capitalist company, where if you are slow you just get fired. Therefore, the pace of development of centralized projects is much faster.

Now the pros. Ether, today, is the leader in the number of decentralized applications running on its blockchain. Today it is more than 2000. The next plus is the decentralized blockchain, which consists of more than 6000 nodes. Competitive types such as EOS, Binance and others, they of course can develop faster, but they can not boast of decentralization.

This is quite a centralized solution, and where there is centralization, there is censorship, in the first place. Secondly, if for some reason the authorities of this country, where the office of this company is located, will have any complaints against them, they may come to arrest all accounts and turn off all servers on which the whole blockchain works. Theoretically this is possible. It is impossible to turn off all servers supported by the Ethereum blockchain. This is more than 6000 servers scattered throughout the world.

The community of developers on the Ether has tens of thousands of people.

That is, these are not the people who are trying to improve the blockchain itself. They are familiar with Solidity and are ready to build on it. According to the developers, the difficulty is not to learn Solidity, because it is a new language. Although it, of course, in turn, is based on some existing languages, that is, it is not so difficult for a programmer to understand and start work on it.

The difficulty lies generally in building these smart contracts and working on the blockchain. Therefore, complexity is relevant not only for developers on the Ether blockchain, but also relevant for all other blockchains – all other competitors. Even if they use some widely used programming languages.

Today it is the second  world cryptocurrency in terms of importance and recognizability.  

Thanks to the Ether – the cryptocurrency market received these new cash injections during the ICO. Another plus, of course, at the moment is still a little distant – these are attractive technical characteristics of version 2.0, that is, it will be gradually launched: Proof of Stake, Sharding. This will initially work in parallel with the current blockchain, which uses Proof of Work, but they will be able to communicate with each other and then as soon as the new version becomes stable enough, the whole system switches to it. That is, there will be such a transition period.

The transition may take about 2 years. But there are usually delays, especially in Ether. Accordingly, about 4 years. This is a huge period, therein lies a big risk, where competitors would be in four years. The same EOS, TRON, IOST, BNB and other projects where would they be? Cardano, where would  they be? All of them do not sit back – they work, and are already on the POS. They already have 2,000 to 4,000 transactions per second. Where would  they be in 4 years? This is of course a question the answer to which we do not know, but clearly there would be a progress.

That is, the Ether will already need to compete not with the current technical characteristics of these projects, but with those that would  be in 4 years. Of course, we hope that this time, as an exception, the developers would meet the deadline – about 2 years, but of course you can’t count on it.

In my opinion, what will save Ether?

Even moving at such a slow pace compared to competitors. This is his publicity and decentralization.

In principle, in comparison with others, this is the only decentralized, public blockchain. Everything else is essentially private companies that have private blockchains and give us the opportunity to play the tokens that they released on their blockchain. But at any moment, they can cover up everything. This applies to most competitors of Ether. In general, these are my thoughts on the blockchain of Ether. I suppose that in the future he will remain one of the leaders, largely due to the publicity of its blockchain.

It is very interesting to know your opinion. Maybe I forgot something, did not mention something – write in the comments.

1,020 total views, 1 views today

9 thoughts on “Ethereum 2.0 Serenity – transition to Proof of Stake”

  1. А, что там уже вроде готово по обновлению Стамбул? Кто то знает?

  2. I always used to study piece of writing in news papers but now as I am a user of internet thus from now I
    am using net for articles, thanks to web.

  3. In the first half of the week it is possible to exit the side range to the nearest support levels.

  4. An error in the code of the Internal BitMEX Bitcoin Exchange system for mass emails has resulted in the disclosure of user email addresses.

  5. This is my first time pay a visit at here and i am really pleassant to read all
    at single place.

  6. Hello mates, pleasant article and fastidious arguments commented at this place, I am really enjoying by these.

  7. Usually I don’t learn post on blogs, but I wish to say that
    this write-up very pressured me to take a look at and do it!
    Your writing taste has been amazed me. Thank you, quite nice post.

Leave a Reply

Your email address will not be published. Required fields are marked *