The Long-Term Plan for Ethereum Revealed

post image

According to Buterin, most major Ethereum network problems belong to the following categories: scalability, security, smart contracts, a consensus protocol, and confidentiality. Several network upgrades including the new Byzantium fork has provided solutions in four main areas. But, as Buterin has noted during the interview with South Korean media edition Joong Ang, it can take 2-5 years for a real solution to the scalability in the Ethereum network.

“I would say two to five, with early prototypes in one year. The various scaling solutions, including sharding, plasma and various state channel systems such as Raiden and Perun, are already quite well thought out, and development has already started. Raiden is the earliest one, and its developer preview release is out already,” said Buterin.

Development plan

As for scalability, Ethereum Foundation and developers community has made significant progress in open-source with the upcoming launch of the Casper test network and Plasma implementation to scale the second level solution designed by Buterin and Bitcoins Lightning Co-author Joseph Poon. Scalability is only achieved when a user does not have to verify every single transaction that is sent to the system.

Casper is a long-term scaling solution that uses a hybrid proof-of-work (PoW) and proof-of-stake (PoS) protocol in the Ethereum network. Currently, as Bitcoin, Ethereum network is based solely on the PoW consensus protocol to support the system and to verify transactions.

According to Christian Reitwiesner, the team head of Ethereum Solidity and Ethereum C ++ implementation solutions as PoS need to eliminate the workload of users, nodes and, dependence on the miners.

He wrote: “Scalability does not come from the fact that Blockchain is relieved from its load by creating a big number of smaller chains and moving the transactions there. Scalability is only achieved when a user does not have to verify every single transaction that is sent to the system.”

Structural Ethereum is different from Bitcoin because it works as a platform for decentralized applications (dapps). Therefore, Ethereum is in urgent need of a scalable network that can handle dapps with millions of users through PoS solutions such as Plasma.

To improve security measures of Ethereum network, the developers have integrated Zcash for the implementation of zk-SNARKs to allow anonymous and private transactions potentially.

Ethereum long-term price trend

JP Vergne, Ivey business school professor, noted in the study that the developer activity is the most accurate predictor of the price of the cryptocurrency. Vergne said: "We found that the best predictor of a cryptocurrency exchange rate is the amount of developers activity around it.”

Ethereum is the only public Blockchain network and the cryptocurrency in the market close to Bitcoin, regarding developers activity and, therefore, is subject to implementation of innovative solutions such as Casper, Plasma, sharding and zk-SNARKs, the price of Ethereum will likely grow through 2018.

Sharding concept will allow each node to store only part of the full network, while the nodes will be able to check the network through the basic mathematics and communication.

Mike Novogratz, the legend of hedge funds, billionaire, stated that he believes the price of ETH will increase three times by the end of 2018.

Ethereum is ready for more market growth in the coming months with the increase in the transactions volume, growing transaction speed and rise of scale use of technology.

Approved Coincheck & Scrutiny on DLT: Japan and China Move in Different Directions
Asian countries seem to go in different directions when it comes to the regulation of cryptos and blockchain. Two Asian tigers — Japan and China — show...
Tom Lee Stands By His $15,000 Bitcoin Prediction Despite Massive Fall
A few days ago Fundstrat’s research head Tom Lee predicted bitcoin’s price to spike to $15,000 by the end of the year once it passes the breakeven point....
Ripple Sold Two Times More XRP Coins in Q3 Than in Q2
Ripple is confidently making money. During the third quarter of 2018 Ripple Labs, Inc. gained two times more in sales of XRP coins than within the previous...
Blockchain Engineers Make As Much As AI Specialists
Engineers working in the blockchain domain are as demanded as those who work on artificial intelligence. Such a conclusion can be made from the statistics...
World Bank & Australian Bank to Launch The First Blockchain-Bond
The World Bank is getting ready for the first-ever blockchain-bond in the entire world. The cross-border financial entity has already given the authority...
Liechtenstein Bank Allows Its Clients to Invest In Bitcoin
Another crypto-friendly bank spotted! While most of the financial institutions over the world are trying to bar themselves from the cryptocurrency market,...
Bill Gates Accused Cryptos of People’s Deaths, Related to Drug Sells
One of the wealthiest people on the planet, Microsoft Corporation top patron and opinion leader on the sphere of technologies Bill Gates believes that cyber...
Buterin: DON'T Invest In Crypto More Than Ready To Lose
Ethereum founder Vitalik Buterin warned investors about the risks existing at the cryptocurrency market and advised them not to invest all their savings...
Thai Central Bank Required Banks To Stay Away From Cryptos
Asian crypto market might not be having the best time of its existence in view of regional governments curbing on the use of bitcoin and its brethren. ...
Mezzo Virus Threatens Cryptowallets
"Kaspersky Lab" revealed a new financial threat - the Trojan Mezzo, which can replace the details in the files of exchange between accounting and banking...
The Major Bank in Japan to Launch Own Crypto Exchange and Coin
Not likewise in South Korea or China, cryptocurrency trading is a bandwagon in Japan. Recently the country’s major bank Mitsubishi UFJ Financial Group Inc...
Investing in Crypto Is a Good Opportunity for Millennials
The cryptocurrency market can turn out to be exactly what it takes to attract millennials to tradingThis opinion was expressed on the CNBC by a chief analyst...
Hold It Or Take Profits? VC, Early Bitcoin Investor Knows The Answer
Bitcoin has demonstrated quite a significant growth for itself in 2017, soaring up by around 1,400% between January and mid-December. Currently, the king...
Will Ethereum Overtake Bitcoin?
Satoshi Nakamoto created Bitcoin over eight years ago, and there is no cryptocurrency, which can exceed it. But Ethereum changed everything. Today, many...
Philippines to Expand the Use of Bitcoin
As Bitcoin keeps increasing in price (its rate has nearly doubled to USD 10.3 per coin within last month, according to Coindesk.com), some countries’ regulators...