The Ethereum Foundation has revealed in a blog post how they plan to budget $30 million in funds towards the development of major areas of Ethereum’s development, including Plasma and the much anticipated Ethereum 2.0 upgrade.
The post details how the Foundation’s focus has been changing as the Ethereum (ETH)ecosystem has been maturing,
As the ecosystem has matured, the Ethereum Foundation has refined its focus. ‘Doing what is best for Ethereum’ doesn’t mean trying to do everything — it means focusing on where we can add the most value, and leaving space for others to add value in the areas that they will be the most effective.
It then goes on to describe the role that the foundation has in furthering Ethereum’s growth – as a resource allocator, “a voice in the ecosystem” and an advocate for Ethereum.
With respect to the budget, the foundation has set aside $19 million for the development of later 2 scaling solution Plasma and Ethereum 2.0 upgrades over the next 12 months. Other priorities include smart contract languages, “Ethereum Phase 3 and beyond” and R&D, collaborating with academic institutions and researchers, among others.
$3 million has been earmarked for developer growth and awareness, focusing on attracting developer talent, educating them, supporting them with tools and organizing community event organization.
Ethereum 2.0 to Bring Big Changes
Ethereum 2.0 is shaping up to be a massive change for Ethereum and will usher in a new phase for the project.
Ethereum 2.0 is very much expected by the cryptocommunity. It is expected to bring several upgrades to the network, including a level of scaling that will support global use. Another highly important feature will be a switch to a Proof-of-Stake consensus mechanism. The whole bevy of change is expected to attract more investors and developers to a platform that will be more accessible, and user and developer-friendly.
Joseph Lubin, co-founder of Ethereum and founder of ConsenSys, has said that Ethereum 2.0 will make the network 1000 times more scalable in 2 years.
Ethereum 1.0 Problems
The above updates, some of which involve some code change that would need to be accepted by the community and in many cases exist as additional layers that sit on top of the existing network (or in the case of Serenity, simply a wholly new chain that exists alongside the current chain), are important because they address some fundamental and current problems with Ethereum.
- Scalability. The ability of Ethereum to be a world computer that handles financial transactions and hosts smart contracts and DApps without being unusably slow. Right now that is a problem. All the solutions above aside the proof-of-stake ones address this. <—- scalability is hands down Ethereum’s #1 sticking point right now.
- A solution for the difficulty bomb. There is a built in rule that forces developers to switch from proof-of-work mining to proof-of-stake over time by slowing down mining rewards by increasing difficulty. The lack of a solution is hanging over Ethereum’s head.
- Security. Security isn’t the main problem with Ethereum, but there are aspects of security that stand to be improved and its one of the things being worked on.