A dozen of Blockchain companies including OmiseGo, Golem, Raiden among others has collaborated on ethereum Community Fund (ECF). Advised by ethereum co-founder Vitalik Buterin, ECF’s main focus would be on supporting the open-source ethereum infrastructure.
OmiseGo, Golem among dozen others to Collaborate on ECF
A number of Blockchain companies built on ethereum network have come together to collaborate on the Ethereum Community Fund (ECF). This new program will fund the growth of ethereum infrastructure by paying out about $100 million to potential projects in ethereum cryptocurrency space.
The ECF will be supported by Golem, OmiseGo, Global Brain Blockchain Labs, Maker, Raiden, and Cosmos. The project is also open to other companies to join and increase the fund size.
As per the announcement made by OmiseGo, Vitalik Buterin, ethereum co-founder and Ayako Miyaguchi, CEO of Ethereum foundation and Vansa Chatikavanij, MD of OmiseGo will support the project as advisors.
All the platforms that are built on ethereum network, shares the same issue i.e. scalability and by working and pooling their resources together, a universal solution could be provided to all the ethereum backed projects.
Primary focus: scaling Ethereum transaction capacity
The ECF website has mentioned the objective with:
“This program will be established as a permanent financial endowment to support and aid projects in building crucial open-source infrastructure, tooling, and applications.”
Though there is no clarity on the scope of the project, it will certainly be more than $100 million.
As for how the capital will be deployed, it will be awarded to those businesses and projects that can enrich the ethereum community instead of in exchange for tokens.
The primary focus of the fund is to enable the valuable techs in their infrastructure. These grants will also help in increasing the Ethereum transaction capacity, regarding which Buterin has shown concern in the past. According to the sources, the grant would range somewhere between $50,000-$500,000.
Talking about ECF, Buterin aid in a statement:
“Ethereum has grown beyond my expectations over the last few years, but the work is clearly not finished. Delivering value that matches the hype should be the mantra of 2018; efforts such as the ECF which help organize the development of the ecosystem are going to help to make that possible.”
Ethereum Foundation and Enterprise Ethereum Alliance
Last month, Ethereum Foundation reported that they would be setting aside a subsidy of about $1 m for those open-source teams that are working on the scalability issue. At that time the focus was on finding a solution for a “layer-two” approach and sharding.
This is not the first time that ethereum has taken a step to develop ethereum infrastructure. Last year, in February, the world’s largest open-source blockchain initiative was launched in the form of Enterprise Ethereum Alliance (EEA) that is in partnership with more than 200 organizations including Intel, MasterCard and JPMorgan.
What are your views on this big collaboration? Do you think it will give a boost to the Ethereum price and the collaborating parties like OmiseGo, and Golem etc.? Let us know below!
I am an associate content producer for the news section of Coingape. I have previously worked as a freelancer for numerous sites and have covered a dynamic range of topics from sports, finance to economics and politics.