Joseph Lubin, the founder of Consensys and co-founder of Ethereum, addressed a large crowd at the Deconomy Conference in Seoul where he shared the stage along with Vitalik Buterin, an early Bitcoin proponent, Andreas Antonopoulos, and CEO of Binance, Changpang Zhao.
In his address, he described the bottlenecks faced by the current Blockchain and Cryptocurrency based projects in terms of their technical prowess. He went to clear more doubts about the Ethereum 2.0 update and how it will evolve into a Global Settlement Layer for transactions.
Ethereum Beacon Chain and Casper Proof of Stake (PoS)
Lubin emphasized on the fact that Proof of Work (PoW) provides a higher degree of decentralization than Proof of Work (PoW) based algorithms. This is because multiple nodes of Proof of Stake (PoS) can be established with a reduced initial ‘barrier to entry’ associated with setting up hardware and figuring out the profitability of the system.
Lubin noted that:
“Casper on the Ethereum Beacon chain is live on testnets now, and the 8 teams building their own implementations of the protocol should be in sync on a shared testnet within a small number of months.”
In Ethereum Beacon, each block is produced every in sixteen seconds. The Proof of Stake (PoS) is live with the test net on Ethereum Beacon chain and is termed as the ‘Casper’ Proof of Stake (PoS).
Ethereum Beacon chain is the backbone of the Ethereum 2.0 architecture. It will form the PoS design which will enable the stakeholders to validate the transactions and forge their stake for the work. Moreover, it will also support the secondary sharding chain that will be implemented later to improve the scalability of the entire system.
Weiss Ratings Says the Base Layer is Too Slow
However, Weiss Ratings highlighted the limitations that Ethereum’s initial PoW design puts on the scalability of the network. Weiss Rating noted on the comment that since the Ethereum main chain is substantially slow and faces scalability issues it will limit the development of Ethereum. According to them, the only path forward left for the Ethereum Network is to evolve into a global settlement layer instead of directly providing the platform for ‘smart contract’ and dapps execution.
Ethereum 2.0 PoS and sharding will be the framework that will support and settle these decentralized transactions. The execution engine will include the Ethereum Virtual Machine (EVM) and smart contracts which will be settled by the supporting chains.
Weiss ratings tweeted on 13th April:
Joseph Lubin, co-founder of
#Ethereum, says the network goal is to gradually evolve into a global settlement layer. Well, the base layer is so slow that there’s no other path forward for it. #ETH #altcoins #crypto
Do you think Ethereum 2.0 will evolve as the most progressive Decentralized Applications (Dapps) platform or the competition will take over? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com