Ethereum's transition to the Proof-of-Stake algorithm may be delayed. What is the reason?
An Ethereum developer named Tim Beiko has posted several proposals and expectations regarding the upcoming merger, that is, the final transition of the cryptocurrency to the Proof-of-Stake (PoS) algorithm . In particular, it was about the interaction of other developers with the Eth network, who are engaged in third-party protocols and platforms based on the project. As for ordinary users, Beiko advised simply testing decentralized applications on the network after moving to Ethereum 2.0. Let's talk about what's happening in more detail.
Recall that the renewal of the Ethereum network is one of the main events in the cryptocurrency industry, among those planned for 2022. Thanks to the update, the blockchain will become not only more energy efficient, but also productive.
On the eve of the developers commented on the timing of the network update. According to the preliminary version, the update should be expected in August. However, they note that August is the ideal time to count on in the absence of any problems. Accordingly, in theory, the Ethereum team may not invest in the specified period of time.
And given the current comments, a version with a late update seems more than likely.
When to expect Ethereum on PoS?
Beiko urged users and developers to "pay attention and make sure everything is ready" for the event itself. Recall that a “merger” or the so-called merge is the moment when the current Ethereum chain based on the Proof-of-Work (PoW) consensus algorithm will merge with an alternative blockchain based on the Proof-of-Stake (PoS) algorithm. As we have already noted, the event itself should take place in August, that is, there are about three months left before it.
Before the final transition, the processes in the project network were tested in testnets - alternative chains designed specifically for testing without the need to spend real cryptocurrency. In general, after the merger, the likelihood of serious problems is very low, since "almost all changes will be made at the protocol level, and not at the application level," says Beiko.
According to sources from Cointelegraph , developers should be aware that there will be two significant changes to how smart contracts and the network work during the merger.
First, the method of randomness that makes applications work will change. This requirement is required to migrate to PoS and was published by the Ethereum Foundation (EF) last November. Secondly, the block time will be reduced from 13 to 12 seconds. As a result of this change, smart contracts that use block mining speed as a measure of time will run one second faster after the merge.
Beiko is confident that despite the delays in making the final transition to PoS, potential problems have been brought to a single level. Here is his retort.
Aside from cross-client testing and these two extreme cases, tooling and key infrastructure are at the greatest risk of failure.
If any other problems occur during testing, the merge will be delayed to ensure the security of the network.
At any point, if we find issues, we will certainly take the time to troubleshoot and resolve them before moving on. Only after that we will think about switching the network to Proof-of-Stake.
In other words, Ethereum has entered the “finish line” for an update that has been expected by the market for several years now. True, there may be new obstacles on this segment of the path, the elimination of which will require additional time. In addition, Beiko himself hinted that the Ethereum Foundation does not exclude the possibility of another postponement of the merger.
EIP-4345, announced at the end of 2021, is yet another evidence in favor of the quite possible transfer of the transfer of Ethereum to the Proof-of-Stake consensus algorithm. It involved the deposition of the so-called difficulty bomb, that is, a mechanism for increasing the difficulty of ETH mining and gradually slowing down the blockchain, which was originally created to speed up the transition to PoS.
So, in accordance with the proposal, the complexity bomb was proposed to be postponed until June 2022 with the possibility of further delay. Well, now we are talking about updating Ethereum at best in August, not June. That is, the delay with the update happened even now.
The decentralized finance (DeFi) industry, including Ethereum, may also soon receive new regulations. They were discussed at the annual meeting of the World Economic Forum. The Vice President of the European Parliament, Eva Kaili, during her speech at the event, said that projects in the DeFi sector are not truly decentralized, which is why they need appropriate regulation. Here is the expert's remark, which is provided by Cointelegraph .
We must have guarantees to understand who is the developer, who controls the project, who has access to private keys, whether someone can change the code or not, in what jurisdiction all this operates. We need to make sure we understand how it all works. This is not an easy task.
It is noteworthy that Kylie is a supporter of Bitcoin and decentralization. In one of her interviews, she stated that the blockchain provides tools to strengthen and improve existing financial systems through trust and stability.
We believe that it is hardly worth counting on the ideal timing for updating Ethereum, since the developers have been transferring the blockchain to a new consensus algorithm for several years. In addition, they themselves now admit that any bug will make them spend time correcting the situation, since huge sums of investors-blockchain users are at stake. Accordingly, they have no choice but to roll out the perfect product with an adequate security system - and this is time consuming.
In the meantime, we recommend mining ETH using video cards on the 2Miners pool. This is beneficial and profitable even for owners of one video card.
Post a Comment