From PoW to PoS
Today, Ethereum transitioned from Proof of Work to Proof of Stake has been completed. That actually means that we currently have 2 layers in Ethereum:
- Eth1 or the execution layer where transaction and well... execution
- Eth2 or the consensus layer which handles the proof of stake consensus.
In any case, it changes... nothing. Sure, maybe it increases the speed to process transactions by 10% but that's pretty much it, besides the fact that it will be little bit more greener (as it does not use the ASICs to to compete for getting the blocks into the blockchain).
Overall, it does not solve the problem yet of high gas fees, or increase the throughput, so what's next for Ethereum?
Ethereum next phases
Sharding and Shard chains
Sharding is a scaling mechanism that will divide the network's transactions in different sets among different validators. This mechanism will allow to process and store transactions in parallel. And that, will increase the throughput for Ethereum.
eWASM
Ethereum flavor Web Assembly for the EVM. Web Assembly is a low level language that is normally used on the browser to use compiled programs. By changing this, smart contracts can start to be written in any language, not only solidity. This is interesting for any web developer as bring a lot of flexibility and could attract many many devs. Probably here, they will start to look into a different transaction fee system/model.
Continued improvement (or what I call the "we haven't figure this out yet")
On this point in time, the focus will be to keep working on continuous improvements for security, increasing scalability, etc. Probably more information will come with time, but it seems to be the maintainability phase of the project: fixing the things that were not planned or just put as technical debt in an old backlog pile. To me this is more like a hardening phase.
In Short
So yeah, for the short term nothing changes and this might be the reason why the market crashed a little bit with Ethereum, but on the long term, it looks really bullish.
Thanks for reading!
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(PS: Photo by Moose Photos: https://www.pexels.com/photo/round-gold-colored-ethereum-coin-1036637/ )
