Ethereum (ETH) Price Returns Above $3800 After the Statement by Vitalik Buterin

Ethereum (ETH) Price Returns Above $3800 After the Statement by Vitalik Buterin

Source: AP

Ethereum has gone green along with several altcoins and direct competitors like Internet Computer (ICP), Cosmos (ATOM), and Celo (CELO).

ETH reacted with growth to Buterin’s statement that the team had passed 50% of the way to develop Ethereum. The founder of the largest smart contract platform argues that in order to achieve maximum scalability and decentralization, “Ethereum needs to be more agile and more lightweight in terms of blockchain data so that more people can manage and use it “.

Buterin also repeated his own thesis that in the future all blockchains will merge, and block verification will take place in a decentralized and free of censorship manner.

Regarding the development of Ethereum to the ETH 2.0, Buterin noted 5 phases, which will lead to 100% optimization in six years, following one after another.

The Merge phase should be completed in the first half of 2022 and consists of a complete transition from Proof-of-Work to Proof-of-Stake consensus algorithm. The Surge phase will increase network scalability and performance. These two phases are the most important for the Ethereum development, Buterin said. Alongside the implementation of sharding, these phases will lead to the fact that 80% of the network optimization will be completed. They will be followed by the Verge, Purge, and Splurge phases. Verge will result in many users being able to run nodes. Buterin noted:

– [Verge means] democratizing access to the broadest number of participants possible to anyone and everyone who wants to verify the validity of the chain.

The Purge phase will eliminate the historical data. The Splurge phase means miscellaneous upgrades to be implemented. The Ethereum founder summarized his ideal plan with these words:

– Leave the past in the past and create an Ethereum that actually becomes simpler and simpler over time.

Buterin also said about the growing importance of security. Security will increase as the user base grows and bandwidth increases, he said. The idea is that “the more defenders will be able to run nodes and to verify that everything is going okay”.

While Buterin’s plan looks too ideal, it can be realized anyway. Meanwhile, the market players probably believe in its implementation, since the price of ETH began to rise smoothly after a month of decline.