Cryptocurrency

Charles Hoskinson points out Ethereum’s Merge changes nothing

Zegex

Input Output CEO Charles Hoskinson He said the merger would not change anything in terms of performance, operating costs and liquidity.

After months of construction, the Ethereum merge took place on September 15th around 08:00 UTC. Vitalik Buterin This event is a landmark moment for Ethereum, and we are proud of the efforts of all involved in making it happen.

Merging refers to combining a Proof-of-Work (PoW) execution layer with a concurrently running Proof-of-Stake (PoS) beacon chain consensus layer, making the PoW chain obsolete. Proponents say the switch to PoS will make Ethereum more secure, scalable, and greener.

Merge is not Ethereum 2.0

Hoskinson commented, Twitter user He mocked him for saying that Ethereum 2.0 was likely to happen in 2024.

In response, IO bosses said ETH 2.0 refers to the final product and that merging is just one step to get there. .

Hoskinson said the merge would not improve Ethereum’s “performance, operating costs, or liquidity.”

The staked ETH is currently locked in the contract and cannot be withdrawn.of shanghai fork Allows validators to withdraw staked tokens.

Another milestone is surge. This adds sharding, reduces operational costs, and scales better. Edge, or implementation, of a “Verkle tree” (mathematical proof) to minimize data storage requirements. Purging to further reduce protocol storage history to improve data efficiency. And splurge on whatever is deemed “fun” enough to implement.

Proof of Stake Under Attack

PoS relies on validators rather than miners to validate transactions and secure the network. The current requirement to become an Ethereum validator is to stake 32 ETH. This would cost about $51,200 at today’s prices. That’s a lot of capital expenditure.

Critics argue that only properly funded entities can act as validators. Therefore, the switch to PoS will make the Ethereum network more centralized.

According to Nansen’s data, only five unknown entities, Lido, Coinbase, Kraken, and Binance, control 64% of staked ETH.

On the other hand, becoming a Cardano validator, also known as a Stake Pool Operator (SPO), has a much lower barrier to entry.there is No ADA pledge amount required, and the necessary hardware is available to most people. This encourages even smaller players to become network validators.

Some SPOs prefer to run virtual machines on cloud services such as Amazon Web Service because of the reliability of cloud service networks. However, this strategy increases running costs compared to private networks.

With the merge complete, Hoskinson expressed concern that PoS would now be seen as a highly centralized consensus mechanism, which is not the case with Cardano.

ethereum merge watch party

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button