The successful Ethereum transition project now raises questions about what is next for this commercially significant crypto.
The “Merge “project that successfully celebrated the software revision shifted the commercially significant blockchain platform from a proof-of-work concept to a proof-of-stake method and made the Network more secure and energy efficient. The common issues faced by Ethereum users, such as network speed and transaction cost, remained unchanged.
According to the co-founder of EPNS or Ethereum Push Notification Service, Mumbai-based Harsh Rajat, the upgradation of Ethereum without any downtime in the software was a brilliant engineering effort. He compared it to replacing the foundation of a Skyscraper while it remained standing.
Developers are now asking some key questions. The upgradation of Ethereum was the first step toward scalability. The trilemma between scalability, security, and development means the blockchain cannot simultaneously have all three aspects and must compromise on anyone.
The first step for Ethereum was to ensure that Merge moved to POS, and then there were four more development phases.
- The Surge – implementation of scaling solution that will lower bundled transaction costs on Ethereum
- The Verge – introduction of updates that will make Network more user-centric and allow them to become validators
- The Purge – Elimination of technical debt and historical data
- The Splurge – after completion of four stages, miscellaneous updates to ensure smooth function of the Ethereum network
The head of marketing at Biconomy, Aditya Khanduri, said that the ultimate objective is to make Ethereum faster, cheaper, and scalable.
Ethereum Network Congestion
Sameep Singhania, the co-founder of QuickSwap, a decentralized exchange, said it was difficult to predict the timeline of the four stages after Merge. The four stages are under research and development and may take 2-3 years for completion.
The Ethereum network will be able to process about 100,000 transactions per second after the five stages are completed, as per the co-founder of Ethereum, Vitalik Buterin.
Investors will now lock their digital token Ether in digital wallets and expect a return under the proof of stake format. However, they will be unable to withdraw them for the time being. The locked Ether will play an important role in the now upgraded Network, and the stacked Ether in the wallets will be used to help the Network to order transactions. Presently around 11% of ether tokens are locked via providers such as Coinbase Global, Lido, and Kraken or directly.
Ethereum will be required to undergo another upgrade in six months. The software change is named “Shanghai” and will enable users to withdraw their staked Ether, though the withdrawals will be capped.
Research Analyst with Messari, Kunal Goel, said the locked Ether would not be available for withdrawals after the Merge upgrade.
Ethereum developers are working on a new project called Proto DankSharding or EIP4844 that will reduce the network’s high transaction costs.
