Ethereum Refutes VDF Plans, Shares Intentions On How Funds Will Be Split Between Financial Partners

Ethereum Denies VDF Rumors

It had been reported that Ethereum has to make the transition to a proof-of-stake system and was to invest $15 million in the development of Verifiable Delay Functions (VDFs) which would aid this transition. However, Justin Drake, a member of the research team for Ethereum, has clarified that these rumors are false. While Ethereum will be switching to a PoS system, they have no intentions to spend $15 million.

“The EF Ethereum Foundation is not looking to spend $15m. We are looking to split funds 50/50 with Filecoin or other financial partners,” he said.

VDFs would be beneficial for Ethereum because it is designed to protect networks that make use of randomly generated values from possible attacks and hacks. In the case of a blockchain, a malicious user could take advantage of the random value by predicting the figures to the chosen, thereby manipulating the leaders and validators that will be selected through the protocol. Ethereum as a network has been very cautious about protecting its network from possible attack, particularly in light of the double spend attack they suffered on Ethereum Classic earlier this year.

Moving To A Better Future

According to the roadmap for the Ethereum Network, the switch to a PoS platform will take place during the Serenity upgrade, which is the fourth and last stage of the network launch. As of now, the network is in the third stage called Metropolis, which consist of two hard forks which are Byzantium and Constantinople. However, the Constantinople hard fork was recently postponed after some bugs were found in the system.

The Serenity stage is more than just the last stage in the Ethereum Network project but is also the stage by which many of the problems that currently plague the network will have been addressed such as scalability, mining centralization, economic finality, and security. The issue of scalability is particularly important as it was recently revealed that Ethereum only had 6 percent of the d’App market and one of the reasons given for this was its scalability problem which has pushed developers to other competing platforms such as EOS and TRON, who control and combined 94 percent of the d’App market.

By instituting these improvements in Serenity, Ethereum will be able to more aggressively compete in the d’App market and can capture a larger market share. On top of this, users will have access to new and improved features that will make their use of the platform easier.

Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) Price Analysis Watch (Feb 8th)

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Tokoni Uti
Tokoni Uti
Tokoni Uti is a Lagos-based writer with several years of experience. Her work has appeared in the Huffington Post, the Los Angeles Free Press and the San Diego Free press among others. She is a graduate of Bowen University.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,511FansLike
2,795FollowersFollow
4,273FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

DeFi Growth & Stablecoin Surge Most Bullish Crypto Development: DCG State of Crypto 2020 Survey

39% of the respondents that involve 150 portfolio companies see DeFi as the most bullish crypto development of 2020, as per the DCG Founders...

Non-Custodial Bitcoin Exchange, Hodl Hodl, Launches Lending Service Without KYC

Hodl Hodl, a non-custodial Bitcoin exchange, is launching a KYC-free lending product for its customers. The exchange claims that its lending product would be...

Total Value Locked in Harvest Finance Surpasses $1 Billion, Up 366,200% Since September

Decentralized platform Harvest Finance that provides users a way to farm assets for the highest yields now has more than a billion dollars in...

Strong Institutional Demand for Bitcoin, CME Becomes Second Largest BTC Futures Market

Bitcoin's price made a big shift this week as the bulls gained control of the market and pushed it past $13,000. A similar shift has...

PoolTogether's ‘No Loss' Gambling Platform Utilizes Chainlink’s VRF on Ethereum to Select Winners

Chainlink announces its verifiable random function on the Ethereum mainnet, bringing a host of benefits to the decentralized platform. PoolTogether, a gamified savings platform...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today