2.0 upgrades will not make Ethereum a game changer

Ethereum may be the blockchain world’s darling, but it’s likely that the highly anticipated Eth2 won’t find wider adoption.

Ethereum 2.0 is tied to the so-called Messiah blockchain (savior) of Ethereum. However, this is not the case. The long-awaited changes are expected not to address the core issues that plague the network and hinder wider adoption.

Vitalik Buterin sees the staff who work with Ethereum as a bigger problem than the actual software, as he said in a recent interview. While the staff working on the project may or may not have problems, this is certainly not the only downside. It looks promising for a new deployment, the kind of software upgrade won’t solve the long-term problems that have brought the network to the heights Buterin and his staff once envisioned.

Main topics of Ethereum

Ethereum is currently running on a Proof-of-Work (PoW) system that only allows a maximum of 15 transactions per second – twice as much as the Bitcoin blockchain – and is seen by many as impractical for scaling any decentralized construction financing (DeFi) Ecosystem. Therefore, the gas fees at Ethereum are very high. Since very few transactions can be processed per second, the cost of speeding up the process becomes competitive. Research by Dune Analytics shows that 2-5% of transactions on Ethereum-based decentralized exchanges (DEXs) fail due to complications such as inadequate gas prices.

Another core problem with the Ethereum platform, but one that is often overlooked, is the poor user experience (UX) design. Therefore, average users who might be interested in participating in decentralized financial applications (DApps) or non-fungible token markets (NFTs) will avoid doing so, as most exchanges do give users the know-how to use the platform.

Users are expected to set transaction fees in gas prices and limit the gas used for transaction processing. However, how many users actually know this without studying cryptocurrency terms and information? Has insider intelligence report that 25% of adults in the United States don’t understand or don’t know how to invest in cryptocurrencies. How can a user without access to effective educational tools know if sending payments from two separate wallets to the same receiving address is causing a conflict? In all likelihood, the vast majority of normal users will not be aware of even minor issues like this one.

Ethereum 2.0

To address these long-standing issues, Ethereum’s custodians announced the launch of Eth2 as a series of upgrades over its existing model, including a move to Proof of Stake (PoS) and sharding. The PoS concept states that people can mine blocks and validate transactions based on how many coins they have. The Ethereum Foundation has announced that the transition to PoS should be completed by the end of 2021. As the Ethereum Foundation in a post In a recent blog, the power requirements remain unchanged from the old PoW system.

According to the Ethereum website, the sharding will probably take even longer and, according to the current Ethereum mainnet contracts with the Beacon Chain POS system, “the shard chain could start around 2022, depending on the work progress”. Sharding is the process of horizontally sharding a database to balance the load, reduce network congestion, and increase transactions per second. The shard chains are intended to give Ethereum more options to store and access data.

The new upgrades are said to be more environmentally conscious and to speed up the processing of transactions. In addition to these upgrades, the blockchain programming language is expected to change from the traditional Ethereum Virtual Machine (EVM) to one that can be adopted by developers using C ++ or Rust, making it easier to program right in the browser. While infrastructure upgrades can provide benefits in some areas, such as improved transaction processes, they still fail.

First, Ethereum 2.0 has been around for years and many users are wondering when the full upgrades will actually take place. PoS aims to reduce mining costs and energy consumption, but network throughput will only increase as block time decreases and / or block size increases. In addition, sharding only allows applications to run independently and only need to be synchronized occasionally. However, the inherently decentralized and open source nature of DeFi means that sharding has to execute transactions over a relay chain, thus slowing down the whole process.

More importantly, Ethereum is lagging behind in terms of user experience, which the introduction of the Eth2 upgrade did not fix. While Ethereum claims that it will release upgrades that address transaction speed and high gas fees to some extent, the platform shows a clear disregard for problems the solution of which will open the door for a large number of users currently unfriendly by Ethereum with its Interface.

Even if the upgrades are expected to roll out at some point, users will still struggle to set transaction fees for gas prices and gas limits for transaction processing. Outside of Ethereum, UX problems are not just reserved for Ethereum and often occur on other blockchains that use the EVM protocol, such as Binance Smart Chain (BSC) and Polygon. With other Ethereum-compatible chains using the EVM protocol suffering from similar UX issues, it is difficult to imagine a future where even EVM-based chains will really be accessible to ordinary users.

In addition to persistent problems with gas charge specifications, transactions have longer confirmation times, which often leads to delays, confirmation messages, and asynchronous sending of transactions. Often times, users do not receive confirmation immediately after the transaction, which leaves too much uncertainty as to whether the target recipient will receive the transaction. For users who are used to instant results on the web like ecommerce scenarios, this is a strange and frustrating user experience.

Ethereum may be the darling of the blockchain world, but at some point the hype won’t bear fruit and chances are the long-awaited upgrade won’t find widespread acceptance. It is not yet clear whether the expected changes can keep the promises made by the head of the Ethereum Foundation. Until Ethereum can solve some of the deeper problems, it’s unlikely that Eth2 will make any significant difference to anyone outside of the Ethereum enthusiast community. At the moment, Ethereum 2.0 is not a necessary game changer, but an aesthetic upgrade.

Mr. Teacher

According to Cointelegraph

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