Key Takeaways
- Ethereum foundation generates $1.5 million from donations
- The list of donors include Uniswap and Kraken
- Ethereum 2.0 expected to switch Ethereum from Proof-of-Work to Proof-of-Stake
According to the statement released on Tuesday, the donations were majorly raised from six crypto firms.
This included popular DEX Uniswap, fiat to crypto exchange Kraken, Compound, and two other firms.
The funding is expected to be used to support core development teams that are working to achieve a seamless transition to Ethereum 2.0.
Several companies have been working on the technical aspects, and it is understood that five companies will receive this funding, including Ergin and Geth.
Ethereum 2.0 is one of the most highly expected projects within the blockchain space.
The beacon chain launched towards the end of 2020 to herald the start of the project. More than $1 billion ether is locked in the staking contract, and the Ethereum community has been supportive of the project.
Ethereum is the leading smart contract network but has been plagued with rising transaction costs and slow confirmation times.
This is attributed to its existing consensus algorithm based on the Proof-of-Work concept. This makes it difficult to scale the Ethereum network, which currently has a transaction speed (TPS) of 10-25 per second.
This is slower than traditional payment platforms like Visa, which has a TPS of 1000.
However, there are high expectations that switching to a Proof-of-Stake system will significantly reduce transaction costs.
New features will be added to the blockchain protocol, and the full launch date is expected to occur in the latter half of 2022.
Ethereum's most recent technical update was the London hard fork that occurred on August 5, 2021.
What are your thoughts on Ethereum 2.0
