The Ethereum blockchain is up for major enhancements in the wake of the recent transition from proof-of-work to proof-of-stake, revealed cofounder Vitalik Buterin. The transition called “The Merge” happened in 2022.
Buterin highlighted in a recent blog post how the new upgrades will aim for better accessibility, security and speed in the Ethereum network. The proposed changes in staking accessibility, block finality and network security are likely to improve Ethereum’s performance and user base, maintaining its lead as a blockchain platform.
Out of all the propositions, crypto enthusiasts are most upbeat about the single-slot finality implementation as it will reduce transaction confirmation time to 12 seconds from 15 minutes. This is slated to improve the network security and the user experience of the blockchain. Earlier in July, Buterin introduced this concept which gradually created a buzz in the Ethereum community.
Accessibility is another focal point of the proposed upgrades. Currently, users must stake 32 ETH (approximately $83,000 at current prices) to participate as validators. With new upgrades this will be reduced to 1 ETH threshold, making way for a wider participation as the staking process gets democratized. This fulfils Ethereum's agenda of decentralization and takes the control out of the hands of a selected few crypto entities.
The Ethereum cofounder has outlined several solutions to achieve this including the "Brute Force Approach" which will use advanced cryptographic techniques like zk-SNARKs to efficiently aggregate signatures from millions of validators. Alternatively, the introduction of "Orbit Committees" would randomly select smaller groups of validators to finalize transactions, reducing workload while maintaining economic finality.
For security enhancement, Buterin advocates a single secret leader election technique which will reduce Disruption of Service (DoS) attack risks. As this method doesn't reveal the block proposer's identity before the block is produced, it will be difficult for threat actors to target the crypto network.
The proposed upgrades are happening at a time when Ethereum's total value locked (TVL) occupies 60.29% of the total DeFi market, making it dominate the DeFi landscapes with $52.37 billion TVL.
However, competition from other blockchain platforms like Solana “the Ethereum killer” has increased in recent months as their active developers increased by 300% in 2023. Meanwhile, Cardano has been making strides with its smart contract capabilities, with over 8 million native assets minted on its blockchain as of September 2024.
If successfully implemented, these upgrades could address some of Ethereum's most pressing challenges, potentially leading to increased adoption and solidifying its position in the crypto ecosystem.