Ethereum news: The network is moving away from being a slow giant to become a high-speed 'internet of value' by 2029 - CoinDesk

Ethereum, one of the leading blockchain networks, is on a transformative path to enhance its transaction speed and scalability, aiming to establish itself as a high-speed "internet of value" by 2029. This evolution comes as part of the network's ongoing upgrades and innovations designed to address its current limitations, such as slow transaction times and high fees, which have been significant barriers to broader adoption.

The Ethereum development community has laid out ambitious plans to implement various scaling solutions and protocol improvements. Among these initiatives is the continued transition from a proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS) model, which was completed in September 2022. This shift is expected to drastically reduce energy consumption and enhance the network's efficiency.

In addition to the PoS transition, Ethereum is exploring layer-2 scaling solutions, such as rollups, which allow transactions to be processed off-chain before being settled on the main Ethereum blockchain. This method not only increases throughput but also significantly lowers transaction costs, making the network more accessible to users and developers alike.

Ethereum's vision for 2029 includes the integration of these technologies, which will facilitate faster and cheaper transactions, supporting a variety of applications from decentralized finance (DeFi) to non-fungible tokens (NFTs). The focus is on creating an ecosystem where value can be transferred seamlessly and instantaneously, mirroring traditional financial systems but with the advantages of decentralization.

As Ethereum continues to evolve, the community is optimistic that these developments will position it as a cornerstone of the digital economy, enabling new business models and economic activities that were previously unfeasible due to scalability issues.

Key Takeaways

Ethereum is transitioning to a high-speed network by 2029, moving away from slow transaction times and high fees.
The network has adopted a proof-of-stake consensus mechanism to enhance efficiency and reduce energy consumption.
Layer-2 solutions like rollups are being implemented to improve transaction speed and lower costs.
The goal is to create a seamless "internet of value" that supports a wide array of decentralized applications.

This article was inspired by reporting from Google News Crypto. · Report an issue