Ethereum co-founder says ETH 1.0 will exist as a “shard” of 2.0, states protocol has a role in governance ๐จ This article is 5 years old...
Ethereum co-founder says ETH 1.0 will exist as a “shard” of 2.0, states protocol has a role in governance
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Updated: Feb. 24, 2024 at 7:38 pm UTC
Photo by Andreas Dress on Unsplash
Ethereum co-founder Vitalik Buterin believes the protocol might play an important role in the future of state-backed digital currencies. Presumably, his comments come after rising fears of global inflation and the Federal Reserveโs incessant money printing.
Political instability and Ethereumโs role
On May 7, Buterin spoke to Defiant founder Camila Russo in a podcast as part of the Ethereal digital summit. Others, including Changpeng Zhao, Michael Novogratz, Joseph Lubin, and a host of cryptocurrency thought leaders and entrepreneurs also spoke in different segments with other interviewers.
Buterin notes the ongoing pandemic and global emergencies dwarf prior financial crises, keeping in mind the levels of political disharmony and distrust between international superpowers, such as the U.S.-China trade war.
The 26-year-old thinks blockchain technology helps play a โneutral global playerโ role for current political and financial systems, creating a duly-maintained, interactive network of technology, currency, and assets that nation-states canโt topple.
Russo asked if ETH as a global currency was Buterinโs vision of what a unified world might include, with the latter agreeing, calling ETH the โglueโ of such an economy. The features of a decentralized and stateless network like Ethereum, he points out, can thrive in such times.
The shy, introverted Buterin cited rising concerns about oneโs privacy, widespread censorship, and [financial] institutions in general as factors that will lead the masses towards digital assets and decentralized technology.
Buterin believes the current crisis is partly financial and shares little with 2008โs financial tragedy. This time, he indicates, other โnon-financial problemsโ โ such as healthcare, unfair monetary aid, and partial policies โ create a litmus test for what cryptocurrencies and smart contracts may have to offer.
He stated:
โFor the first decade or so, it was really focused on the financial aspects โ censorship resistance of money. But here in 2020, weโre definitely seeing a lot of the same themes, but itโs somewhat less financial than before.โ
Confident about 2.0
Speaking on ETH 2.0 โ termed โSerenity“โ Buterin said the 1.0 version, โas it exists today,โ will function as an independent โshardโ on the update.
"Ethereum as it exists today (eth1) will be it's own separate shard on the eth2 network" – @VitalikButerin #EtherealVirtual
Fireside chat with Vitalik and @CamiRusso happening now!https://t.co/jYWpmWWEyp pic.twitter.com/Vnywj6o6YI
— Ethereal Summit (@EtherealSummit) May 7, 2020
Buterin noted different shards running various applications will communicate with each other asynchronously, adding โmany dApps and primitives transact this way and don’t require instant syncing.โ
When asked about the biggest risk in expanding the protocol, Buterin said technical challenges are a more significant concern than โcommunity or politicalโ setbacks.
Signing off, Buterin was confident about the transition from ETH 1.0 to 2.0, comparing the progress as similar to where Ethereum was a few months before its launch in 2015.
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In this article
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Vitalik Buterin stands as the pioneering force behind Ethereum, a transformative community-driven platform that fuels the cryptocurrency ether (ETH) and underpins a myriad of decentralized applications.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.
Joseph Lubin, a Canadian entrepreneur, has made significant strides in the world of blockchain and cryptocurrency.
Michael Edward Novogratz, born on November 26, 1964, stands out as an iconic figure in the financial realm.
Camila Russo is the Founder at The Defiant, a daily newsletter decrypting the intersection of blockchain and finance.