New Ethereum Roadmap — ETH Focus point, Scalability Possibilities And Network advancement

Vitalik Buterin, the co-founder of the Ethereum network, has laid out the roadmap for the Ethereum ecosystem. In a detailed post, Buterin highlighted a strategic approach to boost scalability, security, and finality for the Ethereum Layer 2 solutions.

Buterin remains committed to Ethereum’s vision to maintain decentralization, a core principle meant to be upheld even as he establishes the need for a switch from a single-proof to a multi-proof method. 

The 2-of-3 model, a core part of the outlined framework, is a system that relies on multiple proof formats, including the zero-knowledge (ZK) proof, the optimistic proof, and the execution environment proof. 

Instead of total dependency on the single-proof system, transactions can be initiated and completed, given that two out of the three proofs reach an agreement. Security breaches are thus reduced, speed is simultaneously optimized, and the network continues to maintain its decentralized nature. 

As a market researcher explained;

“This means that the finality of rollups can be as fast as zk proving (~<1hr for now) while protecting the system from soundness bugs in the zk system.” 

Stage 2 rollups, another focus point on the roadmap, are designed to increase confirmation rates and ensure high finality and lower failure rates. 

Ethereum’s Q1 performance: liquidity scares and low monthly returns

While the new development signals continued network growth for Ethereum, market sentiments amongst investors are largely bearish. 

For one, long- and short-term Ethereum holders are raising concerns about the liquidity risks associated with accumulating Ethereum (ETH). Nearly $240 million worth of ETH tokens is owned by large whales on the MakerDAO and could be liquidated in the coming days or weeks. 

Additionally, monthly returns observed in the year’s first quarter are at a record low. According to data from Coinglass, monthly returns for January, February, and March are -1.28 %, -31.95%, and -17.28%, respectively. After losing 56% of its value within the first 90 days of the year, ETH trades at a press time price of $1,800.