[UDC Report] Last Romanticist, waiting for Ethereum 2.0
[UDC2019 Report]-4 The pioneer of blockchain ecosystems is Satoshi Nakamoto. Ever since Satoshi created bitcoin, it became a catalyst to pursue decentralization. Still, the problem is that bitcoin had the properties of a digital asset but didn’t have the concept for service provision. At the beginning, no one could imagine an ecosystem where decentralized applications, or DApps, run on a decentralized network system. Vitalik Buterin, founder of ethereum, managed to solve that problem. Ethereum gained traction despite early challenges. It, however, faced trouble in terms of scalability. Become the source of blockchain challenges CryptoKitties, a DApp on the ethereum platform, was at the center of the controversy, which revealed the issue with gas, a fraction of an Ethereum token that is used to pay miners securing that transaction. The gas should be paid to miners at CryptoKitties and with the popularity of the game, fees also soared. At the time of the digital game’s launch, ethereum users also skyrocketed, which sent the ethereum network down. The incident raised the issue of scalability and dampened the reliability of decentralized system. Ethereum 2.0, dreams of a decentralized organization come true Even when the problem arose, the ethereum community stuck with the decentralized approach. Before the CryptoKitties event took place, Joseph Poon and Buterin suggested a project called Plasma. Plasma brought up the notion of improving the speed of ethereum transactions through the so-called sidechains. The sidechains handle routine transactions and regularly send a brief on transactions to the mainchain to restore scalability. In Korea, a company called Onther adopted the approach with its mission of providing the level of sidechains used on ethereum. Under the Plasma project, DApps can’t operate whereas Onther made it possible through a system called Ethereum Virtual Machine. The Korean company needed to devote more effort to settinging up the system, but it could become a major player in the sidechain space once Onther finishes its own project. Onther is on track to enhance its system through second layer and zero knowledge proof. Jung Soon-hyung, founder of Onther said that “Decentralized cryptocurrency exchange powered by zero knowledge proof zk-SNARKs ensures safe token trading since it is based on the zero knowledge proof and smart contract.” Still, the cost of maintaining the system could be higher. “The complex data system could be solved through a second layer.” With the contribution of players at home and abroad, the era of ethereum 2.0 will likely arrive next year. The improvement on scalability will likely be completed in the first phase. Ethereum 2.0 will mark the end of a series of projects over the past years. ※UDC 2019 videos and presentations can be found at https://udc.upbit.com/program/detailed_program, also the full report can be found at https://static.upbit.com/reports/udc2019_report_en.pdf. This report was sponsored by Upbit, and the information in it is based on the Upbit Developer Conference held at Grand Hyatt Incheon on Sept. 4 and 5.