The Road to Ethereum 2.0

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Ethereum co-founder Vitalik Buterin outlined the next major steps of the multi-step upgrade schedule of the Ethereum network.

In a recent podcast hosted by Bankless, Vitalik Buterin commented on the current state of Ethereum and the Ethereum Foundation’s plans to support the blockchain’s transition to ETH 2.0. Following up on his article titled “Endgame”, Buterin claims that the next major step is the merge, where the Ethereum blockchain will fully transition from proof-of-work (mining) to proof-of-stake (staking) which is expected in the first half of 2022. Following the merge is the “surge”, which will increase Ethereum’s scalability and transaction throughput to accommodate a larger user base.

Ethereum has been subject to many valid criticisms over the past year as more and more users enter the cryptocurrency space. “Gas fees” have surged throughout 2021 due to overall network congestion and increased usage. Data from Messari Analytics shows that the average fee per transaction on Ethereum was consistently over $40 for most of Q3 and Q4 2021.

A major part of this congestion is the overall explosion of the NFT market. According to The Block Research, the trading volume of non-fungible tokens (NFTs) has surpassed $13 billion in the year 2021, a 42,988% increase compared to 2020 NFT trading volumes.

Buterin is not oblivious to the criticisms relayed to the project, admitting that “Ethereum is not yet the layer-one system that is ready for direct mass adoption.” While he has recognized the need for layer-two scaling solutions and reduced transaction fees, the Ethereum co-founder acknowledged the “amazing progress” Ethereum has seen so far in its 7 year existence and how the community is “willing to continue fighting for it.”