Thousands of ethers (ETH) distributed by the Ethereum Foundation – Decentralization on the move


Ethereum pushed by millions of dollars – Ethereum (ETH) is on track for a major update via “The Merge”. As a reminder, this will mark the merger of Ethereum 1.0 and Ethereum 2.0, with the transition to proof of stake (PoS). A large-scale project that the Ethereum Foundation will support with a new grant program.

$ 153 million to fund Ethereum

Ethereum is a project open source. Therefore, the software used by the nodes of the network is developed by independent teams.

On Monday, December 13, the Ethereum Foundation has announcement the creation of “Client Incentive Program”, aimed at supporting the development teams of Ethereum customers.

In total, the Foundation will allocate $ 153 million to the different teams. In practice, this subsidy will be paid in the form of 4,608 ETH to a certain number of teams, in order to create 144 validator nodes. The income generated by the validator nodes will cover part of the development costs.

In total, 9 different teams will benefit from this grant, namely:

  • Besu;
  • Erigon;
  • Go-ethereum (geth);
  • Lighthouse;
  • Lodestar (50% stake);
  • Nethermind;
  • Nimbus;
  • Prysm;
  • Teku.

The Ethereum Foundation launched this initiative with the aim of increasing the customer diversification.

“Customer diversity is essential to the health and decentralization of the Ethereum network. Diversity ensures that innovation continues at the base layer of the protocol, that the network is resilient to potential attacks or bugs, and that a wide range of participants are committed to discussing potential changes to the protocol. basic. “

Ethereum Foundation Announcement

In fact, these 144 validator nodes will allow teams to generate 45 ETH, is around $ 177,000 monthly, depending on current economic conditions.

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The importance of diversification for the Foundation

The diversification of customers is an important issue for blockchain ecosystems. Indeed, it is important that the majority of nodes use different clients to ensure the stability network as well as its decentralization.

Too much centralization can lead to network outages. Indeed, if the majority customer were to present a bug, as has already been the case in the past with Ethereum, the entire network could be affected, or even completely paralyzed.

The Ethereum network, as we know it, faces this diversification problem. So the big majority of nodes use the client geth.

Ethereum faces a diversification problem.  The vast majority of nodes use the geth client.
Breakdown of clients on Ethereum – Source: Ethernodes

Unfortunately, the Ethereum 2.0 beacon chain presents a similar centralization around the customer Prysm. A situation that it is extremely important to evolve towards greater decentralization before the merger with Ethereum 1.0.

The Ethereum 2.0 beacon chain presents a similar centralization around the Prysm client.  A situation that it is extremely important to evolve towards greater decentralization before the merger with Ethereum 1.0.
Breakdown of clients on Ethereum 2.0 – Source: NodeWatch

For its part, the Ethereum 1.0 network has just deployed its latest update via the hard fork Arrow Glacier. As a reminder, this aims to postpone the difficulty bomb which should increase the difficulty of mining in anticipation of the switch to PoS.

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