Ethereum is now one step closer to becoming an energy-efficient, secure and scalable network. On Thursday, ConsenSys researcher Mikhail Kalinin created a pull request for the EIP-3675 proposal on Github, setting in motion the network’s transition to a proof-of-stake consensus. The EIP will also be tabled for discussion at Friday’s upcoming Core Devs meeting by Ethereum foundation developer Tim Beiko.
Kalinin’s pull request indicates a formalization of the EIP-3675 as an improvement proposal, which would merge the Ethereum and Eth2 chains. Once the network moves away from the energy-intensive proof-of-work model, stakeholders will have more power to validate transactions and create new blocks.
The idea behind Eth2 is to make Ethereum faster for transactions while reducing the skyrocketing gas prices. The network is often criticized for congestion since it struggles to process over 15 transactions in a second. With DeFi platforms rising in popularity, every new transaction adds to the network’s existing strain and inflates the gas fees. So far in 2021, some single-digit transactions have incurred as much as triple-digit fees in dollars. Clearly, Ethereum must address these issues or it risks losing its foothold in the decentralized finance space.
Danny Ryan, a researcher at Ethereum Foundation and the lead coordinator for Eth2 stated that EIP-3675 was just one of many requisites to ensure the network’s readiness for transition.
For now, Ethereum is gearing up for its London hard fork upgrade in August, which comes with the highly-anticipated EIP-1559 proposal that reduces the supply of ETH. Meanwhile, ETH 2.0 is also scheduled to undergo its first upgrade, known as Altair, which seeks to make some changes to the partially functional network.
Since the launch of Beacon Chain in December 2020, Ethereum 2.0 has been growing in terms of staking. Currently, it is the second-largest PoS network by staked capitalization with $12.7 billion worth of Ether locked into it.