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Founder of Former ConsenSys-Backed Startup Sues Joseph Lubin for $13M

The founder of Token Foundry is suing Ethereum co-founder Joseph Lubin for breach of contract.

The founder of ConsenSys-incubated startup Token Foundry, Harrison Hines, is suing Ethereum co-founder Joseph Lubin for breach of contract.

Per court documents filed with the Supreme Court of the State of New York County of New York, Hines has filed a lawsuit against Lubin in connection with “breach of contract, conversion, quantum meruit, unjust enrichment, fraud, declaratory judgment and unpaid profits arising from the defendants’ acts in connection with the business known as Token Foundry.”

Hines thus intends to collect over $13 million, wherein “the relief sought is monetary damages in the amount of $12,827,000 on the contract, quasi-contract and fraud claims plus $404,783 in unpaid profits.”

As Cointelegraph previously reported, anonymous sources stated that ConsenSys could lay off up to 60 percent of its staff as the blockchain space had become more competitive and “crowded,” last December. The company was reportedly spinning out startups it had previously backed, some of them without financial support.

Later in January, ConsenSys’ Executive Director of Enterprise and Social Impact Vanessa Grellet told Cointelegraph that the layoffs did not exceed 13% of staff. All teams at the firm were purportedly reevaluated including technical and non-technical staff.

In May, ConsenSys revealed that it was restructuring its various operations to shore up its market presence as it seeks $200 million in funding.

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Ethereum Co-Founder Criticizes Facebook’s Libra Token for Centralization

Ethereum co-founder Joseph Lubin said that Facebook’s Libra is “like a centralized wolf in a decentralized sheep’s clothing.”

Ethereum co-founder Joseph Lubin said that Facebook’s Libra token is like “a centralized wolf in a decentralized sheep’s clothing” in an article published on tech news outlet Quartz on June 21.

The social media giant released the white paper for a its cryptocurrency dubbed Libra earlier this month to mixed reviews from experts in the cryptocurrency and blockchain industries and concern from government regulators.

In his article, Lubin notes that Libra’s white paper describes feelings common among many in the cryptocurrency community. It states that “sending money across the globe should be as simple and inexpensive as sending a message on your phone,” and “financial infrastructure should be globally inclusive and governed as a public good.”

While noting the white paper’s claim that “People will increasingly trust decentralized forms of governance,” Lubin pointed out the need for users to trust Libra’s fiat currency and government bond backing, and merchants to trust that the network be responsibly run. Furthermore, Lubin also noted its centralized infrastructure:

“Perhaps most importantly, it requires our trust that Libra will eventually transition to a more ‘permissionless,’ decentralized system, whereby anyone can validate the network, rather than the restrictive member evaluation criteria keeping control in the hands of the initial 28 firms.”

Still, Lubin admits that he sees some good in the project. He says that in a few years there could be two billion Libra users, and cryptocurrency user experience (UX) could be vastly improved in the process:

“In one fell swoop, talented UX designers could reduce the current friction of using cryptocurrency. Managing private keys, understanding ‘gas payments,’ and installing crypto browser plugins could be as simple as pressing ‘send’ in WhatsApp, another Facebook-owned entity.”

Lubin also claims that developers at Ethereum-centric development company ConsenSys already analyzed the code and noticed that the project borrows a lot of ideas from Ethereum. Lastly, he notes that he expects Libra to be well-executed from a technical point of view.

As Cointelegraph reported yesterday, the governor of the Reserve Bank of Australia, Philip Lowe, cautioned that Facebook’s announced Libra currency may not attain mainstream usage in the near future.

Also, earlier this week a G7 taskforce was created to examine how central banks can regulate cryptocurrencies.

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Ethereum Has Already Scaled Quite Significantly: ConsenSys’ Joe Lubin

ConsenSys’ Joseph Lubin says Ethereum is already scaling and that Ethereum 2.0 is set to launch within two years.

Joseph Lubin could arguably be seen as a star at any blockchain event these days, but at the Ethereal Summit last month — organized by Ethereum-focused development company ConsenSys, which he co-founded — he was especially revered.

While inside the conference space, the co-founder of Ethereum was either listening intently to what was happening on stage or surrounded by a group of people between panels. Nevertheless, he found some time to speak with us during the two-day event.

So, on a sunny Saturday, we sat down on a quaint cast-iron bench in the garden area of the Brooklyn venue, Pioneer Works.

Lubin spoke about the current technical capacity of Ethereum and what awaits the ecosystem in the near future. Our conversation touched on scalability, consensus protocols and public vs. private blockchains for businesses looking to integrate the technology.

This interview has been edited and condensed.

Can Ethereum scale?

Olivia Capozzalo: Yesterday, Jing from Plasma Group spoke very enthusiastically about Ethereum’s ability to scale. Can you comment on that? Can Ethereum scale? And if so, what are the main developments right now in the ecosystem that are making that happen?

Joseph Lubin: So, I think the point, as she punctuated that panel quite brilliantly and entertainingly, was not so much about its ability to scale, it’s that it has already scaled quite significantly.

So, she’s part of the Plasma Group. It’s a group that is pioneering a class of different solutions for scalability. Essentially, recognizing that we have this base trust layer that can handle 15 to 27 transactions per second. And above that we have state channels of various different varieties in zk-STARKs and in zk-SNARKs and Truebit and Plasma.

And Plasma is this class of technologies that enable you to have less decentralized platforms sitting at layer two in the Ethereum ecosystem. They can benefit from the full trust in some cases — sometimes they benefit from partial trust — but if they’re linked in really rigorously, they can benefit from the full trust of the base trust layer, and you can get the best of both worlds.

Watch the full interview with Joe Lubin:

So, you get high transaction throughput per second, and you get the security of the base layer. And by that I mean, if you have a game and you brought your own network for your game or your exchange or some other application, if they have assets on your system, everybody using your system can be confident that, if you’re incompetent or if you’re corrupt, it doesn’t matter so much. It’s a pain in the butt, but they can still pull your value tokens back to safety and you’re not vulnerable. So, that’s happening.

So, I think we’re at many tens of thousands of decentralized transactions per second on the Ethereum network right now. And another point that I believe she was making, and that I think Ameen was making, is that we’ve got all this scalability for specific use cases.

So, we’re not reaching any limits soon with the base trust layer at 15 to 27 transactions per second, but the base trust layer within 18 to 24 months is going to multiply its capacity by about a thousand times.

That development is Serenity, or Ethereum 2.0. And Ethereum 2.0 is divided into four phases: three major phases — and in computer science terms, they’re numbered 0, 1 and 2. Phase 0 is getting close, it’s eight different groups that are building their own clients according to a specification that’s really very stable right now, a bunch of different testnets that each uses and there’s one testnet for everybody to come together.

So, within a small number of months, we should have a fully operational testnet and possibly by the end of this year, we’ll have a fully operational real Phase 0 Ethereum 2.0. So, good chance it’ll go live this year.

There’ll be different ways that it gets connected with Ethereum 1.0: ether tokens will move from Ethereum 1.0 to Ethereum 2.0, there may be bidirectional mechanisms, and there may be a way in the not too distant future to use the Beacon Chain, which is basically the Phase 0 proof-of-stake finalized blocks on Ethereum 1.0.

A proof-of-stake future

OC: Okay, so you mentioned proof-of-stake and I wanted to ask about another point from yesterday that was sort of contentious with the panel about proof-of-stake vs. proof-of-work. I know Ryan Selkis from Messari was sort of critiquing proof-of-stake.

JL: So, I don’t know that he was critiquing proof-of-stake. The question that was put to him about having a certain amount of money to invest in either Bitcoin or Ethereum 2.0. He said that he would put 80% or 100% on Bitcoin, because Ethereum 2.0 isn’t released yet. There’re still questions and he has children.

I don’t think he was fully discounting proof-of-stake, I think he just knows that it has been proven that proof-of-work works.

And so, if he was faced with the conservative decision of investing his child’s college fund, he would make the prudent choice. That is kind of the choice we made on the Ethereum project at the start, we intended to go proof-of-stake.

Unlike what was said on that panel, there are proof-of-stake systems that are working — different flavors of proof-of-stake systems. But we were aware of edge cases in all of the systems that were working at the time that could potentially take down a network.

Those systems weren’t incredibly valuable, and we figured that if the Ethereum network is incredibly valuable, then well-resourced actors would potentially exploit these vulnerabilities.

So, we knew we could make proof-of-work work, and the intention was to do that, do the research and get to the point where we were very confident in proof-of-stake — and that is done.

OC: Could you summarize why it’s so important to move to proof-of-stake?

JL: Proof-of-work is a mechanism that keeps all the different nodes of a network in sync. So, it’s a consensus formation mechanism. You get the trust characteristic from blockchain, from having all these nodes kept in sync.

Proof-of-work is one class of consensus algorithms — they all, essentially, find a leader and everybody follows in behind that leader. And this is a brand new one, it’s a decentralized mechanism where you don’t really elect a leader, the leader wins its role and wins the right to propose the next state of the system by showing everybody the next block that’s valid. Then, everybody validates that and crypto economics causes them to all fall into sync.

But proof-of-work, unfortunately, requires very expensive custom hardware, enormous amounts of electricity and wastes huge amounts of computation, and it benefits efficiencies of scale. So, if you’re a well-resourced actor, you can have an unfair advantage over someone running it on their game machine at home.

Proof-of-stake fixes all of that, proof-of-stake trades all that expense for a crypto-economic bond — essentially ether [ETH] — that you put into a smart contract on Ethereum. It burns orders of magnitude, less electricity, so you’ll be able to run it on your pad or phone at some point pretty soon, or some jewelry at some point in the not-too-distant future.

It doesn’t waste a lot of computation. It has very low barriers to entry, so my sister could do it or somebody could set up a warehouse, and my sister wouldn’t be disadvantaged compared to that warehouse — because, essentially, it’s probabilistic in terms of how much you’re called on to participate, depending on how much you’ve invested.

So, it’s a more secure system and a fairer system — more equitable. Because it’s based on probabilistically selecting validators for each new block, you can have a single validator pool for many different sharded blockchains. Right now, we have a single validator pool that keeps Ethereum’s blockchain secure, so all the validation power is focused on that one blockchain.

Split all that validation power into 1,024 different shards that would weaken all the different shards and people would notice that shard number 37 is really weak and these other shards would gang up and it would be madness. But from this one validator pool in Ethereum 2.0, groups are selected and randomly allocated to validate the different shards, so all the shards are secured equally and they’re all secured with the full validation power of the entire network.

Ethereum for enterprise

OC: I also wanted to touch on the debate between public and private blockchains. As we heard on another panel, representatives from EY and ConsenSys were both arguing for using Ethereum’s mainnet, a public blockchain, for large enterprises.

JL: We do a huge amount of work in our solutions group and we’ve built lots of enterprise blockchains, private permissioned blockchains for companies and for consortia, and banks and central banks. And you absolutely need to build the right architecture for each use case. There aren’t a lot of use cases on public blockchains right now that are appropriate for enterprise use cases, enterprise solutions.

One of [ConsenSys’] John Wolpert’s arguments is that Ethereum will be the base trust layer, the base settlement layer that many different sidechains and other technologies will link into. We’ve got a group called Aztec that built a protocol that enables obfuscation of transactions on the public Ethereum.

The Aztec protocol is super cool, and it will be live on public Ethereum pretty soon. That’s very similar to what Ernst & Young [EY] built, so [EY’s] Paul Brody described Nightfall, which also enables the shielding of public transactions on public blockchain.

Essentially, the public Ethereum isn’t fully ready for primetime — for all use cases — because it’s not scalable enough yet and because it doesn’t have sufficient privacy and confidentiality for all use cases yet.

We’re solving privacy and confidentiality by using private networks that can link into the public Ethereum or link into each other. We’re also solving it with those two protocols that I just described, so many different classes of transactions or use cases can now, or soon, be done on the public Ethereum. And we’re solving scalability via layer two and moving to Ethereum 2.0.

OC: Awesome, that’s really great. Thank you so much, really appreciate it.

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Hodler’s Digest, May 13–19: Top Stories, Price Movements, Quotes and FUD of the Week

Bitstamp processed a very large sell order, while Bakkt’s bitcoin futures should be tested in July.

Top Stories This Week

Coming every Sunday, the Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions, and much more — a week on Cointelegraph in one link.

Bitstamp Starts Investigation After Large BTC Sell Leads to $250 Million Liquidated on BitMEX

Major crypto exchange Bitstamp launched an investigation this week after a large bitcoin (BTC) sell order heavily impacted its order book. Bitstamp reported on the execution of the large bitcoin sell order from BTC to United States dollars, without specifying themselves the details of the transaction. Other crypto media noted that it involved a sell order that led to a liquidation of $250 million long positions on the BitMEX exchange with 5,000 BTC sold at $6,200, which further resulted in price declines on other crypto exchanges. Some crypto commentators suggested that the sell order could be made by mistake, with the order’s owner having meant to sell his/her bitcoin at $8,200 instead of $6,200.

Flexa Launches App Where Shoppers Can Spend Crypto at 15 Major U.S. Retailers

Payments startup Flexa unveiled an app this week that allows consumers to spend cryptocurrencies at major American retailers. The app, called Spedn, is currently set up to work with retailers including Barnes & Noble, Bed Bath & Beyond, GameStop, Lowe’s, Nordstrom, Office Depot and Whole Foods Market, with more stores to be added in the coming months. Stores that aren’t able to accept cryptocurrency will require the crypto to be instantly converted to fiat when an item is purchased. As of now, purchase on Spedn can be made with bitcoin, ether (ETH), bitcoin cash (BCH) as well as the gemini dollar (GUSD) stablecoin.

U.S. SEC Delays Decision on Bitwise Bitcoin ETF, Seeks Public Comment

The U.S. Securities and Exchange Commission (SEC) has again delayed its decision to approve or disapprove cryptocurrency index fund provider Bitwise Asset Management’s bitcoin (BTC) exchange-traded fund (ETF) application. In this week’s filing, the SEC also noted that it requested public comment from interested parties, asking for “written submissions of their views, data, and arguments with respect to the issues identified above, as well as any other concerns they may have with the proposal.” Bitwise had initially filed for an ETF in February, under the condition that the SEC would reach a decision in 45 days, with its application differing from others in that it draws prices from a variety of cryptocurrency exchanges, with the aim of better representing the market.

Bakkt to Roll Out First Bitcoin Futures Testing in July 2019

Institutional crypto exchange Bakkt plans to roll out testing for bitcoin futures trading in early July 2019, according to its CEO, Kelly Loeffler. Loeffler noted in a Medium post this week that Bakkt is working with both the Intercontinental Exchange (ICE) Futures U.S. exchange and ICE Clear U.S. clearing house to prepare the first testing of bitcoin futures trading and custody. In the announcement, Bakkt noted that it has been working with the U.S. Commodity Futures Trading Commission in order to be compliant with federal regulations, as well as to meet major requirements in terms of investors protection. Bakkt was first introduced in August 2018, with the stated goal of offering physically backed bitcoin futures.

EBay Denies Rumors It Will Start Accepting Crypto, Despite Advertising at Crypto Event

EBay has denied rumors after Blockchain Week that it is going to start accepting cryptocurrency as a payment method. Rumors have mounted that the online retail giant would be offering crypto as a payment option since ads were shown at crypto conference Consensus stating: “Virtual currency. It’s happening on eBay.” However, it does currently have a section marked Virtual Currency, where people can use traditional monetary forms to purchase crypto from sellers. In response to the rumors, an eBay spokesperson said that “cryptocurrency is not accepted as a form of payment on the eBay platform, nor is it part of our payments strategy.”

Winners and Losers

The top three altcoin gainers of the week are ultra coin, icechain and pwr coin. The top three altcoin losers of the week are segwit2x, blockport and sharpe platform token.

For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

Most Memorable Quotations

“The more interaction, and willingness that people want to engage with us, the happier we are because we want this to work. We want there to be innovation in these markets. We want there to be change.”

Amy Starr, chief of the office of capital markets trends at the U.S. SEC

“It is a useless currency, that’s what I believe. Look, I realize that people have different opinions, but to me, it’s garbage.”

Shark Tank’s Kevin O’Leary

“In a small number of months, we should have a fully operational testnet and possibly, by the end of this year we’ll have a fully operational phase 0 Ethereum 2.0.”

Joseph Lubin, Ethereum co-founder

“I believe that there are use cases that makes sense today, we have yet to find them at scale in financial services. We’re experimenting heavily, we have more patents than any other financial institution in the blockchain space, but have yet to find something that makes a difference for our clients or our customer.”

Catherine Bessant, chief technology officer at Bank of America

“There is a broad discussion in Washington around 5G being dominated by foreign firms and the U.S. being reliant on foreign technology and foreign expertise. […] With blockchain and crypto, I think there’s a recognition now that these will be part of our future infrastructure. […] It’s important both for national security and from an economic perspective, that the U.S. is a leader in that.”

Ryan Zagone, Ripple’s Director of Regulatory Relations

Prediction of the Week

Joseph Lubin on Ethereum 2.0: ETH to Become 1,000 Times More Scalable Within 24 Months

Joseph Lubin, Ethereum co-founder, said in an interview with Cointelegraph this week that the Ethereum blockchain will become about 1,000 times more scalable in 18 to 24 months. In the interview, Lubin noted that Ethereum 2.0, also called Serenity, will be responsible for bringing the drastic scalability increase to the ecosystem. The development, which Lubin noted is divided into four phases, already has eight groups developing clients for the new chain. He explained that there are several ways in which the new chain could be connected with the old one, noting “there may be bidirectional mechanisms” in moving ether (ETH) tokens from the old chain to the new chain.

FUD of the Week

Floyd Mayweather and DJ Khaled Escape Lawsuit Brought by Defrauded ICO Investors

High-profile boxer Floyd Mayweather and music producer DJ Khaled were dismissed this week from a lawsuit brought by investors in a fraudulent initial coin offering (ICO). The two celebrities had been involved in promoting Centra Tech’s ICO, and had originally been charged last November with unlawfully advertising the aforementioned ICO. This week, a judge ruled that the investors who had brought the legal action against the ICO had not proven that they had bought tokens as a direct result of the pair’s actions. In the settlement where neither of the parties admitted to nor denied the charges against them, Mayweather was fined more than $600,000, while Khaled was fined more than $150,000.

Tron Co-Founder and CTO Leaves Project, Alleging Excessive Centralization

Lucien Chen — the former chief technical officer and co-founder of blockchain protocol Tron — announced that he is leaving the project, citing an excessive centralization. In his announcement, Chen noted that in spite of the project’s success, irreconcilable contradictions between himself and co-founder Justin Sun have led him to choose to leave Tron. In the post, Chen noted that Tron is no longer staying true to its founding principle of decentralizing the web, critiquing Tron’s delegated proof-of-stake (DPoS) consensus mechanism and Super Representative governance and block production nodes.

Hacked New Zealand Exchange Cryptopia Appoints Liquidators, Trading Suspended

Hacked New Zealand-based cryptocurrency exchange Cryptopia said this week that trading was suspended and it was appointing liquidators. The exchange specifically said that it has appointed David Ruscoe and Russell Moore from consultancy and audit firm network Grant Thornton New Zealand as the aforementioned liquidators. In mid-January of this year, Cryptopia had said that it was the target of a security breach resulting in significant losses. According to the liquidators, the exchange decided to go into liquidation, as it has been unable to return the business to profitability, notwithstanding management’s reported efforts to reduce costs. The liquidators plan to conduct an investigation with the aim of securing assets for the benefit of the stakeholders.

Best Cointelegraph Features

Major Crypto Exchange in Korea Shut Down in April: 2018 Was a Nightmare for Most

Joseph Young explains what’s been happening with South Korean cryptocurrency exchanges, as they suffered through a freeze on accepting new registrations as well as the overall bear market.

What Crypto Exchanges Do to Comply With KYC, AML and CFT Regulations

Since most altcoins require crypto enthusiasts to purchase them via cryptocurrency exchanges, Cointelegraph takes a look at how these exchanges work with Anti-Money Laundering (AML), Know Your Customer (KYC) and Combating the Financing of Terrorism (CFT) regulations to ensure both safety and regulatory compliance.

Blockchain as Key to Vienna’s Digital Future — Interview with Ulrike Huemer, CIO of Vienna, Austria

Cointelegraph’s German division spoke with the chief information officer of Vienna’s digital future initiative about the ways the city can evolve to integrate more emerging technologies, including, of course, blockchain.

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Joe Lubin y Jimmy Song Formalize a Bet On the Future of DApps. Who Will Win?

After more than a year of discussions,  ConsenSYS
founder Joe Lubin and BTC evangelist Jimmy Song finally materialized a bet in
which the future of the DApps will determine the winner.

Joe Lubin Believes Dapps will revolutionize the World Wide Web
Joseph Lubin

The two famous crypto influencers talked face to face during Consensus 2019, which takes place from May 12 to 15. Coindesk’s mediator managed to put both of them in agreement on the terms of the bet.

According to the proposed terms, if Ethereum is successful
enough to have at least 15 applications with 10000 active users per day and
100000 active users per month for a period of 6 months and before May 23,
2023, Jimmy Song will send 69.74 BTC to Lubin. If the conditions are not met,
Lubin will pay Jimmy Song 810.8 ETH.

The price gap is large because they used the referential
price of each token during last year. The average amount in fiat was about
500,000 to 600,000 dollars in both cryptos, however, neither Song nor Lubin
wanted to renegotiate these amounts.

In order to guarantee transparency, they proposed an escrow
on which there was also an agreement, however; they did not reveal their name
because at the time of the interview this anonymous person had not yet
consulted on their willingness to fulfill this role.

The bet had been postponed several times because of
communication difficulties. Lubin expressed that this was a higher priority for
Song than for him, but he never refused to bet. The nonconformities arose at
the moment of determining what they could consider as an active user and
what defined a “successful” DApp.

Jimmy Song doesn't believe DApps have a future
Jimmy Song

Song wanted to define an active user as the person who paid for using the DApp, however, Lubin explained that this was unfair since there are many applications (such as Facebook) which are free to use. Finally, they agreed that the user did not have to carry out the transaction, as the DApp administrator could assume it (but there should always be an expense or tx in the blockchain).

The bet happened because Song doesn’t believe that DApps should exist. From his point of view, it is always easier and more efficient to develop a centralized application than a Dapp, and any DApp can achieve the same results using central servers. For this reason, he believes that over time these developments will disappear.

For his part, Lubin defends Ethereum and is sure that Dapps will revolutionize the way the world sees the world wide web. This idea is reinforced by the advances around Ethereum 2.0, a technology that promises to improve the efficiency of this blockchain considerably.

The full video of this agreement is available here

The post Joe Lubin y Jimmy Song Formalize a Bet On the Future of DApps. Who Will Win? appeared first on Ethereum World News.

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Ethereum Co-Founder: ETH Scalability Going Exponential Over Next 2 Years

Ethereum 2.0 Update Scalability 2019

Ethereum co-founder Joseph Lubin has made the claim that his currency will achieve an exponential increase in scalability over the coming years.

Speaking in an interview with CoinTelegraph, Lubin stated that ETH scalability–the most prominent issue to be addressed in the massive Ethereum 2.0 overhaul–will improve by 1,000 times in the next 18 to 24 months. Lubin highlighted the Ethereum 2.0 update, also codenamed Serenity, as the primary driver for the increase in scalability.

Despite the growing landscape for cryptocurrency, the majority of top coin projects such as Ethereum and Bitcoin still suffer from an inability to scale to levels necessary for mainstream adoption. ETH, in particular, is facing an issue of handling the load of mercantile transactions, in addition to other network features such as smart contracts and DApp developments. Ethereum 2.0 seeks to solve the issue of scalability–among a number of proposed solutions–by switching the currency from its historic Proof of Work algorithm to Proof of Stake. Through staking, the currency will utilize the resources of users pledging “staked” coins in order to improve the user experience and efficiency of the overall Ethereum network.

Lubin gave further updates on the development timeline for Ethereum 2.0, sharing his belief that the project will have an operational testnet in the coming months, with a Phase 0 launch to follow before the end of the year,

“In a small number of months, we should have a fully operational testnet and possibly, by the end of this year we’ll have a fully operational phase 0 Ethereum 2.0.”

The co-founder’s time-table for Ethereum 2.0 stands in stark contrast to comments made by Messari CEO Ryan Selkis, who claimed last week that the update would take much longer than what ETH devs are predicting. Rather than being completed by the end of next calendar year, Selkis predicted that Ethereum 2.0 would not be fully operational until 2021 at the earliest,

“I don’t expect Proof of Stake and Ethereum 2.0 to happen before the end of 2021 at the earliest.”

Lubin did shed some light on how Ethereum developers are planning to manage the currency’s transition without implementing a hard fork, which has been the traditional approach to massive coin overhauls. Rather than forking the blockchain into multiple currencies, Lubin claims that the new chain could be merged with the old, allowing tokens to move through “bidirectional mechanisms” onto the Proof of Stake platform.

Ethereum’s co-founder also defended the security of Proof of Stake, debating another point that was raised by Selkis. While Proof of Work has been rigorously tested as the algorithm of Bitcoin and other major cryptocurrencies, Proof of Stake has yet to be implemented on a similar level of scale. Lubin stated that PoS was thoroughly researched by teams prior to ETH devs making the decision to transition away from PoW, and claims that Etherum 2.0 will be adding new features to the blockchain to make it more compatible than previous iterations.

The post Ethereum Co-Founder: ETH Scalability Going Exponential Over Next 2 Years appeared first on Ethereum World News.

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Joseph Lubin on Ethereum 2.0: ETH to Become 1,000 Times More Scalable Within 24 Months

Ethereum co-founder Joseph Lubin said that the Ethereum blockchain will become about 1,000 times more scalable in 18 to 24 months.

Ethereum (ETH) co-founder Joseph Lubin said that the Ethereum blockchain will become about 1,000 times more scalable in 18 to 24 months. Lubin made his remarks during an interview with Cointelegraph on May 11.

Lubin specified that the development which will bring such a drastic scalability increase to the ecosystem will be Ethereum 2.0, also called Serenity. He explained that the development is divided into four phases and that eight groups are already developing clients for the new chain. Lubin also promised:

“In a small number of months, we should have a fully operational testnet and possibly, by the end of this year we’ll have a fully operational phase 0 Ethereum 2.0.”

Lubin explained that there are multiple ways in which the new chain could be connected with the old one, noting that ether tokens will be able to move from the old chain to the new one and that “there may be bidirectional mechanisms.”

Lubin also addressed concerns over proof-of-stake (PoS), stating that it has been thoroughly researched to assure its viability before the teams started working on its implementation. He said that new features are being added to the chain to make it compatible with more use cases, citing private transactions as an example.

As Cointelegraph reported earlier last week, the CEO of crypto analytics firm Messari had predicted that the Ethereum 2.0 transition will not take place until 2021.

Preston Van Loon, co-founder of sharding development firm Prysmatic Labs, also announced last week that an Ethereum 2.0 testnet beacon blockchain is now live.