Ethereum Will Be 1,000 More Scalable in 18-24 Months: Joseph Lubin

Ethereum co-founder Joseph Lubin believes the Ethereum (ETH) platform, which is the world’s second largest cryptocurrency network, will become around 1,000x more scalable within the next 18 to 24 months.

According to Lubin, the Ethereum blockchain will be able to handle 1,000x more transactions during a given time period - after the set of upgrades associated with Ethereum 2.0 have been activated.

New Ethereum Clients Being Developed

Lubin, whose comments came during an interview with Cointelegraph on May 11th, 2019, said that the Ethereum 2.0 updates, also referred to as Serenity, have been divided into four different phases. At present, there are eight research and development (R&D) teams that are working on building new Ethereum clients, which will be used when Ethereum 2.0 goes live.

Commenting on Ethereum’s ongoing development, Lubin remarked: 

In a [few] 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 founder of Ethereum development studio, ConsenSys, mentioned that the blockchain network’s developers are working on various approaches which involve connecting the old Ethereum chain to the upgraded, or latest, chain.

Upcoming Upgrades Have Undergone Extensive Testing

According to Lubin, Ether tokens will be transferred from the existing Ethereum chain to the newer one (after Ethereum 2.0 activation) and that “there may be bidirectional mechanisms” used during the process.

Going on to address concerns related to network security (among other issues), when Ethereum transitions to proof-of-stake (PoS)-based consensus, Lubin noted that the planned PoS update has been subjected to extensive research and testing.

Currently, Ethereum’s developers are also working on integrating private transactions (as an option), Lubin revealed.

Ethereum PoS Testnet Now Available

On May 7th, 2019, Preston Van Loon, the co-founder of Prysmatic Labs (an organization focused on scaling the Ethereum protocol with sharding and PoS), confirmed that Ethereum 2.0 will feature significant improvements in security.

Preston also noted that Ethereum’s testnet is now publicly accessible and that there’s also a website, which provides guidance and detailed instructions on how users may stake their coins or tokens on the newly launched network.

However, recent reports indicate that staking, after Ethereum 2.0 related upgrades have been activated, will not yield significant profits.

As suggested in a proposal by Ethereum co-founder, Vitalik Buterin, transaction validators on the smart contract platform may receive 5% interest (per annum) on a minimum deposit of 32 ETH (appr. $6,173 at current prices). However, Ether miners may only earn around $41, or a 0.8% return on investment - after factoring in the costs of purchasing hardware equipment and electricity costs.

Wealthy Millennials Are Investing in Cryptocurrency, Research Shows

Neil Dennis

Cryptocurrencies are still fledgling assets and new research shows it is the youngest generation of investors that has the best understanding of the sector.

Research by British legal firm Michelmores LLP into affluent millennials - the generation born between 1981 and 1996 - with investable assets of £25,000 ($31,000) or more, shows that 20% have invested in cryptocurrecies such as bitcoin.

This far surpasses the national average of 3%, and even rises to 29% for millennials with more than £75,000 ($93,000) worth of investable assets.

Millennials also take their investments seriously - putting in their own research - and are more likely to engage with investment firms and exchanges electronically, with 35% saying they invested through digital and online platforms, while 27% said they consulted social trading platforms and e-communities of traders.

A Generation of Investors

Previous generations of young people have rarely earned reputations for prudence - more often in the past, they have been seen as profligate with scant regard for establishment ideas such as investment.

The research shows this view needs to be re-examines, as 70% of the 501 individuals interviewed for the study admitted that their wealth had come from salary or wages, while 40% was through returns on investment products. Andrew Oldland QC, senior partner at Michelmores, said:

There are many stereotypes attached to millennials – whether it’s that they spend their money frivolously or that they are overly reliant on the Bank of Mum and Dad long into adulthood. Our research challenges these myths, revealing that a significant portion of this generation who have £25,000 or more have amassed these assets themselves.

Millennial Wealth Growth

While Michelmores' research shows that millennials are saving and investing their way to wealth, it remains highly likely that large amounts of money will be passed down to this generation from parents in the baby-boomer generation.

Research published in July by digital investment firm Grayscale suggested investment in traditional assets such as gold will decrease in the coming years as the younger generations build portfolios with more digital assets in them.

Barry Silbert, chief executive of the asset management firm, said that over the next couple of decades around $68 trillion of investment in the US alone will be passed down the younger generations. He added:

To the millennial generation gold is seen as the establishment: it's the banks, it's old people. Bitcoin is young and innovative: it's a disruptor. It's an investment in vision and entrepreneurship.

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