Everyone wants to Support the Development of Ethereum 2.0
A great deal of funding has been provided from all sides for the leading smart contract network to support the development of Ethereum 2.0 and the great innovations they try to implement.
The Ethereum blockchain has undergone an update since December, where the new Ethereum 2.0 Protocol was introduced. In terms of finalizing various aspects of this upgrade, however, there is still quite a bit of work to be done.
Such an amazing update to the network cannot be done without any funds. It seems like the Ethereum community is aware of this problem and tries to do whatever is possible to support the development of Ethereum 2.0!
Kraken provides Funds to Support the Development of Ethereum 2.0
As one of the first exchange platforms to add ETH support when it was released in 2015, Kraken was one of the pioneers in this field. At present, it wants to support the development of Ethereum 2.0 through donations to fund the production of this ambitious update.
Kraken posts a statement announcing a $250,000 donation to support the development of Ethereum 2.0 to its blog just a few days ago:
As the first major exchange to support ETH trading, Kraken is proud to once again lead the way in supporting brave builders working hard at the forefront of crypto innovation.
Essentially, the funds were donated to the Ethereum Foundation, which is responsible for their distribution to development teams that are working on Ethereum 2.0 clients, such as Prysm, Lighthouse, Teku, Nimbus, as well as others.
This project is a follow-up to an initial contribution made by the exchange last March, as part of a decentralized grant program run by Gitcoin. Kraken distributed $150,000 to various projects that were working on the transition to Ethereum 2.0 at the time.
Who else provides Funds to Support the Development of Ethereum 2.0?
There is no doubt that Kraken is not the first entity that donates money in a process to fund the development of a blockchain with smart contracts.
As it turns out, Lido, Uniswap, Compound, Synthetix, and The Graph projects have also donated $250,000 to fund the transition to Ethereum 2.0. It was estimated that $1,5 million had been donated to support the development of Ethereum 2.0!
Ethereum Foundation uses the Funds for Customer Diversification
This funding will be used to encourage customer diversification into Ethereum 2.0, according to an announcement released the same day by the Ethereum Foundation. So, the money will be distributed to the following projects: Besu, Erigon, Get, Nethermind, and Nimbus.
This list does not include the Prysm client, which is not surprising. Approximately 50% of the nodes on the network were using the Prysm client in January 2021. Therefore, in order to improve the availability of other clients, it became necessary to allocate funds to other parties as a consequence.
The importance of diversifying the Ethereum clients is crucial to ensuring the stability of the network. There was a near disaster for the Ethereum network in November 2020 after a number of Ethereum service providers, including services like Infura, failed to update their Geth clients.
The Geth client is currently the default client on Ethereum 1.0. Unfortunately, this resulted in widespread paralysis of the network, which was fixed fairly quickly at the time.
The Ethereum 2.0 Update is on the way and will bring us many benefits. It will change the network and make transactions cheaper and more secure. Because we all want a stable network, it is crucial to support the development of Ethereum 2.0.
If you want to know more about Ethereum 2.0, follow this link to the official Ethereum Website!
What you do is up to you, but right now, we need to accumulate some ether to use when the time comes! Discover how to get your hands on Ethereum by checking out this guide.