IMPORTANT POINTS:
- Ethereum’s Proto-Danksharding upgrade is expected to increase Ethereum’s scalability to levels comparable with centralized computing systems.
- Ethereum developers and its creator, Vitalik Buterin, are putting an emphasis on improving the privacy of the network.
- Increased privacy and scalability improvements are generating increasing interest from institutional investors in Ethereum.
Guy Turner, a presenter at Coin Bureau, has pointed to two factors that could serve as a catalyst for a potential bull run for Ethereum (ETH). In a recent video, Turner reveals to Coin Bureau’s 2.28 million subscribers that two upcoming milestones could skyrocket the price of ETH.
The first milestone, according to Turner, is the proto-danksharding update.
“The biggest upcoming milestone for Ethereum is the EIP-4844 update, known colloquially as proto-danksharding,” says Turner. The relevance of the proto-danksharding upgrade is that it will allow Ethereum to reach a level of scalability comparable to that of centralized computing systems. This will be achieved by addressing Ethereum’s main obstacle to scalability, data availability.
The proto-danksharding update solves this problem by allowing special data “blobs” to exist on the Ethereum blockchain. These blobs will make transaction data more available, which should increase Ethereum’s scalability, lower its fees, and increase the speed of its layer-2 transactions.
The second future milestone for Ethereum, according to Turner, is an effort to improve privacy.
In addition to the proto-danksharding update, it seems that the Ethereum developers have been hyper-focused on privacy. As Turner explains, “In January, Vitalik Buterin, the creator of Ethereum, wrote a blog post in which he referred to privacy as ‘one of the biggest remaining challenges’ in the Ethereum ecosystem, and proposed stealth addresses. as a solution.”
In April, privacy on Ethereum was back in the spotlight due to alleged privacy concerns related to ETH staking.
“Last month, Vitalik wrote another blog post in which he highlighted privacy as one of the ‘three transitions that Ethereum must implement or fail,’” Turner adds. The increasing focus on privacy is not surprising, given the high demand from institutional investors for this factor. And let’s remember that the Shappella update has increased institutional interest in ETH.
