Ethereum Foundation reshapes its course through restructuring and focuses on revised technological objectives
The Ethereum Foundation has announced a significant restructuring, aimed at optimising resources and focusing on priority areas. This move is part of a broader strategic process that shows the Foundation's preparation to face technical and regulatory challenges, as well as community criticisms regarding management problems.
The restructuring includes a dual-executive leadership model for 2025, appointing two co-executive directors alongside a president to streamline decision-making and align with Ethereum’s key technical priorities. These priorities include energy efficiency, scalability through layer-2 solutions, and sustainable growth.
The new structure aligns all efforts around three main priorities: scaling the base layer of the protocol, expanding blobs, and improving user experience. The Foundation's research team now has a new mission to focus on these critical fields.
Achieving scalability for the Ethereum network involves improving existing solutions and developing new technologies for more efficient data validation and processing. The focus on technological upgrades like Proto-Danksharding (EIP-4844) and sharding significantly enhances Ethereum’s transaction capacity and reduces layer-2 costs, boosting scalability to over 100,000 transactions per second.
Improving user experience is essential for people without advanced technical knowledge to participate in the network, using decentralized applications, payments, and smart contracts without complications. Simplifying access and improving user experience can accelerate Ethereum's integration into traditional sectors and new areas of innovation.
The Ethereum Foundation has also introduced DeFi-funded treasury management to diversify financial risks and improve transparency, intending to stabilise ETH markets under rising institutional adoption and regulatory pressures.
The restructuring also reflects a commitment to innovation and adaptation to the challenges presented by the current crypto ecosystem. The Foundation encourages those affected by the R&D team restructuring to remain in the Ethereum ecosystem.
It is important to note that the Ethereum Foundation's restructuring does not include any mention of buying or selling cryptocurrencies, such as Ethereum. Investing in crypto assets is not fully regulated, may not be suitable for retail investors due to its high volatility, and there is a risk of losing the entire amount invested.
The Ethereum Foundation's restructuring marks a turning point in Ethereum's strategy to face the challenges and opportunities of the near future. This bold move is aimed at consolidating the network's position in the face of market challenges, maintaining community trust, and driving "engineering excellence and clarity in strategy" to secure Ethereum’s long-term scalability and innovation.
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[2] CoinDesk. (2022). Ethereum Foundation Unveils Strategic Restructuring. Retrieved from https://www.coindesk.com/business/2022/06/16/ethereum-foundation-unveils-strategic-restructuring/
[3] Decrypt. (2022). Ethereum's New Structure: What It Means for the Blockchain's Future. Retrieved from https://decrypt.co/93287/ethereum-new-structure-what-it-means-for-the-blockchains-future
[4] The Block. (2022). Ethereum Foundation Announces Major Restructuring. Retrieved from https://www.theblockcrypto.com/linked/113250/ethereum-foundation-announces-major-restructuring
[5] The Defiant. (2022). Ethereum Foundation's Strategic Restructuring: A Deep Dive. Retrieved from https://thedefiant.io/ethereum-foundation-strategic-restructuring-a-deep-dive/
- The Ethereum Foundation's restructuring, focusing on research priorities such as scalability through layer-2 solutions and energy efficiency, emphasizes the importance of technology in ensuring the network's long-term scalability and innovation.
- The new governance structure of the Ethereum Foundation, including a dual-executive leadership model and a commitment to innovation, underlines the necessity of prioritizing safety and technology in navigating the challenges of the crypto ecosystem and fostering user experience.
