Arsablog

Why does Ethereum need more compatibility?

چرا اتریوم به سازگاری بیشتر نیاز دارد؟

Ethereum is a popular blockchain that has been used in various sectors and projects. Due to the success that Ethereum has achieved, many developers and projects are using this chain to build their own protocols and products. Now that Ethereum is in the spotlight and many users are using it, the complex is on the verge of important changes.

Some believe that Ethereum’s success has caused it many problems; An event that should not have happened. Blockchain, like Ethereum, should have moved forward with as much strength as possible and should not have been involved in marginal issues. Despite this, optimizing the network and solving existing problems has become one of the main priorities of the Ethereum network development team.

Chris Jones (Chris Jones) in an article From the Cointelegraph website, from a different point of view, it has examined topics such as the popularity of Ethereum and the advantages and disadvantages of this network. He discusses why Ethereum needs more compatibility to solve its problems. To learn about these problems and their solutions, follow us until the end of this article.

Why is Ethereum a popular DeFi platform?

Popular Ethereum DeFi

Almost most of the important applications of digital currencies are in the field of decentralized finance or DeFi (DeFi), and Ethereum is definitely known as the shining star of the blockchain and DeFi world. While Bitcoin has maintained its momentum, Vitalik Buterin’s invention continues to thrive. Based on Report Consensys magazine in July, Ethereum unique addresses reached 161 million. This amount shows a growth of 10% compared to the end of the first quarter of 2021. The total locked value (TVL) of the Ethereum network’s proof-of-stake ecosystem also reached $146 billion in August.

The world of digital currencies is indebted to the Ethereum network due to the existence of smart contracts. Because with such technology, the use of decentralized finance has become possible for users. Although Bitcoin is the most famous digital currency in the world, this currency is only considered a decentralized digital asset and its main function, like other currencies, is a tool for exchanges (Medium Exchange), unit account (Unit Account) and store of value (Store of Value). This pioneering asset focuses solely on its core role and does so with unmatched transparency and security.

On the other hand, smart contracts and Ethereum have a different story; Because they have been able to bring blockchain technology applications to other levels. Smart contracts allow users to determine their desired conditions and rules for the transfer of value-based assets. Therefore, the performance of Ethereum can be considered beyond the transfer of value-oriented assets. In smart contracts, it is possible to include detailed conditions for each contract. This feature has made it possible to provide a host of various blockchain-based financial services.

In the following, we mention only a few examples of said services:

  • Lending
  • Decentralized insurance
  • Decentralized exchanges
  • Stablecoins
  • Cultivation of profit
  • shareholding
  • Computer games (betting)
  • Non-Fact Tokens (NFT)

Why does Ethereum need improvement?

Without detailed rules about the transfer of value, which is currently only done with smart contracts, it is impossible to do anything different with digital currencies. Therefore, it is smart contracts that allow us to combine payment and value transfer processes with things like computer games and insurance or certain digital assets like stablecoins or non-traditional tokens.

Read more: What is a non-fungible token or NFT?

Some use the interpretation that Ethereum is a victim of its own success; But this mentality does not seem to be correct when looking at the achievements of this network.

More than five years have passed since the Ethereum network; But there are still concerns about the network’s speed, costs, and environmental impact. The initial algorithm of this network will change from Proof of Work (PoW) to Proof of Stake (PoS), which is more environmentally friendly. However, the full implementation of the next generation of Ethereum, or Ethereum 2.0, is planned for 2022.

This network not only faces the problem of slow transactions and high transaction fees; But it is also struggling with problems such as the limitation of its ecosystem. This will ultimately prevent new development environments such as WebAssembly or Wasm from entering Ethereum. Perhaps this problem can be related to the nature and inflexible architecture of this network for making smart contracts.

what’s the solution?

The solution to this problem is clear: use Newer technologies! Fortunately, in today’s world, the speed of emerging new and amazing technologies has increased so much that a solution can be found for almost any problem. WebAssembly is one of these technologies that can solve some of the problems of the Ethereum network.

WebAssembly

Web assembly

Web Assembly (Wasm) is faster than JavaScript and is supported by the World Wide Web Consortium (W3C). WebAssembly is used in new generation blockchains such as Polkadot, Cosmos, Solana and Oasis as a virtual machine to interact with decentralized applications (DApps). However, most WebAssembly virtual machines are not compatible with Ethereum Virtual Machine (EVM) applications, which has prevented new applications from running.

Projects developed on Ethereum have lost the opportunity to use new development tools due to the limitations of the virtual machine. This issue ultimately slows down the development of decentralized applications compatible with Ethereum and takes the power of competition from developers. A new standard based on web assembly can solve this bottleneck; A bottleneck that prevents the supply of decentralized applications. In the meantime, we should also mention that the creators of Ethereum have not yet recognized WebAssembly.

As we said, WebAssembly is faster than JavaScript and has the support of the World Wide Web Alliance, and it is used in new generation blockchains such as Polkadat, Cosmas, Solana and Oasis as a virtual machine to interact with decentralized applications. The interesting thing is that in the Ethereum 2.0 roadmap, there is a standard with a web assembly flavor, which is the Ethereum version of this program called eWasm. Now the question arises: while this feature is in the pipeline, what other options are there for the compatibility of the Ethereum virtual machine and the thousands of applications in this ecosystem?

There are various projects that have made it possible for non-Etherium programs to enter the Ethereum network and virtual machine. Some of these programs are guaranteed to port non-Etherium applications to the Ethereum network without sacrificing the performance and speed that WebAssembly offers. In some of these projects, backward compatibility is also considered for developers. This means that smart contracts written in Solidity language in the Ethereum network can be implemented and executed in other networks without changes.

Conclusion

Although more than 5 years have passed since the life of the Ethereum network, this network is still considered one of the most powerful blockchains, and the emergence of DeFi is due to the features and capabilities of this network. Of course, we should not forget that there are problems in this direction and the creators of this network are still struggling with many problems.

The popularity of Ethereum in the DeFi sector and the use of smart contracts are important features of this network and have attracted many users. However, Ethereum needs more improvement and compatibility, and the use of new technologies such as web assembly is one of the ways to improve Ethereum compatibility and the possibility of running decentralized programs. In the meantime, there are various projects that, considering the strength of the Ethereum network, allow non-Etherium projects to enter this network. We have to wait and see what extensive changes will happen in different parts of the ethereum network.

source

Leave a Reply

Your email address will not be published.