Why Sharding is Bullish News for Ethereum (ETH)

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Ethereum (ETH) is generating some excitement after the founder, Vitalik Buterin, tweeted simply, "sharding is coming" and later went on to elaborate in a post on Reddit. As unpleasant as it may sound, sharding has been a long awaited feature for the Ethereum (ETH) network. Long rumored and with several coins such as Zilliqa (ZIL) proposing solutions, sharding has been seen as somewhat of a holy grail technology for Ethereum (ETH). Accompanying the tweet was a link to a GitHub link to the "Beacon node", the Ethereum (ETH) network's proof of concept, and an image illustrating twelve shards in action.


One of the biggest concerns with Ethereum (ETH) and in general cryptocurrency has been the issue of scaling. As more people adopt ETH and Erc20 tokens it causes the network to slow as it loses capacity. Some fear that unchecked this may lead to a complete shutdown of the Ethereum (ETH) network or at least sever enough delays it will scare users away. Sharding seeks to alleviate this and solve the problems associated with scalability by running concurrent networks rather than a single network. This will allow for larger, faster transactions, less network congestion, and cheaper fees.

Why Sharding is Bullish News For Ethereum (ETH)

On Reddit, Buterin went much more in-depth outlining the proof of concept and sharding's utilization in the future. He explained the basic idea of sharding and how it can be "bolted" or layered on top of the existing Ethereum (ETH) chain, somewhat similar to Bitcoin's (BTC) Lightening Network in concept, if not execution. Additionally, Buterin revealed that sharding would be merged with Ethereum's (ETH) Casper Protocol, the mechanism by which Ethereum (ETH) will utilize Proof of Stake. At the current time Ethereum (ETH) is running a simulation of about a dozen shards for the purpose of research and demonstration, the expected number of shards, once it goes live, will be 100 or possibly more.

For Ethereum (ETH), which recently lost value on concerns of SEC regulation, this is very bullish news. Sharding and proof of stake have been long awaited features for the Ethereum (ETH) and with implementation close at hand many have begun to accumulate in preparation. It is very likely this will spark an upward momentum carrying ETH's price higher over the coming months.

For more information and a thorough technical explanation you can visit Buterin's Reddit post here: https://www.reddit.com/r/ethereum/comments/8g1q55/vitalik_teases_sharding_release_on_twitter/dy85pq0/

The Github research release can be found here: https://github.com/ethereum/research/tree/master/sharding_fork_choice_poc

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Disclosure:

I have received no additional compensation other than the Ethereum that Hade Technologies pays to produce Exclusive content

Comments (7)

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  • Scott
  • ,  Contributor
  • 08 May 2018, 05:05 pm

, you have a great manner of simplifying otherwise very complex topics. Will definitely forward my normie friends to your site.\n

   0   Reply (1)   Follow(437)  

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    thanks. I try my best, it isn't terribly easy to translate all the jargon sometimes haha

       0  

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      • DoubleD
      • ,  Contributor
      • 08 May 2018, 05:05 pm

      More about PoS please!\\n\n

         0   Reply (1)   Follow(437)  

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        I will write an update when more information is available. right now all that's known is it will be implemented in some form in the future. the rest is up to speculation.

           0  

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          • John R
          • ,  Contributor
          • 08 May 2018, 05:05 pm

          Are you able to expand on what this entails?\n

             0   Reply (1)   Follow(437)  

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            Unfortunately I can't atm as there isn't really more information than what buterin has put forth.

               0  

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              • Jesse
              • ,  Contributor
              • 08 May 2018, 05:05 pm

              Best explanation I’ve seen around. Thank you!!\n

                 0   Reply (0)   Follow(437)  

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