According to Vasiliy Shapovalov, the enormity of the move to proof-of-stake could pose complications that were not anticipated.
Shapovalov is a co-founder of Lido and places a strong emphasis on technical advancements, including creating the algorithm and creating the withdrawal protocol following the Merge. Updating governance rules and enhancing algorithms for validator selection are secondary goals.
Since the price of Ethereum has increased by 48 percent just before the impending Merge upgrade, which will transform the blockchain into one driven by proof-of-stake consensus, crypto aficionados are finally seeing some relief from the prolonged bear market. As a result, during the yearly Ethereum Community Conference, or EthCC, in Paris, one of the most hotly debated subjects is the future of Ethereum.
Shapovalov responded that the trend is one of growing consolidation and that certain Layer-two solutions would become redundant as a result of the new upgrade, which speeds up on-chain transactions. When asked about his predictions for Ethereum’s position in the cryptocurrency ecosystem over the next two years. Shapovalov experiences a mix of exhilaration and anxiety:
“The Merge upgrade is like changing the engine on a plane mid-flight. We are overhauling everything from the consensus algorithm to the execution environment. We know some implications of this change on elements like blockchain security, but it’s not guaranteed.
But the co-founder of Lido was upbeat about the upgrade: “A proof-of-stake economy the size of Ethereum now, with a new level of competition, financialization, and new investment opportunities. It will be quite frightening, but let’s wait and see.