The Ethereum Foundation, which aims at improving and supporting the Ethereum platform, has started funding efforts for the creation of specializing mining hardware in collaboration with data storage network, Filecoin. This update was announced by researcher Justin Drake, on Thursday, at Devcon, the annual gathering of developers Prague. He also reviewed the preliminary designs for application specific circuits or ASICs, that can support and future ethereum technology called beacon chain.
Beacon chain is a random number generator, and it is expected that it will form a significant part of the next iteration of the ethereum network. The ethereum 2.0 will function under an alternative proof of stake consensus protocol as compared to the proof-of-work approach that is generally used today.
Instead, these ASIC devices will use in a comparatively cheaper operation known as the Verifiable Delay Function. This helps to shuffle the validators that are intended to replace miners in ethereum’s proof-of-stake system. The idea is that the hardware will prevent any one individual or organisation from coalescing enough power to overtake system operations.
The estimated cost for this project is 20-30 million USD, which includes a 15-20 million Usd allocation for research and development, and another 5 million USD to build approximately 5000 machines.
Filecoin and Ethereum Foundation, whose initial coin offering (ICO) which was introduced last year, raised more than $250 million, will split their costs for research and development fifty-fifty. Their overall commitments, however, could be reduced, as Drake followed an open door policy for other blockchain projects contributing funds.
Drake gave off a positive tone about this project, and particularly about the prospect of designing and implementing the plan in an open-source fashion.
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