Last Friday, 16 February 2018, six large-scale projects Blockchain, OmiseGO, Cosmos, Golem Maker, and Raiden, together with Japanese venture capital company Global Brain, not just one who graduated last successful ICO, announced the creation of a Ethereum Community Fund (ECF).
As mentioned, this should help to improve and optimize the Ethereum ecosystem.
Buterin keeps a pulse on the start
The start Fund will start from the infusion of $100 million., there will likely be additional investments of each of the six project participants.
Some of the creators of Ethereum, including its founder Vitalik Buterin will be advisers to the Fund.
In particular, Buterin already gave an explanation about her participation in the work of a promising project:
“The Ethereum have grown over several years, what I achieved already all happened. But the work did not end there. So our values would not deception, it is necessary to develop a strategy for Ethereum, and implementation of the ECF Fund will make everyone reconsider their views on the entire ecosystem Ethereum”.
Personal goal Balerina — use open source code for Ethereum, will remain unchanged. In 2017 you can see real steps of the decentralization of currency on 17 September has been allocated about $1.8 billion for the advanced cryptoprocta OmiseGO. At about this time has been allocated $370 million for crypto currency exchange Kyber Network. The main funds were used to increase the scalability of Ethereum, in particular for the blockchain network.
The profit will be, Ethereum should work
Buterin also indicated that he does not plan to participate in any other project, except in OmiseGO and Kyber Network, and all dividends received will be spent exclusively on the improvement of the Protocol for the blockchain network.
“I officially announce that 100% of dividends from OmiseGO + Kyber Network will be sent as aid and charity for young cryptoprocta, in particular for AMF, GiveD, SENS etc, and also for a private Fund Ethereum second-layer(maintains the infrastructure of the state channels, as well as wallets such as multisig”).
But, on the other hand, Buterin believes that all applicable tasks have to be transparent and open, must be excluded from the scheme receiving any profit. Buterin said:
“There should be only 100% open source, no scheme of profit, including the ICO, have no right to participate in the new project. I know that many focused on the fact that subsequent scalability promises them profits and dividends, in principle, is not planned in the Fund.”
Special emphasis on the part Buterin was pointed at the following point:
“I know it’s cryptoprocta want to receive co-financing under the scheme ICO+token, we introduce an innovative financing scheme, avoiding this route, I think, a creative approach will help to strengthen old cryptogram on the market.”
How to allocate grants from the Fund
Note that Buterin and previously supported projects with open source.
His private Fund and not staying here in the side, and $100 million. will focus on the development of promising cryptofauna ECF.
According to TechCrunch grants will be distributed in the range from $ 50,000 to $500,000, some projects, in case of a successful startup will receive additional support from the Fund. To
CryptoPhone, open-source and non-profit, will receive subsidies and support.
The problem with the staff in blockchain technology
There is the additional problem of cryptoprocta is a shortage of developers.
Previously co-founder of venture company Augur Joey Circle have expressed their concern that cryptoprocta provide a good basis, but there is an acute shortage of specialists in this direction:
“Ethereum is growing and with it grow the new requirements, and developers is not enough in this direction. So, there are unresolved issues Ethereum, such as segmentation, proof of share, plasma. All these problems need to be addressed effectively, and I see that not enough experienced professionals in this direction. The Fund needs urgently to hire prospective employees who will help to solve the problem of Ethereum”.
The scalability problem is now actual for crypto currencies. Currently the network can only handle up to 1 million transactions per day. This is not enough, and many believe that Ethereum needs to solve quickly the problem. So, Coinbase co-founder Fred Arcam said that the cryptocurrency will improve scalability at least 100 times in comparison with what is available.
Some of the applications that are running on Ethereum, only partially solve the problem of scalability.
However, in recent months, was successfully implemented new software in Ethereum Blockchain to solve this problem, in particular CryptoKitties, CryptoKribs, Bancor and EtherCraft, but these apps have a technical problem in processing limits the number of transactions per day.