What happened?
Ethereum’s co-founder, Vitalik Buterin, proposed a major update to Ethereum by replacing its Virtual Machine (EVM) bytecode with the RISC-V instruction set. This proposal aims to significantly improve Ethereum’s scalability and efficiency, particularly in handling computations like zero-knowledge proofs. The move could enhance transaction throughput by 50-100 times, sparking discussions among developers and traders about its potential impact.
Who does this affect?
The proposed update will primarily affect Ethereum developers, DApp creators, and traders. It promises to simplify the network’s code while maintaining compatibility with popular programming languages, benefiting developers. Additionally, traders and users of Ethereum could see lower transaction costs and increased network activity due to improved scalability.
Why does this matter?
If successful, Vitalik’s proposal could significantly increase Ethereum’s market appeal by making the network more efficient and cost-effective. Improved scalability may attract more developers and projects to Ethereum, potentially boosting demand for Ether (ETH). However, traders should remain cautious as macroeconomic factors and the implementation challenges might affect Ethereum’s market performance in the short term.