The Ethereum foundation has dispatched about $3 million to twenty blockchain -based startups. This is the fourth batch of grants the foundation is awarding to selected startups and individuals tasked with developing more innovative options to push for Ethereum’s mass adoption.
As competition in the cryptocurrency space stiffens, investors are looking for trading assets that are easily usable, secure to trade with and above all scalable. Major players in the same space have got advanced tools and infrastructure giving them a competitive edge over Ethereum. As a result, Ethereum through its foundation is funding startups that can bridge these limitations.
Ethereum’s shortcomings
Ethereum is facing a lot of setbacks that hinder its mass adoption. Some of these problems include, “interoperability, intuitive user experiences, and education of a non-technical audience.” The company is betting on the selected startups its mentorship program to address these shortcomings.
Unlike Ripple’s XRP and other virtual assets performing better, Ethereum faces adverse scalability issues. Currently the network has a capacity to process 15 transactions per second compared to 45,000 that Visa can settle within the same time, a speed that is absolutely not desireble. Fortunately ethereum’s team understands its shortcoming and through its grant program working tirelessly to secure a competitiveness.
Grant beneficiaries
The grant was awarded on the basis of projects individuals and startups are working on. The crypto community has adversely criticized ethereum’s scalability. The company in a bid to resolve this has splashed a million dollars to be shared between Prysmatic Labs and Status. The two companies working collaboratively to develop ‘Nimbus’, Ethereum’s 2.0 client.
Ethereum also awarded $420,000 to go into the development a blockchain-based software developer’s kit (SDK) that would be used in its “custodial payment channel hub.” ‘Spankchain, Kyokan and Connext’ had this to say about the grant;
“We would not exist without the time and energy that you put into Ethereum. While the program continues to grow, we will increasingly continue to involve more community members in the decision making process.”
The grant foundation is a step towards the right direction for Ethereum as it explores options that will push for its mass adoption.
