Ethereum continues to solidify its future in the cryptocurrency world. On May 21, the Ethereum Foundation announced it was allocating $30 million to help further advance the Ethereum network. As stated in their blog post, Ethereum will be allocating $3 million to developer support, $8 million to current projects, and $19 million to future projects.
New funding will be aimed at attracting academic involvement and new R&D talent. In addition, the Foundation will also be adding extra resources toward documentation, communication/ marketing, and Plasma.
Known as Ethereum 2.0, Plasma represents a scaling solution for Ethereum users who employ smart contracts. By helping to advance Plasma, the Ethereum Foundation hopes to solidify their worldwide decentralization efforts. The blockchain educational portal district0x describes Plasma as “a second layer scaling solution in development. It is expected to be the second fully deployed scaling solution on the Ethereum mainnet after state channels. Plasma refers to a framework that allows the creation of ‘child’ blockchains that use the main Ethereum chain as a trust and arbitration layer. In Plasma, child chains can be configured to match the demands of specific use cases, specifically those that aren’t feasible on Ethereum today. Decentralized applications that force users to incur high transaction fees are much better suited to run on Plasma.”
Ultimately we can expect Plasma to radically reduce Ethereum network congestion. As a result, users can expect cheaper fees and greater speed, and developers will be able to scale their dApps.