Ethereum’s Painful 2.0 Transition has a Solution, According to Uniris

Today most of the governance mechanisms in cryptocurrencies such as in Bitcoin, Ethereum, etc… are informal (off-chain). These governance models are designed or improved based on Satoshi Nakomoto’s original whitepaper. Improvement proposals to the blockchain are initially submitted by developers and then the core group involved with the blockchain, mostly consisting of developers, are responsible for coordinating and achieving consensus between stakeholders.In any blockchain protocol, the stakeholders are mainlyminers (operate nodes)developers (build the blockchain)users (use/invest the cryptocurrency of the blockchain)In this article we will discuss ‘On-Chain Governance’ and especially the on-chain governance model by Uniris, where any modifications on the blockchain will be quick, formal, and work solely online.In layman terms, on-chain governance vs off-chain governance is more like ‘Soft Brexit vs Hard Brexit’.What is the problem with Off-Chain Governance?Let us take the example of Ethereum, which adopted an off-chain governance model. Usually when improvement proposals to Ethereum are submitted by the developers, the core Ethereum dev team is responsible for the approval or disapproval of the improvement proposal. All the approval process is offline and once approved, the code will be online.Currently Ethereum is switching from its original 1.0 version to Ethereum 2.0. The transition is quite risky, complex, and protracted. The main motive for this transition is to achieve scalability and hence have higher TPS than Visa, Mastercard etc… (>45000 TPS). Ethereum expects to continue its growth, hence all its node operators are indirectly ordered to work on computers with more processing power and storage, which will easily lead to some form of centralization. Ultimately, support for such a network will decrease! (Especially in the decentralized world.)For this transition to be successful all the existing smart contracts need to be moved to another network. The new Ethereum 2.0 network would slowly add all the smart contracts (all these…