What a year 2020 for Ethereum! Ethereum 2.0 phase 0, DeFi and democratization , Ethereum could hardly ask for better. Now that we’ve just stepped into the new year, we’re able to take a closer look at the expectations for 2021, and how Ethereum’s year might turn out.
DeFi continues its path
Haaaa the DeFi, how to miss this ecosystem after its performance in 2020! In view of the constant evolution that DeFi has undergone in 2020 , it is a safe bet that the ecosystem will continue to be talked about in 2021 .
Obviously, the year 2021 could turn the current ranking of Bitcoin Formula projects upside down , with the arrival of new projects , or the evolution of others.
Unfortunately, the DeFi craze in 2020 has also resulted in a huge number of hacks and attacks of all kinds . Among these attacks, the reentrancy attack was one of the most common.
So, for the year 2021, we can hope that smart contract developers as well as investors learn from the mistakes of the past and that better practices are put in place . For example, the systematic audit of smart contracts , the regular absence of which was unfortunately the cause of too many hacks in 2020.
This maturation will be necessary for Ethereum. If the community as a whole doesn’t apply best practices better, DeFi on Ethereum could well see its reputation tarnished once again.
Phase 1 of Ethereum 2.0
Impossible to talk about Ethereum, without broaching the subject Ethereum 2.0. Indeed, phase 0 of Ethereum 2.0 was deployed on December 1.
This phase is the first in a series of three phases spanning several years .
Thus, after phase 0 which aimed to set up the beacon chain, the backbone of Ethereum 2.0. Phase 1 will introduce shard chains.
These shard chains, or simply shards , have the particularity of allowing the network to be divided into a multitude of subnetworks , responsible for independently processing their data. As such, they are an integral part of Ethereum’s scaling strategy.
According to the announcements of the Ethereum foundation, phase 1 could see the light of day in 2021 . However, Ethereum 2.0 is subscribed to delays and it is not excluded that these deadlines are not met.
Democratization of second layer solutions
Although excellent for Ethereum, the year 2020 still had its hiccups . For example, the network has found itself congested too many times, resulting in significant increases in transaction costs .
These periods of paralysis for the network had many harmful effects and, in addition to annoying users, resulted in the loss of several million dollars .
Thus, we can hope that 2021 will be the year of the democratization of second-layer solutions . Indeed, although Ethereum 2.0 is supposed to solve Ethereum’s scalability and performance issues, this update will not be fully deployed in 2022, or even in 2023. Thus, it is essential to put in place solutions while waiting. its deployment.
In 2020, many advancements were made on Ethereum’s second layer solutions. We can notably cite the work carried out by OMG Network , DiversiFi and Loopring .
Many DeFi giants have already announced their desire to migrate their applications to the second layer, such as Uniswap , Aave or Synthetix .