Ethereum Foundation $5 Million Grant to British Company Parity Technologies

Last Modified:12 May 2020 16:11:46
Ethereum Foundation $5 Million Grant to British Company Parity Technologies

According to a post published by Ethereum (a Blockchain-based cryptocurrency) official blog on January 7, Ethereum foundation grants $5 million to Parity Technologies company headquartered in England.

Ethereum is the second biggest Blockchain-based cryptocurrency platform in the market which was created aiming to set the stage to run decentralized programs besides automating processes. Ethereum cryptocurrency was officially introduced on July 30, 2015, under the management of Vitalik Buterin, a 23-year-old Russian.

According to this post, this financial aim of the Ethereum foundation to the British company Parity Technologies is to develop scalability, usability, and security activities; that is, this money will be invested on Parity company activities in the areas of Ethereum Casper (an update for the Ethereum cryptocurrency), Ethereum Sharding (a solution in the second layer of Ethereum network which resolves the issues of scalability), light clients, developer tools, quality assurance, auditing and infrastructure improvements.

It is further explained in this post that the aforementioned budget will be provided in a number of installments, the first one has been paid, and Parity has already completed its related activity.

However, what are Ethereum Casper and Sharding?

One of the challenging problems of cryptocurrencies is the increase in the number of transactions per second which is currently very low. In the cryptocurrency market, the problem of scalability in Blockchain (a distributed and encrypted database) is very prominent. To solve this problem, three features of decentralization, scalability, and security should be balanced in current Blockchains like Ethereum. To reach this balance, the Ethereum foundation works on three different but complementary projects: Casper, Plasma, and Sharding.

Cryptocurrency is an encrypted currency which is also known as virtual currency, electronic currency, or currency crypto.

Bitcoin was the first cryptocurrency introduced to the market which started its operation based on Blockchain.

Due to its developed nature, Parity Technologies is one of the most well-known customers of Ethereum.

According to a report published by Cointelegraph news website on November 2017, a user of Ethereum Parity multi-purpose wallet, through a case of vulnerability in the smart contracts, accidentally gained $280 million in unreachable Ethereum. In the October of last year, Parity renovated a live Blockchain with a new Mac brand in only 15 minutes, which reportedly lost its power and got away from its purpose while trying to determine the overall speed of platform launch process in order to complete part of its demo.

The blockchain is an encrypted infrastructure on which digital currencies (encrypted currencies) are founded. It provides security in encrypted currencies. So, no one can manipulate transactions records, and they are available for the users transparently. This encrypted platform enjoys four major benefits:

• Not being controlled by any institution or person

• Impossible to face failure and cessation

• Recording transactions in a connected network of all users. Therefore, any change in a part of Blockchain should be preceded by the change in all users’ transactions in the network which is not practically possible.

• The necessity of manipulating the whole network in case of the need to manipulate Blockchain information