Vitalik Buterin Donates 3,000 ETH to New Startups

December 21, 2018 AtoZ MarketsThe co-founder and main inspirer of Ethereum, Vitalik Buterin, calls himself on Twitter as “Vitalik Non-giver of Ether” clearly indicating that he is not fond of charity. However, he recently showed the opposite, allocating about 3000 ETH tokens each (currently worth about $ 972,000) to three separate startups working on the Ethereum ecosystem.

Who Are The Lucky Ones?

Three startups: Prysmatic Labs, Sigma Prime, and ChainSafe Systems received about 1000 ETH  each as a “contribution to the push the development of Ethereum 2.0.” Sigma Prime is a team of developers based in Sydney working on the Lighthouse project, an Ethereum 2.0 client, embodied by a Github repository.

Sigma Prime (SigP) specializing in blockchain technology and information security was incorporated in late-October 2016, shortly after Ethereum Devcon 2 in Shanghai. The company collaborates with both start-ups and established businesses to innovate the blockchain space while maintaining impeccable information security practices. Long prior, the founders had been working together in the crypto space: organizing the Sydney Ethereum meetup, writing smart-contracts, building GPU miners and undertaking research.

The next startup supported by Buterin -Prysmatic Labs will, in turn, focus on improving the scalability of the entire Ethereum network. According to the description on the official page, the company building out a full-featured sharding client, allowing the system to process transactions at over 10x – 100x of its current speed. It is reported that the last company financed by Buterin is the Canadian company ChainSafe, which also develops the client Ethereum 2.0.

How It All Started?

At one time, a donation of $ 100,000 that Buterin himself received paved the way for the creation of Ethereum. Three years after the launch of his project, he himself applied the role of an investor in new ambitious projects. The impetus for funding was the Twitter conversation between Amin Suleymani, the CEO of the @SpankChain and ConsenSys Alum, and Preston Van Lon, one of the founders of Prysmatic Labs. Amin Suleymani in his twitter asked “where are the current ETH 2.0 commands losing time” and “what to do if everyone working on it synchronizes every day?”. In addition, Suleymani asked: “How can I throw money on the problem?” Prysmatic Labs co-founder Van Lon explained that the Ethereum development team lacks funding for projects aimed at developing the blockchain, which led to a slowdown in the development of projects. Van Lon, who still works as a software engineer at Google, added that his team received grants in the past, but “was barely enough to take the whole team on a full-time basis with significant wage cuts and that, of course, not for us to scale the team to where we need it.” Buterin responded to this conversation with one phrase: “Just sent 1000 eth. Yolo” After donating, the balance of the Buterin Ethereum wallet decreased from more than 10,000 Eth (about 1,097,700 US dollars) to 7,600.

With this approach, the Ethereum network will be divided into various components, which interact in contrast to the use of the complete nodes’ structure.  The Sharding idea is much more responsive to adding transactions to the ledger, but it will also require a review of the current topology of the Ethereum network protocol. While Prysmatic Labs and other recipients are expanding, Ethereum ConsenSys, a development studio that recently fired employees due to a slowdown in the market, stated that it is going to reduce inefficient projects for those that benefit the Ethereum ecosystem or create an income or for the public good.

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