Delphi Digital is an international research firm which produces unbiased, actionable content critical themes affecting digital assets and distributed ledger technology. Kevin Kelly and Lan Liberman found Delphi Digital.


Delphi Digital has recently published a sixty-five-page report, titled ‘Entering the Ethereum.‘ The articles have made a prospective analysis of the state of the Ethereum Network post its POS update. Ethereum which recently successfully conducted the Constantinople hard fork on Ethereum has many updates outlined for the next two years.


The last update outlined on the road map is Serenity, which would finally implement Proof of Stake (PoS) and sharding on Ethereum. A few contradictory points from the report caught the attention of Vitalik Buterin, the co-founder of Ethereum.


Vitalik Finds Flaws in the Report, Not in Ethereum-


He raised the first point of contradiction about the concerns regarding rewards of staking on PoS. According to the report, at $100 per ETH, a stakeholder with 32 ETH would incur a loss of 26% annually. However, Vitalik claimed that the research had not accounted for the proportionality between the transaction cost and the price of Ethereum.




Vitalik also explanied the fact that “if the cost to process one shard exceeds staking rewards from 32 eth, then that means transaction fees need to go up and/or shard count needs to go down.”




Final Implications of the Report and Vitalik’s Message About Price


Nevertheless, after a complete analysis of Ethereum and its future plans, the report by Delphi Digital outlines some interesting conclusions. Firstly, it claims that Bitcoin might still be the number one cryptocurrency in terms of price as it is a better Store of Value.






“Bitcoin has stronger characteristics for being perceived as a Store of Value in the long run, however, we believe Ethereum can make some changes to better position itself as one.”




Finally, about the shift from PoW to PoS, the report concluded by saying that the risks with PoS can be mitigated and the updates can be made successful.



“There is risk in the transition from PoW to PoS, and PoS has a shorter history to evaluate. However, we believe the change could be a net benefit for Ethereum. Since we have refuted the previous arguments why ETH can not accrue value, this is a benefit for the network’s security under PoS.”









As a programming prodigy himself, the Canadian-Russian cryptographer abstained from making any comments on the price of Ethereum. He only seems to be concerned about the development and brand of Ethereum in one of the most robust emerging markets; the Blockchain Industry.


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