Ethereum refutes claims it is spending $15 million for the development VDFs

VDFs are essential for the future of the Ethereum network.
Ethereum 2.0 is the final stage of the four-stage roadmap used in the upgrade of the Ethereum network.

Ethereum Foundation has come out to deny allegations that it has planned to spend approximately $15 million to develop Verifiable Delay Functions (VDFs) that will be utilized during the much-anticipated transition to a Proof of Stake (PoS) consensus. As reported by Cointelegraph on February 8, the network’s researcher Justin Drake clarified to a private correspondent.

Another news website, CoinDesk recently published a report that claimed that the Foundation was deliberating a $15 million investment to aid in the development of the technology. VDFs are essential for the future of Ethereum network especially as it transits from the Proof of Work (PoW) consensus to a PoS consensus algorithm. In response to Cointelegraph Drake said:

"The EF [Ethereum Foundation] is not looking to spend $15m. We are looking to split funds 50/50 with Filecoin or other financial partners.”

VDFs is a technology that is used to protect a system that mainly relies on the generation of random values or otherwise called pseudo from risks of attack and manipulation.

Ethereum Foundation is still working through its roadmap to upgrade the network. The final stage of the roadmap is Ethereum 2.0/Serenity and will include the transition to a PoS concept. Currently, the network is at the third stage referred to as Metropolis and is made up of a couple of hard forks: Byzantium and Constantinople.

At press time of press, Ethereum (ETH) is trading at $109.41. It has corrected higher by 4.21% in the last 24-hours. It is the third largest crypto with a market cap of $11.46 billion and 24-hour trading volume of $2.64 billion.

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