Ethereum Foundation Gives Parity $5 Million to Help ETH Scale

The Ethereum Foundation has announced a $5 million grant to Parity Technologies in recognition of its contributions to the development of the entire Ethereum ecosystem and the work it has done on the core infrastructure of its redesign, dubbed “Ethereum 2.0.” The Foundation made this announcement via a press release published earlier this week, lauding Parity as a significant member of the ecosystem.

For several years, Parity Technologies has been an invaluable member of the Ethereum ecosystem for their leadership in core development efforts, their Parity Ethereum client and more. Their work has continued at a blazing pace. At Devcon4 in Prague, Parity team members presented their plans to develop a Serenity implementation, exampling an exciting direction for the years ahead.

With this grant, Parity Technologies will be entrusted to build out its own Ethereum development security, scaling and improve its usability.
In part, the release stated, “This grant will fund Parity’s work on Casper, sharding, light clients, developer tools, QA, audits and infrastructure improvements.”

The grant comes in various tranches; the first tranche has been awarded, while the subsequent ones will be awarded after Parity reaches certain milestones laid out by the Ethereum Foundation, including:

  • The successful shipment of a light wallet for the mainnet.
    The completion of the eWasm compatibility work.
    The completion of Phases 0 and 1 of the sharding process.

Parity Technologies is most popular for the development and introduction of Parity Ethereum, a fast modular and robust client that runs on the Ethereum blockchain. Parity Ethereum is used majorly by cryptocurrency miners, developers of decentralized apps and various service providers. It has also been recognized as an integral part of the general infrastructure of Ethereum.

Also, beyond the development of Parity Ethereum, Parity Technologies has also developed a wide array of free and open-source tools that gave developers the ease and convenience required to access the Ethereum network and launch their Ethereum-based blockchains.
As noted by the release, Parity has been an active contributor to the development of Ethereum 2.0. The company launched a Casper testnet back in May 2018 and implemented an Ethereum 2.0 Beacon Chain with the use of Substrate in October.

Last month, Ethereum founder Vitalik Buterin donated Ethereum tokens worth about $324,000 to startups working on Ethereum 2.0. The spontaneous donation was inspired by a Twitter chat between the developers and Buterin, where they had complained about the lack of funding on Ethereum based projects.

Last modified: March 4, 2021 2:30 PM

Jimmy Aki: Jimmy has been following the development of blockchain for several years, and he is optimistic about its potential to democratize the financial system.