According to recent data, Ethereum‘s development activity decreased in comparison to other cryptocurrencies such as Polkadot [DOT] and Cardano [ADA]. This decline could have negative impacts on the long-term prospects of Ethereum.

However, there is hope on the horizon as the development activity could increase due to Ethereum developers’ new proposal. The new Poseidon proposal involves introducing a new type of contract that uses the Poseidon cryptographic hashing algorithm.

The new contract will allow different systems to work together and will also add more options for cryptographic hashing to the Ethereum Virtual Machine. These include Ethereum Virtual Machine and zero-knowledge and Validity rollups.

Additionally, this new contract could make it easier and cheaper to use zero-knowledge proofs and proof-of-reserves. These would be Merkle-based proofs on the Ethereum network.