Ethereum course shoots upwards: ETH 2.0 exceeds critical point
It’s official: The first phase of the multi-stage introduction of Ethereum (ETH) 2.0 begins on December 01. The deposit contract for triggering phase zero, has enough clocked ETH and is ready for the long awaited upgrade. Ethereum 2.0 will not only enable the strengthening Crypto Code Review of ETH, but will radically change the economic model, scalability and governance of Ethereum. It therefore represents one of the most important upgrades in the history of ETH.
The ETH 2.0 Deposit Contract, which was published in early November, has accumulated more than 540,000 ETH, currently worth more than 380 million US dollars.
This ensures that the launch of Ethereum 2.0 will start next week, officially initiating the transition of the second largest crypto currency from a proof-of-work consensus mechanism to a proof-of-stake mechanism.
We have liftoff. 🚀
Thank you to the devs, the researchers, educators and community members who made this happen.
See you on December 1st @ noon UTC. pic.twitter.com/bZ15EDefMK
– Eth 2.0 Deposit Contract – Progress Meter Bot (@DepositEth) November 24, 2020
Moreover, this change is intended to solve one of Ethereum’s most fundamental problems by finally allowing the crypto currency to scale.
After initial hesitation, some major investors yesterday deposited more than 150,000 ETH in the Deposit Contract. This confirms the start of phase 0 on December 1.
After initial hesitation, the last 25 percent needed to start Phase Zero was deposited last night within just four hours.
Ethereum Staking: Beacon Chain starts on 1 December
A parallel proof-of-stake block chain called Beacon Chain will be launched next week. The Beacon Chain exists parallel to the existing Ethereum network. In addition, the first phase of the new chain has no impact on existing users or ETH’s Decentralized Finance (DeFi) sector.
Nevertheless, the upgrade fundamentally changes Ethereum. The main players in the Beacon Chain are the ETH Stakers. Like Bitcoin Miner, they receive rewards for validating transactions and securing the network. To be an ETH 2.0 validator, you must stake at least 32 ETH or participate in a staking pool.
32 ETH as sought after as never before
Furthermore, the developments of the past months show that more and more investors are fighting for the ETH reserves of the crypto stock exchanges.
The activation of the Beacon Chain represents the first of four phases of the transition from ETH to ETH 2.0. Finally, all applications are to switch to Ethereum 2.0 after the completion of phase 4.
There are several theories in crypto space about how this affects the ETH network. Danny Ryan, coordinator of Ethereum 2.0 and developer of the Ethereum Foundation, said the following:
I strongly believe that ETH 2.0 will contribute significantly to the intrinsic value of the network over time. I think Ethereum 2.0 is an incredible upgrade that will allow ETH to be the backbone of a decentralized Internet.
The Ethereum course has already been inspired by the upcoming introduction of Phase Zero Ethereum course