Ethereum 2.0 is officially here!

Ethereum 2.0 is officially here!

By Roberto D. | CryptoFarm | 29 Nov 2020


The highly anticipated launch of Ethereum 2.0 is scheduled for next week. It has been confirmed that ETH 2.0's Proof-of-Stake blockchain, known as the “Beacon Chain”, will run parallel to the Ethereum network starting December 1st. Yes, there are only two days left.

 

I have already talked about Eth 2.0, if you are new to the subject I recommend my previous article: Ethereum 2.0: official launch date and current situation!

 

Although some community members were skeptical about this launch date, a whopping 524,288 Ether (ETH) were deposited into the Ethereum 2.0 contract by 16,384 would-be validators before the expiration date. The Ethereum Foundation can therefore guarantee that the Proof-of-Stake network will actually be operational on schedule.

It is also important to note that many funds have arrived in the deposit agreement even AFTER the achievement of the set objective.

On November 24, to give an all-round analysis of the process, Vitalik Buterin, the co-founder of Ethereum, tweeted an image showing the impressive amount of transactions processed by the Ethereum network over time:

I report in the images some statistics on ETH 2.0 deposits (in particular those that will be used for the launch).

I note that this data is based on the addresses of the depositors and not on verified identities, so they could be distorted by the practice of separating or sharing accounts. 

 

 

Although the provenance of these transactions is unclear, Alex Mashinsky, founder of Celsius Network (a crypto lending platform) revealed that his company sent 25,000 ETH to ensure that the ETH 2.0 deposit agreement had sufficient funds to launch the December 1st.

According to Mashinsky, the amount of ETH deposited by Celsius was equivalent to $ 15,125,000 at the time of the transaction. Mashinsky further pointed out that the funds came from the Celsius community asset pool, explaining that these will be used to generate an even higher return for the community once the Ethereum 2.0 network goes live.

Currently, Celsius users can earn up to 7.21% annually on ETH held in the Celsius wallet. Mashinsky said:

 

We already have 230,000 users on the Celsius network, as well as $ 3.3 billion in assets. These users are depositing ETH and in doing so they allow the network to earn in many different ways. The 25,000 ETH that contributed to Ethereum 2.0's Proof-of-Stake network will generate another source of return for our community. [...]

We built our CEL token on the Ethereum blockchain and used it to scale and become one of the fastest growing companies in the crypto industry. We are proud to participate in the birth of ETH 2.0, contributing 25,000 ETH from the Celsius community. We hope to be able to help a company that has given us a hand to grow our project.

 

Hopes and fears for ETH 2.0

Although the ETH 2.0 Beacon Chain is expected to start on December 1st, there are still concerns in the crypto world.

For example, while scalability issues are expected to be solved by migrating to a Proof-of-Stake consensus algorithm, the security of some smart contracts remains questionable. These issues came to light especially following the boom in DeFi projects.

For this reason, a new group of the Enterprise Ethereum Alliance, called the EthTrust Security Levels Working Group, has focused on creating a set of standards to ensure the security of smart contracts: they hope, over time, to develop a digital ledger for ensure the security of the code that will be used by businesses.

Furthermore, some continue to fear that the benefits of the launch of Ethereum 2.0 will not be seen immediately, but will be gradual: for many there is an urgent need for "Layer-2" scalability solutions.

However, Mashinsky still expressed enthusiasm for the faster speed of ETH's network:

 

Ethereum 2.0 will scale everything 100 times faster than it is now. The migration of Ethereum from a Proof-of-Work to a Proof-of-Stake network will open up a universe of new ideas and opportunities that previously could not be realized due to scalability issues.

 

 

What do you think of it? Are you happy with the new Ethereum update? Do you think it will solve the problems that have long plagued cryptocurrency or not? Let me know yours in the comments.

As always, thank you if you made it this far, and see you next time!

 

 


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Roberto D.
Roberto D.

Born, and still living, in Italy. Passionate about cryptocurrencies since I discovered ethereum in 2016 https://linktr.ee/robertod


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