Ethereum 2.0 Likely to Happen as Tens of Millions Sent to Deposit Contract
Ethereum 2.0 seems to be confirmed to happen soon as deposits in the contract spike.
Ethereum 2.0 Nears as Deposits Spike
There is now 80% of the ETH needed to launch the upgrade by December 1st, as Etherscan shows. For some more context, there needs to be 524,000 ETH in the contract for the upgrade to take place on the planned launch date.
Large whales and a number of smaller investors have deposited a large amount of funds into the contract as they look to support the upgrade and to make ETH by locking their funds in the contract.
But what happens if the threshold is not reached by the deadline. According to developers, the threshold can be adjusted in the future to ensure that there is not ETH locked in the contract forever. One developer recently said on the matter:
“I personally think that for initial launch, the 100k+ ETH in the contract is sufficient, and that adjusting the threshold down to not leave that ETH in limbo for too long makes sense.”
What is ETH2?
For some more context, here’s some more context about ETH2.
Danny Ryan, a researcher at the Ethereum Foundation, recently said to Paradigm on the update:
“If you haven’t had a chance to read my recent blog post, The State of Eth2, I highly recommend it. I try to give context on the project, discuss the trade-offs, the timelines, and the benefits over time. Specifically, check out the “Benefits of eth2 to the community over time” section. In short, Phase 0 bootstraps the system, Phase 1 provides a highly scalable data-layer that, through the use of eth2 light clients in Ethereum, can be leveraged by layer 2 constructions for scalability, Phase 1.5 is the unification of the Ethereum chain that we know and love as a shard under the upgraded eth2 consensus, and Phase 2+ is expanding the functionality of shards over time.”
Ethereum 2.0 will integrate a technology called sharding, which will split up the processing of transactions amongst different groups of nodes to increase transaction throughput:
“Both of these mechanisms are designed to enhance the system while retaining strong properties of decentralization. You can easily scale up a block chain through simpler mechanisms than sharding, but these mechanisms tend to reduce the ability for users to follow and participate in consensus with consumer hardware. Proof of Stake and Sharding, though, allow for a wide set of participants to contribute to the construction of a highly scalable protocol even with standard consumer hardware.”
Analysts expect the integration of Ethereum 2.0 to result in a rally in the price of ETH over time.
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com Ethereum 2.0 Likely to Happen as Tens of Millions Sent to Deposit Contract
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Nick Chong, @Khareem Sudlow