The testing stage of phase 0, the first stage for ETH 2.0 is expected to happen on December 1. In line with this, Vitalik Buterin, the founder of Ethereum has deposited his first ether for the next iteration of the blockchain network.
Buterin’s “VB2” address sends 100 transactions for 32 Ether each. It totaled 3,200 units of the cryptocurrency according to TrustedNodes. He made a total deposit amounting to $1.4M.
On Nov 4, Ethereum Foundation also published ETH 2.0 specifications which explain how the genesis phase will be enforced. It also includes the mainnet deposit contract address that will be used to trigger the staking deployment.
The planned upgrade has taken some time to be implemented. Through the upgrade, the network aims to improve scalability and security. In the phase 0 transition, energy consumption will be reduced according to its developers. Also, through ETH 2, Ethereum will turn into a proof of stake blockchain by introducing shard chains. Currently, Ethereum is a proof-of-work-blockchain that relies heavily on miners. Now, how does PoS work?
Based on the published updates on Ethereum’s Foundation, by committing ETH, one can become a trusted validator. As validators, they run software that confirms transactions and, when chosen, creates new blocks in the chain. To qualify, you have to own 32 ETH but they will also be opening smaller stakes by joining staking pools. Validators will provide network security by processing transactions and making sure everyone agrees on the same data.
As included in the update, Danny Ryan stated that “To trigger genesis at this time, there must be at least 16384 32-ETH validator deposits 7 days prior to December 1. If not, genesis will be triggered 7 days after this threshold has been met (whenever that maybe). He also stressed that before making the deposit “Check, double-check, triple-check the deposit contract address before sending any funds anywhere”.
The 16,384 validator is equivalent to a total deposit of 524,288 ETH. As of writing, the deposit contract is now at 42,277 ETH or $19,433,045.82 in value.
The launching of Ethereum 2.0 is one of the most anticipated crypto top tech trends to watch out for in 2020. This will definitely have a significant effect on the price of Ether. Analysts expect Ether to outperform Bitcoin in the coming days. This opens another opportunity for investors in the crypto market.
We will be expecting more blockchain technology that will be introduced soon especially in the coming years. Blockchain technologies will bring more benefits and an opportunity for investments not just in the crypto world but also for everyone. With the rise in the number of adoptions, we will also expect a growth in the number of investors that will invest in blockchain projects. Blockchain innovations will also mean more efficient services for those who will adopt the technology.