- Ethereum 2.0 is set to go live on 1 December, earlier from its previously announced date
- Vitalik Buterin, the Ethereum’s creator, announced the launch of the Ethereum 2.0 deposit contract through Twitter
- Crypto market observers feel that Ethereum 2.0 can outstrip the bitcoin in terms of price-performances
The next-generation version of the Ethereum blockchain, which has been in the works for many years, is set to go live on 1 December 2020.
The newly launched Ethereum 2.0, which was originally slated to go live on 3 January 2021, will see the blockchain go from a Proof-of-Work (PoW) version to a Proof-of-Stake (PoS) version that will enable participants to tie their cryptocurrency to the network as a deposit.
For more clarity, in a PoW system, one component of computational power connects to one component of mining power. While in PoS, one component of value acquires one component of mining power for the validator. The PoW and PoS systems are devised to incentivize the protection of the network and safeguard the data kept on the blockchain.
Vitalik Buterin, who is the creator of Ethereum, announced the launch of the Ethereum 2.0 deposit contract through Twitter. Commenting on the launch, Buterin said that the newly launched deposit contract would continue to draw people's attention.
In order to ensure that the Ethereum 2.0 launch will be effective, nearly 16,384 validators will need to stake at least 32 ether (the cryptocurrency supporting the network), which is valued at $12,800 at existing market rates.
Once that minimum amount has been put into the bet, that will activate the release of the base, also known as beacon chain, that will enable the switch in the Ethereum 2.0 debut event.
Vitalik has reportedly sent 100 transactions for 32 ether each, all in totalling 3,200 units, worth around $1.4 million for staking on the next iteration of the blockchain network.
He commented that the deposit contract would continue to attract people, as the stakers pull their coins from the vaults, and are sure about the tools and convinced that it works and they are not wasting their coins.
Joe Lubin, the co-founder at Ethereum and the chief executive officer at ConsenSys, said the company had strengthened Ethereum 2.0 with virtual test ecosystems, formal authentications and audits.
He added that the firm is happy to see the community getting excited around the first stage of Eth2, now with real value at stake.
Ethereum 2.0 will be releasing out in stages over the next few months, and the launch of the Beacon Chain is an essential first move that will set the stage. In August this year, there was a testnet launch, called Medalla, a sort of multi-client practice session for phase 0 launch of Eth2's operation.
Will it outperform bitcoin?
With the launch of Ethereum 2.0, many industry analysts believe that it could outstrip the bitcoin. Amsterdam-based trader feels that there are chances that ETH/USD prices would substantially gain when ETH 2.0 will be officially be released.
The trader, however, said that the region with about $438 price mark is going to be the crucial resistance point. As soon as the cryptocurrency covers this hurdle, the route will be open for ETH to take $440 and price levels beyond this point.
Similarly, a well-known cryptocurrency market expert and trader Josh Rager believes that Ethereum 2.0 is going to outpace bitcoin in terms of price-performance once it would go live.