Your favorite crypto news blog

Ethereum 2.0 Contract Reaches 100,000 ETH Milestone

Altcoins 2021/06/25 01:45 by Best Owie

A recent post on CryptoQuant by TemptingBeef has confirmed that the number of staked Ethereum on the ETH 2.0 deposit contract has now exceeded 100,000. This means that the number of staked ETH is now more than 5% of the amount of Ethereum that is currently in circulation.

Chart of staked Ethereum reaching 100k

Chart showing the amount of staked ETH over time | Source: TemptingBeef on CryptoQuant

ETH 2.0 has been in the pipeline for a number of years now. Hopes were that an Ethereum proof of stake would be unveiled in 2020. But developers want to make sure that the network was completely safe before they rolled it out. Users wait in anticipation for the announcement of release dates as it looks like the release will be delayed again due to it not being ready yet.

People Are The Reason For The Delays

According to Ethereum’s founder Vitalik Buterin, the biggest problem causing the delays with ETH 2.0 has not been technical problems of any kind. But have been the people working on it.

The CEO pointed out that the project is ravaged by internal conflicts. Leading to delays in finishing up the project.

Related Reading | Cardano Founder: Ethereum Will Overtake Bitcoin

The ETH 2.0 is a response to the growing criticism of the power consumption of the proof of work systems used by coins like bitcoin, with the blockchain requiring miners’ computers to solve complex mathematical problems to approve transactions. This requires high computing power from computers. Which translates to high energy consumptions by the mining operations.

Ethereum 2.0 is going to reduce network fees and increase transaction speeds. This will be done by providing scalability to the Ethereum network. It is also expected to use 99.95% less energy than proof of work protocols like the bitcoin blockchain.

This is a staggering number when compared to the amount of energy that mining currently uses. It is estimated that bitcoin currently uses more energy annually than entire countries like the Netherlands and Argentina.

It is no surprise then that there is a rush to find more energy-efficient ways to mine cryptocurrencies. Mining activities are a big concern when it comes to the pollution created by fossil fuel-based energy consumption.

Ethereum chart from TradingView.com

Ethereum trading below $2,000 as ETH 2.0 hits milestone | Source: ETHUSD on TradingView.com

The anticipated move from PoW to PoF with ETH 2.0 has been further delayed to 2022. Expectations were that the transition would be done this year. As was announced back in 2020. But it seems that investors will just have to wait another year for the move.

Benefits Of Ethereum 2.0

Ethereum 2.0 is going to eliminate the bottlenecks that are currently present in the network. Things like high gas fees during high traffic hours will be eliminated. Transactions will be faster regardless of how congested the network is. And faster transaction speeds means fewer network congestions.

It will also increase the security in the network. Providing more scalability and throughput.

But the primary advantages lie in the energy efficiency of the network.

The first part of the ETH 2.0 is the Beacon Chain, which is currently live now. This is what allows users to stake their coins for new ETH rewards.

Related Reading | Ethereum to $20,000? Factors Behind The Bold Call

The Merge will come after this. This is when the main net merges with the Beacon Chain. This is estimated to happen in 2021. But for now, there are no definite dates given for when this will happen.

Finally will come the shard chains. It will enable Ethereum to process more transactions. And it also increases the capacity of the network to store data.

Shard chains will gain more features as time goes on. These features will be rolled out in multiple stages.

As for holders of Ethereum, rest assured that their coins will be safe in the move from ETH 1.0 to ETH 2.0. All of the data history, transaction records, and asset ownership of ETH coins will remain. Just that new transactions will be carried out on the new network.

Featured image from Bitcoin Market Journal, charts from CryptoQuant, TradingView.com

0 Like(s)

You should also read...

Crypto 08/06/20 16:23 by Suny Rain
Justin Sun talk about TRON 4.0
Justin Sun, who is that guy? In a few words : Justin Sun is the founder of TRON. He is really active in Twitter, mostly talking about TRON but he is still active in the developpement of the TRON p...
Read More
Altcoins 03/07/21 01:00 by Best Owie
Ethereum Upgrades Could Jumpstart $40 Billion Staking Industry, JP Morgan
Ethereum upgrades could jumpstart a $40 billion staking industry, according to a JP Morgan report. JP Morgan estimates that the staking industry is currently worth $9 billion and that this number coul...
Read More
Altcoins 05/07/21 21:30 by David Kariuki
Over 6 Million ETH Staked On Ethereum 2.0 As Interest Skyrockets
Excitement is building over the upcoming Ethereum upgrade and a total of 6.1 million ether have so far been staked on the Ethereum 2.0 network, putting the value of the staked coins to $13.6 billion ...
Read More
Altcoins 07/07/21 19:00 by Best Owie
Swiss Bank Sygnum Launches Ethereum 2.0 Staking
Sygnum, a Swiss-based bank, has recently revealed that it will begin offering customers access to Ethereum 2.0 staking through its banking platform. This would make the bank the first bank to offer ET...
Read More
Altcoins 13/07/21 19:00 by Best Owie
Cardano (ADA) Demand Rises Amongst Retail And Institutional Investors, Why This Is Happening
Recently, both institutional and retail investors have shown an increasing interest in Cardano. It is fast becoming the coin of choice for investors who are in crypto for the long term. Good news trot...
Read More