Rush for Ethereum 2.0: ETH community is euphoric
Ethereum (ETH) 2.0 Phase zero has started. The upgrade marks the beginning of new capital for the ambitious block chain project – the crypto community is euphoric and everyone wants to participate.
The biggest upgrade in Ethereum history went as planned. After years of work, the Genesis block of the ETH 2.0 Beacon Chain has finally seen the light of day. So far, the update has gone without problems and Bitcoin Trader the participation is enormous.
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The biggest change in Ethereum 2.0 is the introduction of the proof-of-stake (Pos) mechanism. PoS aims to provide a more energy efficient method of securing the block chain network. Validators pay ETH in a Staking Contract and receive a Staking Reward for their services in the form of ETH.
Ethereum 2.0 a blessing for Decentralised Finance?
The launch of the Becon Chain has been celebrated by Vitalik Buterin on Twitter. The inventor of the Blockchain project congratulated all participants and is optimistic about the future of ETH 2.0. The Beacon Chain is intended to take the total number of possible transactions to the next level.
Especially in 2020, many developers in the Decentralised Finance (DeFi) area have seen what it means to develop decentralised applications (dApps) on Ethereum. These developers in particular hope that a solution will finally be found to the problem of relatively high transaction fees.
ETH 2.0 is here and everyone wants to join
The anticipation of the big upgrade has been building up throughout 2020 and is reflected in the Ethereum course. At the beginning of the year, the exchange rate was still at 130 US dollars and currently the rate is scraping against the 600 US dollar mark.
For ETH 2.0, tens of thousands of ETH owners around the world have stocked up on 32 Ethereum, as these are necessary for staking. But also the big ones want to join in and Coinbase, has already announced that it wants to support ETH staking. This makes it possible to participate in staking even without owning 32 ETH. In return, however, one must trust the crypto stock exchange.
Binance also wants to offer a staking service. The announcement was made one day after Coinbase announced its plans. Furthermore, not only a staking service should be possible, but also trading between the original ETH token and the Ethereum 2.0 token. In addition, Binance will offer a double reward programme between 2 and 16 December for all Stakers who have completed comprehensive Know-Your-Customer (KYC) verifications.
However, there are decentralised staking alternatives. The Rocket Pool project, for example, allows staking with less than 32 Ethereum. Investors do not have to trust a central party, but the whole thing works via smart contracts that manage the investors‘ money and use it for staking.
It is still unclear to whom the investors will entrust their money in the future or whether they prefer to take their Ethereum into their own hands to participate in staking.