Cryptocurrency Eth 2 Deposit Contract acquired sufficient funds to Launch
The Ethereum 2.0 is all set to be launched on Dec 1. On Monday, the Ethereum 2.0 deposit contract, released in November, secured more than 5,40,000 ETH worth over $ 325 million.
The launch will formally begin the second-largest shift of cryptocurrency from a proof-of-work consensus mechanism to a proof-of-stake with a hope that several issues like scalability, will be solved after the launch.
December 1, was decided as a soft date for the launch of Ethereum 2.0 by the Ethereum Foundation, expecting the deposit contract to secure 5,24,288 ETH staked by 24th November. In a 24-hour period more than 1,50,000 ETH were deposited.
The remaining 25% of the ETH required to stimulate the contract was deposited in just four hours. In the past two years, it happened for the first time that Ethereum saw a rise in its price of about 10%, surpassing $ 600 over a period of 24 hours. The starting phases of Ethereum 2.0's development will not affect the existing users and prevailing decentralized applications.
At the launch of Ethereum 2.0, the initial stakeholders will be validators, identical to miners on a proof-of-stake network.
For the purpose of processing transactions and creating new blocks, the validators earn rewards on the network in exchange just like miners. For becoming an Ethereum 2.0 validator, a user is required to stake a minimum of 32 ETH through the deposit contract.
Validators are expected to earn approximately 20% of annualized rewards on their staked ETH, at the outside of the network. At launch, more than 21,000 validators will be assuring the network.
The activation of the beacon chain is the first of all the four phases of the Ethereum 2.0 migration. There are a number of theories on how the crypto markets will respond to the dual blockchain system of Ethereum.
Crypto Business World
CBW - External Analyst