Connect with us

Ethereum 2.0

On the first anniversary, the Ethereum 2.0 Beacon Chain solidifies the proof of interest change

Published

on

The Ethereum community is celebrating the first anniversary of the Ethereum 2.0 Beacon Chain, which set the network’s roadmap towards Eth2 with its launch on December 1, 2020.

According to data aggregator Staking Rewards, Ethereum 2.0 is now the second largest capitalization betting proof network with $38.4 billion in stakes.

While Solana currently leads with nearly $88.2 billion, 77.4% of SOL’s supply is locked in bets compared to just 7.10% for Ether. Many analysts believe it’s only a matter of time before Ethereum rises to the top. Ethereum’s next chain fusion is expected to increase betting rewards by several multiples.

Advertisement

The path to Eth2

Since launching the Beacon Chain last year, Ethereum has completed several major updates to its Eth2 roadmap and changed its evidence of participation consensus.

In April, Ethereum’s Berlin hard fork was successfully executed, raising prices to what was then a record above $2,200. The Berlin Update covered four Ethereum Improvement Proposals (EIPs), including measures to reduce costs associated with specific transactions, simplify processing and group multiple transactions into a single transfer, and increase expenses associated with the Denial-Of-Service (DoS) launch ) attacks.

Although Berlin was seen as having little impact for the typical Ethereum end-user, the update paved the way for the next Ethereum update, London

Advertisement

London Upgrade

The London updates went live in August, releasing five EIPs designed to reform the Ethereum rate market.

The most notable EIP contained in London was 1559, which introduced a base rate that is burnt along with a tip to miners for every transaction performed on the Ethereum. According to Ultrasound Money, nearly 1,088M Ether (almost $5B at current prices) has been destroyed since 1559 went into operation, creating significant deflationary pressure on Ethereum supplies.

London also contained EIPs designed to reduce Ethereum gas price volatility.

Advertisement

Altair Upgrade

The latest Ethereum update, Altair, went live in late October, pushing prices to new highs above $4,400.

Unlike Berlin and London, Altair’s updates were made to the Ethereum 2.0 Beacon chain, introducing the first changes since it went live in December 2020.

In an interview with CNBC, Ethereum developer Tim Beiko described Altair as testing whether the Beacon chain “works correctly” and paving the way for its next chain merge with the existing Ethereum network.

Advertisement

“This shows that we are able to update the PoS engine, and that’s a pre-condition for next year’s migration,” he said. “That means there’s a slightly greater chance that things are going well for the transition. [Eth2] in the next year.”

Altair has also enabled support for validators that use “light clients,” including the operation of low-powered devices such as cell phones, in a proposal to allow for broader participation and increased slashing penalties for validators that misbehave or fall apart. offline.

The Merge

Looking to the future, the Ethereum community is looking forward to merging the existing network with the beacon network.

Advertisement

The merger will abandon the Proof of Participation consensus, transferring all transaction validation to the beacon chain and stakers. With the merger set to end the Ethereum bloc’s rewards and reduce emissions overall, many analysts are predicting that even greater deflationary pressure will be placed on the Ether markets.

While no firm date is set for the merger, Beiko recently estimated that the update could ship during the second quarter of 2022.

Read also: Cardano frustrates market with DEX launch: ADA drops 7%

Advertisement

Read also: Check out the five cryptocurrencies that appreciated the most in November

Also read: Bside Games announces Beta version of its metaverse for December

News Source

Advertisement