What is Ethereum 2.0? (Release, Roadmap, Phases)

What is Ethereum 2.0? (Release, Roadmap, Phases)

It is no more news that the development team of Ethereum has been working on introducing new infrastructures to enhance the efficacy of the world’s first programmable blockchain. As the world awaits the implementation of the first phase of Ethereum 2.0, it is vital to understand the rudimentary of this enormous series of updates and how they all come together to establish an improved Ethereum ecosystem. Therefore, this article is a comprehensive Ethereum 2.0 guide that explores all of the core upgrades slated for the next couple of years.

As its name implies, Ethereum 2.0, also known as Eth2 or Serenity, is an enhanced version of the current Ethereum blockchain projected to do away with recurring limitations while highlighting strengths. And seeing that the most documented shortcoming of the existing Ethereum network is the lack of scalability, the development team has adopted a plan to implement more robust infrastructures and increase the transaction speed. Currently, the Ethereum blockchain can only process a maximum of 15 transactions per second. As such, network congestion and high transaction fees are recurring issues, especially now that Ethereum has become the primary hub for the emerging DeFi news landscape.

In light of this, the plan is to tweak the working principle of the network in such a way that it is robust enough to accommodate 10,000 transactions per second. However, as exemplified by the designs and upgrades scheduled to go live starting from the closing weeks of 2020, it is not enough to solely focus on scalability at the expense of security and decentralization. The Ethereum network prides itself as one of the most decentralized and secure blockchain systems available today. And it is hellbent on maintaining this status. Hence, Ethereum 2.0 hopes to find a balance between scalability, security, and decentralization. Due to this philosophy, the core changes anticipated are the transition from the Proof-of-Work (PoW) consensus model to the Proof-of-Stake (PoW) system and the introduction of sharding, which somewhat means multiple parallel channels working synchronously.

While these upgrades may seem straightforward on paper, they require a myriad of fine tuning and overhauling. As a result, Ethereum 2.0 is a sequential array of updates divided into four phases and projected to last until 2022. Nonetheless, note that the launch dates for each stage are not set in concrete. Below is the Ethereum 2.0 roadmap and a quick highlight of the projected changes to expect.

Known as the foundational process of eth2, Phase 0 sets the stage for the transition from PoW to PoS. Note that Ethereum currently utilizes the highly secure PoW, also known for its power consuming and unscalable consensus model where miners create new blocks and contribute to the validation process. For Ethereum 2.0, this model will give way to the scalable and less power-demanding PoS system. To achieve this, the development team will launch what it calls the beacon chain. In the future, this core chain will ensure that there is consensus maintained across all the parallel blockchains running on the Ethereum ecosystem. However, in Phase 0, the beacon chain will majorly function as a coordinating and registering system for validators and staked coins. In other words, this upgrade will usher in the PoS consensus mechanism.

Here, users interested in actively participating in the validation process will have to stake 32 ETH to qualify to be picked as validators and earn rewards for ensuring that the network is secure. To maintain a decentralized network, Eth2 requires a minimum of 16,384 validators. It is worth mentioning that it is impossible to withdraw the staked coins, at least not until phase 1.5 goes live. If everything goes to plan, expect Phase 0 to launch before the end of 2020. Like every staking-powered blockchain available today, validators must ensure that their nodes are online 24/7. Those who fail to do so may forfeit their staked coins as a penalty. Thus, individuals could join staking pools or opt for services that will take care of the technical requirements of Ethereum’s PoS consensus system.

Phase 1, expected to go live sometime in 2021, will serve as the implementation process of the shard chains, designed to run as interconnected blockchain that will share the load on the Ethereum ecosystem. Once these shards are fully functional, all nodes will only have to download the transaction history of a subset of shards to engage and execute transactions on the Ethereum network. This approach is less cumbersome than the current design that requires nodes or clients to download the history of the entire network. In Phase 1, expect a total of 64 PoS-enabled shards. However, they will not support smart contracts and accounts at this time.

Also projected for 2021 is phase 1.5, where the current Ethereum 1.0 chain will transition into a shard and henceforth utilize PoS as its supported consensus mechanism. In other words, mining will come to an end, and only PoS validators will see to the day-to-day validation needs of the Ethereum ecosystem.

This is the last stage of the planned Ethereum 2.0 upgrade. Phase 2.0 will usher in fully functioning shard chains. In essence, these chains will start supporting accounts and contracts and, at the same time, communicate seamlessly. Once this phase launches, we would have completed the Eth2 upgrade and have a working ecosystem with the infrastructures needed to establish a decentralized, scalable, and secure blockchain network. Nonetheless, there is no saying when to expect the implementation of this final phase. Most of the people involved in this project believe that Ethereum 2.0 will be completed in 2020.

All the integrations and upgrades slated to go live from the first phase of Ethereum 2.0 will have no noticeable effect on the operations of users. The team has ensured that all additions to the current mainnet are compatible with existing infrastructures. Hence, you, as a user, do not need to download a specialized tool to continue to access the Ethereum network. Besides, there is no plan to create a new cryptocurrency. ETH will remain the native coin of the blockchain despite the transition to Ethereum 2.0. Therefore, beware of platforms, ads, and campaigns encouraging users to deposit ETH to receive ETH2.0. Such entities are fraudulent and plan to rob unsuspecting users of their funds.

Also, some believe that these implementations would have a positive effect on the price of ETH while reducing transaction fees and increasing network engagements.

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Source: otcpm24.com

Author: News Bureau


Ethereum Faces “No Resistance” Until $800, Signaling Its Rally is Just Starting

Ethereum Faces “No Resistance” Until $800, Signaling Its Rally is Just Starting

Ethereum has been struggling to break above $600 throughout the day, with the selling pressure proving significant.

Each break above this level has caused it to see inflows of selling pressure that have slowed its growth and caused it to see slight rejections at this level.

One trader is noting that $600 is the last key resistance level until $800, with a sustained break above this level likely leading ETH to see gains of 30% or more in the days and weeks ahead.

This would allow the cryptocurrency to fully erase its trend of underperformance against Bitcoin that has been plaguing the ETH/BTC pair over the past few weeks.

It could also further fuel the second wave of DeFi hype driving this fragment of the market higher over the past few days and weeks.

Ethereum is in the process of breaking above its last key resistance level, with the selling pressure found at $600 proving to be quite significant.

At the time of writing, ETH is trading up just under 6% at its current price of $590. It has made multiple attempts to break above $600, with each one resulting in serious inflows of selling pressure.

If it rejects this level, it could see a prolonged consolidation phase before it can advance higher.

The selling pressure here may continue hampering Ethereum’s price action in the near-term, but once it is shattered, the crypto may see its next leg higher.

While sharing his thoughts on where Ethereum might trend in the near-term, one analyst explained that once $600 breaks, there’s virtually no resistance until $800.

“I repeat, there is no resistance on ETH from here until $800, literally nothing, that is all.”

Ethereum

Image Courtesy of @Smartcontracter. Source: ETHUSD on TradingView.

The coming few days should provide serious insights into where the aggregated market will trend next.

If Ethereum can post a high time frame close above $600, it could see some immense momentum and extend its ongoing parabolic rally.

Source: icryptodesk.com

Author: admin


3 reasons Ethereum’s momentum is only accelerating as ETH nears $600 – BITCOININNEWS.COM

3 reasons Ethereum’s momentum is only accelerating as ETH nears $600 – BITCOININNEWS.COM

Alongside the high anticipation for Ethereum 2.0, the high time frame breakout and daily gas usage on Ethereum remain key positive factors.

The Eth2 mainnet will launch when the number of Ether (ETH) staked in the Eth2 deposit contract address hits 524,288.

Data from CryptoQuant found that the value staked in the Eth2 deposit contract address is showing a correlation with the ETH price.

Ki Young Ju, the CEO of CryptoQuant, noted that the correlation is seemingly growing as the launch date approaches. He wrote:

“As the ETH 2.0 launch date approaches, it seems to be a growing correlation between $ETH price.”

This trend has been anticipated by analysts because of the significance of Eth2. When activated, Eth2 is expected to improve the transaction capacity of the Ethereum blockchain network.

Since nearly $300 million worth of ETH would get deposited into the Eth2 deposit contract address, it could also decrease the selling pressure on ETH over the long term.

The price of ETH broke above $500 for the first time since May 2018, breaking out from a two-year range. It has already risen above $580 since, demonstrating strong momentum and with little resistance above $620.

What cryptocurrency will become the main one in a year?
BitcoinEthereum

If ETH surpasses $620, the next high time frame resistance levels are found at $784, $915 and $1,200.

Traders expect ETH to hit $620 in the short term and possibly consolidate under it until the next breakout occurs.

A pseudonymous trader known as “Rookie” said ETH could hit $620 in a matter of days, as it shows strong technical momentum.

Although both Bitcoin (BTC) and ETH prices pulled back during the weekend, analysts say that TWAP algorithms could cause the momentum to resurge once again. Qiao Wang, a quant trader and analyst, wrote:

“The reason why weekends exist is to shake out the weak hands before institutional buyers turn on their TWAP algos again on Monday.”

According to on-chain data from Etherscan, the daily gas usage on Ethereum is hovering at an all-time high.

The term “gas” refers to transaction fees on the Ethereum blockchain network. When gas usage is high,  the on-chain user activity is rising.

The increase in daily gas usage likely comes from two sources: deposits to the Eth2 address and growing number of decentralized finance, or DeFi, users.

Source: www.bitcoininnews.com


Ethereum (ETH) Clears $600, Making A Retest Of All-Time Highs Imminent – Crypto Money Daily

Ethereum (ETH) Clears $600, Making A Retest Of All-Time Highs Imminent – Crypto Money Daily

Bitcoin price reaching prices near $20,000 has diverted incoming capital toward altcoins once again. Ethereum had been feigning signs of weakness, but instead was gearing up enough strength under the radar to make a similar-sized push as Bitcoin.

And investors are doing just that. Ethereum and other major altcoins are posting larger gains than Bitcoin itself.

600 eth600 eth

The ongoing crypto market rally has pushed Ethereum as of this morning past the pivotal $600 mark. The level is the first area in a series of four weekly resistance zones.

ethusd weekly ethereumethusd weekly ethereum

Price action is rapidly approaching all-time highs, with very little price action above current levels | Source: ETHUSD on TradingView.com

At this rate, and given the sudden revival of interest in the cryptocurrency market, a retest of both Bitcoin and Ethereum’s all-time highs could very well arrive sooner than later.

Things are undeniably overheated, but conditions are unique in the fact that the dollar is breaking down, and hard assets like crypto are especially bullish in such situations.

How far will this one Ethereum rally go?

Featured image from Deposit Photos, Charts from TradingView.com

Source: cryptomoneydaily.com


What is Ethereum 2.0? (Release, Roadmap, Phases)


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