Ethereum 2.0 Finally Set to Launch - Why Is It Important?
Ethereum, which is the second biggest cryptocurrency by market cap, has finally announced the official launch date for 2.0. You might ask, what is 2.0 and why is it a big deal?
Ethereum 2.0 is a long-planned upgrade to the Ethereum network, which is providing scalability that is currently the biggest problem to the network, and on top of that 2.0 also provides security. However, the upgrade also has more positive effects, such as reducing energy consumption by immigrating from Proof-of-Work (mining Ethereum by computers) to Proof-of-Stake, which is a huge change to how Ethereum works.
Proof-of-Stake will allow Ethereum holders to stake, otherworld locking their Ethereum tokens (minimum of 32 Ethereum) in order to gain rewards, which creates scarcity in the market together with higher prices, which we already can see.
The first stage of the upgrade is phrase 0, which is set to take off December 1, 2020. On a practical level, Ethereum holders can now start to deposit funds into the contract, the Beacon chain, which is a new blockchain at the core of Ethereum. The staking reward are set be high compared to other platform, with a rate between 8% -15% annually.
Full report: https://ethereum.org/en/eth2/#updates-from-eth2-research-and-development
Are you buying more Ethereum? Do you plan to stake? Please let me know your answers in the comment below.
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