Enough Speculation as Ethereum 2.0 is Set to Launch in September

Enough Speculation as Ethereum 2.0 is Set to Launch in September

There is a possibility that Ethereum’s move to proof of stake might still be at the docks. Preston Van Loon, the Ethereum core developer, announced to a panel that the move would enter its final stages in the next three months. He said that September was the most reasonable timeline for the move. Justin Drake, a member of the panel, added a strong desire to make it happen by September. Justin and Preston have constantly referenced the “difficulty bomb” by this; they are referring to an event known as The Merge.

A Merge is an event where the proof-of-stake beacon chain is merged with the existing Ethereum blockchain. Hence, the Ethereum network will shift from mining-based to staking-based. A mining-based network is run by individuals with supercomputers of high processing powers to earn Ethereum. On the other hand, staking is where Ethereum users deposit the coins and earn rewards.

It is important to note that the core developers didn’t choose September randomly. Ethereum Core creators in May agreed not to renovate the network to delay the Merge that will begin to vitiate the network. The Merge is a constituent inside the blockchain that slows down the network deliberately. Its main intention was to fuel the move for proof of stake from developers and ensure miners find it challenging to remain behind once the action was initiated. Though it is still in the testing phase, Ethereum Core developers have chosen to give it all the attention. If completed smoothly, The Merge would render the difficulty bomb useless.

Both proofs of work and evidence of stake ambitions are to make sure the network is not only safe but also decentralized. However, proof of stake offers more advantages than proof of work. Proof of stake, for example, uses significantly less energy while at the same time making it easier for individuals to run a network. Therefore, proof of stake is more secure and decentralized than proof of work. However, the main reason why Ethereum holders across the world are waiting for the Merge is that it reduces Ethereum issuance by up to 90%. Less issuance means the demand outweighs the supply; thus, the coin’s price skyrockets. Currently, data from CoinMarketCap shows that a single ETH coin is worth about $2,000. The Merge is expected to take Ethereum to its highest price, surpassing its cost of $4,891 in November 2021.

Signs of proof of stake could be seen as early as December 2020, during the completion of Phase 0, referred to as “Ethereum 2.0”, which is a set of renovations to scale the network and make it safer. However, at that time, it was simply a beacon chain. It was a network with proof of stake, but one that could not be relied on to do anything. Therefore, holders can only lock their Ethereum coins into it with hopes of future promises of profits; however, The Merge will change that.

Ethereum 2.0 is not the last upgrade of the network. One huge component of Ethereum 2.0 is sharding; a strategy that allows the Ethereum network to be subdivided into several chains. According to the Ethereum Foundation, authenticators will only be required to run data for the entity (shard) they are validating instead of validating the whole network. The foundation adds that this strategy will significantly and immediately reduce hardware requirements.

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