Ethereum 2.0 is getting ready: Users deposit 15 million dollars – in just 40 hours

In October, some concerns were expressed that Ethereum 2.0 (also known as ETH 2.0 or Serenity) will not be on the market in 2020. Danny Ryan, a researcher at the Ethereum Foundation, believes that a security audit could delay the launch of ETH2 by several weeks.

The launch of the update was still expected in November a few months ago. There was a lot of confusion in the room in this regard, as just a few days before Ryan’s comment, a ConsenSys developer said that the launch of ETH2 was planned for late November or early December. At the beginning of the year, developer Afri Schoedon also commented as follows:

„The Ethereum 2.0 beacon chain will launch in November unless we find serious bugs in the clients or in the protocol. I stand here with my assessment between Vitalk and Justin. I don’t think we need to postpone Ethereum 2.0 until 2021 unless we find critical problems. We are well on the way to a market launch at the end of 2020“.

Some felt that a further delay would delay this important upgrade, which marks the transition from a „second-generation block chain“, a neo-block chain that uses new technologies to improve usability.

Fortunately for Ethereum’s investors, ETH2 was finally confirmed for 2020, removing almost all uncertainties. Although not set in stone, many have great confidence in its introduction due to the extensive security testing and development that has taken place for this Ethereum upgrade.

There has also been overwhelming public support for Ethereum 2.0, both economically and in terms of sentiment.

Deposit contract for Ethereum 2.0 gains traction

Since ETH2 is technically a different block chain than „ETH1“, a deposit agreement must be concluded so that the value can flow from one to the other.

Vitalik Buterin, the founder of Ethereum, confirmed the approval of the contract on Twitter just under two days ago.

The contract has since been made available on Ethereum and has received around 15 million dollars of the leading crypto currency in 1,150 transactions. This means that investors are willing to operate at least 1,000 validators running ETH2.

The validators are virtually the miners of this new network. It is remarkable that Vitalik Buterin has contributed 3,200 ETH (over $1,000,000) to the deposit contract.

At Buterin’s address (one of the few he knows of), 2.5 million dollars of the leading crypto engine currency as well as tokens worth more than 1,000,000 dollars remain.

Those who deposit the money can earn income with their ETH if they process blocks correctly, provided that the upgrade officially goes into operation on probably 1 December.

Economic concerns

Although staking is seen as a strong advance for Ethereum and the block chain technology as a whole, it is not clear whether this scheme makes economic sense compared to mining.

In July, Tanner Hoban and Thomas Borgers, senior manager and director of ConsenSys, published a medium article entitled „Ethereum 2.0 Economic Review“. In it, they pointed out that the volatility of the ETH Prize could pose a risk to the security of the ETH2 chain.

The analysis also points out that around 13.8% of all ETHs in circulation need to be staked to achieve the security that the Ethereum network has with mining – which could compress rewards and reduce staking rates.