Once again, the much anticipated Ethereum 2.0 gets a new release date. At this point, Ethereum has had its fair share of ups and downs and the massive update is long overdue. Basically, with the Ethereum 2.0 update, the network will move on to the proof of stake algorithm that will increase performance by a lot. Ethereum has suffered from high gas fees, subpar scalability and subsequently slower transaction times. This is mostly due to hosting record numbers of tokens on the blockchain and using the proof of work algorithm to handle an enormous workload.
The network could seriously benefit from the upcoming upgrade and possibly attract new investors with the 2.0 upgrade. But, the upgrade has been postponed twice so far due to technical difficulties making it one of the most anticipated updates in the history of crypto. Hopefully, the merger will finalize in August according to protocol Preston Van Loon developer Benjamin Cohen.
Hallelujah, we have a date! According to Ethereum protocol developer Preston Van Loon, the Ethereum 2.0 merge to proof of stake is coming this august.
Van Loon answered a moderator in the Permissionless decentralized finance (DeFi) conference regarding the merge. Van Loon said that the highly-anticipated upgrade should be rolling out by August.
“These are just the last few steps we have to take, and as far as we know, if everything goes according to plan, August – it just makes sense.”
The Ethereum network has long been suffering from high gas fees and limited scalability. Furthermore, the wave of criticism toward proof of work has also been gaining traction since last year. Ethereum 2.0 will essentially be the migration from proof of work to proof of stake. However, this is as big as a challenge as it could get. Ethereum is the leading smart contracts platform and ETH is the second largest cryptocurrency by market cap. And yes, the stakes are high for this upgrade.
ETH 2.0 Deposit Contracts
Currently, stakeholders have locked over 12 million Ether into ETH 2.0 deposit contracts. This is worth over $25.5 billion USD. As reported previously, the majority of the capital comes from exchanges and staking platforms.
Lido and Coinbase are still the largest stakeholders of Ethereum 2.0. While the institutional investors have the majority of capital, individual stakeholders are still far outweighed by the big players.
Ethereum is trading at $2,016 at the time of writing this article.
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