Eth 2.0 is Live; Network Difficulty Hits an All-Time High While Gas Price Is On An Incline
ETH 2.0, Phase 0 — the Beacon Chain has been finally launched.
The next-generation of Ethereum has been rolled out this week, representing the first step in Ethereum’s transition from a proof-of-work (PoW) into a proof-of-stake (PoS) network.
Ethereum community released the Eth PoS chain's first block with the message, “Mr. F was here.”
This upgrade aimed to increase the network capacity and lower the fees is a “very bullish” development for the second-largest network and all things DeFi. Joseph Lubin, the co-founder of Ethereum and the founder of ConsenSys, said,
“The launch of the Eth2 Beacon Chain is characteristic of the emergent, open-source ethos that attracts so many to Ethereum in the first place.”
Currently, more than 27,000 validators from all over the world are participating in this new consensus model that Lubin called a “monumental” upgrade for the network that is already “functioning as the global settlement layer for ~$1 trillion in digital assets on the decentralized web.”
— Ethereum (@ethereum) December 1, 2020
However, independent researcher Hasu argued that though an important milestone, this is just a step on the road to ETH 2.0.
It “can do none of what we typically associate with a blockchain, let alone one as powerful as Ethereum. even calling it a testnet would be overselling. it's way too early for victory laps,” he added.
This is just a one-way deposit contract, and those who have staked their ETH won’t be able to unstake them until the next phase. As such, projects like Lido and cryptocurrency exchanges like Coinbase have announced support for BETH's staking and trading. Acknowledging this, Lubin said,
“while scalability won't change overnight, the community is proving that with the right engineering and incentives, Ethereum is on the path to be even more decentralized and secure today.”
While the daily gas used is keeping around its top, the average gas price also jumped today to about 80 Gwei, as per Ether scan.
Unlike all these metrics, the price of the digital asset took a beating around the launch. Today, ETH has ranged between $636 and $560. Before the event, the market has been uptrending and end up actually selling the news. But the number two cryptocurrency is rebounding, currently at $618, a 3.19% increase in the last 24 hours.