Will Ethereum 2.0 start a bull market?
Editor's Note: This article comes fromHoneycomb Finance News (ID: fengchao-caijing), Author: Kyle, reproduced by Odaily with authorization.
Editor's Note: This article comes from
Honeycomb Finance News (ID: fengchao-caijing)
Honeycomb Finance News (ID: fengchao-caijing)
, Author: Kyle, reproduced by Odaily with authorization.
The deposit contract is like the first open door to the world of Ethereum 2.0. Pledgers participate in the genesis by depositing ETH, which can also be regarded as long-term investment to some extent. After all, this gate is only allowed to enter and not to exit at this stage, and the deposited Token will become a part of the "Beacon Chain".
The beacon chain is the core of Ethereum 2.0. It can be understood as a "PoS system". It is more like a "supervisor" and is mainly responsible for verifying data from the shard chain. In the future, the current Ethereum PoW main network will also be integrated into the 2.0 network and become one of the shards or main storage contracts.
Ethereum 2.0 has gradually been placed in the expectation of a bull market "booster" by market investors. When BTC broke through $15,000 half a year after halving, people hope that ETH can continue to play the role of accelerator it played in the last round of bull market.
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Genesis startup progress bar up to 10%
The Ethereum 2.0 "Genesis Project" is in full swing. According to Okey Cloud Chain data, as of 3 pm on November 11, the ETH 2.0 deposit contract address has 52,993 ETH. According to the specification, a minimum deposit of 524,288 ETHs is required to start the Beacon Chain of Ethereum 2.0, and 10.1% of the total demand has been completed.
On November 4th, Danny Ryan, a researcher at the Ethereum Foundation, announced the "Genesis Plan" on the official blog. He released the "eth2 v1.0 specification". The core information is the announcement of the deposit contract address (0x00000000219ab540356cBB839Cbe05303d7705Fa). Users who store at least 32 ETH at this address can become one of the verifiers for Genesis to launch Ethereum 2.0.
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Ethereum Foundation Announces 2.0 Network Launch Rules
Storing ETH into this contract address, in addition to participating in the historical significance of the launch of Ethereum 2.0, can also be regarded as a long-term lock-up investment.
According to the real-time calculation of the ETH 2.0 income calculator, the annual interest earned by participating in the "Genesis" pledge storage will be 14.09%. If the lower limit of 32 ETH is deposited, the total principal and interest will be 36.5 ETH after one year. According to the current currency price of 459.58 US dollars It is estimated that the annual income is about 2072 US dollars. This pledge allows compound interest, the longer the pledge, the higher the income may be obtained.
Officially set December 1st as the initial time for the creation of ETH 2.0. However, the premise of the start is that the amount of deposit contract currency can reach 524,288 ETH 7 days before the estimated time; if the amount does not reach the standard by then, the time will be postponed until the target is completed, and the start can be started 7 days later.
At current prices, 524,288 ETHs are worth about $240 million. If you compare the lock-up amount of the top DeFi, this number is not high. Currently, Uniswap’s total lock-up value is $3.1 billion, and Maker’s is $2.2 billion.
It must be noted that the reason why participating in the genesis launch is like a long-term investment is because it is currently irreversible, that is, transferring ETH to the 2.0 deposit contract, and it is a process of "no return" at the moment—user pledge At least 32 ETH will get a "receipt" on the blockchain, which indicates that the pledger is qualified to act as a validator. Once pledged, it cannot be transferred from the deposit contract to the existing PoW chain.
When can withdrawals and transfers be made? This may require waiting for Ethereum 2.0 to fully land, which will take two to three years.
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The beacon chain will "swallow" the current chain
To be more precise, put ETH into the deposit contract address, your Token is no longer the ETH currently circulating in the market, it becomes a part of the beacon chain.
The beacon chain is a brand new blockchain and the core of Ethereum 2.0. As is well known to the outside world, Ethereum will transform from a proof-of-work mechanism (PoW) to a proof-of-stake mechanism (PoS). The beacon chain can be understood as the "PoS system" of Ethereum. Under ideal conditions, this new system can achieve 1000 times scalability.
If all goes well, the beacon chain will become the new Ethereum. Unlike the current Ethereum network, which is "inclusive" of miners and developers, the beacon chain will be more like a "supervisor" in the future, with a very clear scope of responsibilities.
Overseas developer Bruno introduced that there is no data we usually use on the beacon chain - it does not store any information stored on the current Ethereum blockchain, including account balances, token-related contracts, DApp status, etc. wait. It only stores two things: the validator list and Attestation (proof information).
In Ethereum 2.0, the beacon chain is the main chain (Main chain), and based on this, many shard chains (Shard chain) will be born. The shard chain is the place where various applications are born and more information is stored. All shard chains need to report to the "supervisor" of the beacon chain. Each shard must store the hash of the latest state on the beacon chain block and be verified by the verifier. Verification is the process of generating a block.
The launch of the beacon chain is only Phase 0 of ETH2.0. In the next stage, developers will work on making the contents of the shard chain reach a consensus based on the beacon chain, which will be a huge and complex project.
So here comes the question, what will happen to the current Ethereum network after the new Ethereum mainnet gradually matures?
According to the official plan, after Ethereum is completely transformed into a PoS system, the PoW chain will degenerate into a shard or a master archive contract.
As if merged after being swallowed, the PoW chain becomes a part of the auxiliary new system. Once the dynasty changes, the current Ethereum miners will lose the right to speak. Under the PoS mechanism, computing power becomes no longer important.
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After converting to the proof-of-stake mechanism, validators who pledge ETH on Ethereum will become "worker bees" of the network, replacing the role of miners.
For market investors, whether this change can stimulate the demand for ETH and then drive up the currency price is a more important topic. In the last round of bull market, ETH became a rising engine because it met the rigid demand of ICO.
Since the release of the 2.0 deposit contract by the Ethereum Foundation on November 4, more than 50,000 ETHs have been "locked" in this address, and this number will continue to increase in the future until it reaches the 524,288 genesis start standards. From the perspective of market performance, the continuous "deposits" have brought about an increase in currency prices.
On November 4, ETH bottomed out and rebounded after the currency price fell to $374, and it closed positive for several consecutive days. On November 7, ETH rose to as high as $468, an increase of more than 25% in 3 days. As of 3:00 p.m. on November 11, the price of ETH has fallen back to $459, which is still more than 20% higher than the previous low. This stage also coincided with the recent surge in BTC.
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The price of ETH has risen by more than 20% recently
"From the perspective of ETH supply and demand, the demand brought by ETH 2.0 will exceed the previous ICO and DeFi period." Blue Fox Notes estimates that the PoS pledge mechanism will make the ETH pledge amount reach about 30% of the total amount. Currently, in DeFi The ETH pledged in the ecology accounts for about 7.3% of the total circulation.
Another factor that needs to be considered is that after the implementation of Ethereum 2.0, its performance and scalability will be greatly improved. The decentralized application ecosystem at that time will undoubtedly be more prosperous than it is now, and will further expand the demand for ETH usage. In the long run, ETH is expected to bring good returns to holding investors due to increased demand.
