The Ethereum 2.0 Beacon Chain is officially launched tonight, and Coinbase will provide ETH 2.0 transactions
Editor's Note: This article comes fromBabbitt Information (ID: bitcoin8btc), Author: Overnight Porridge, published with authorization.
Editor's Note: This article comes from
Babbitt Information (ID: bitcoin8btc)announcement, Author: Overnight Porridge, published with authorization.
After exceeding the deposit target, the Ethereum 2.0 beacon chain will be officially launched at 20:00 on December 1, Beijing time, which marks that the first step of the Ethereum 2.0 mainnet is about to land.
announcement
It said that it will participate in the pledge of Ethereum 2.0 instead of users and support the transaction of new coins, which means that Coinbase users will be able to convert their ETH into ETH 2.0 with one click and get Staking rewards. Coinbase mentioned in a blog post:
“While staked ETH 2.0 tokens remain locked on the Beacon Chain, Coinbase will still support transactions between ETH 2.0, ETH, and all other supported currencies to provide liquidity to our customers.”
It is reported that Coinbase will launch the above functions to customers in eligible jurisdictions in early 2021.
secondary title
Participating in the problems faced by Ethereum 2.0 staking, and the rise of exchange hosting solutions
In fact, when a user pledges his ETH to the Ethereum 2.0 network, he cannot transfer his 2.0 ETH, nor can he redeem it to the ETH 1.0 network, which needs to wait for the second phase of Ethereum 2.0 to land To be able to circulate, according to the developer's estimate, it will take about 2 years.
And this long-term lock-up rule also inhibits the enthusiasm of investors to participate in Ethereum 2.0 pledge.
However, in theory, large service providers such as exchanges can participate in Ethereum 2.0 Staking instead of their users. Although these service providers cannot transfer the pledged 2.0 ETH, they can circulate in the internal database to form an isolated trading market. Provide liquidity to users. What these service providers need to do is to regularly take snapshots of 2.0 ETH holders and then distribute rewards.
Obviously, by doing this, service providers such as exchanges can attract a group of users’ ETH and bring them more income.
The announcement made by Coinbase is expected to bring a demonstration effect, leading to more exchanges (such as Binance, Huobi, OKEX, etc.) to provide similar services.
What will happen after that?
This could cause the prices of the 2 ETHs to diverge, here are 3 possible scenarios in the short term:
Traders who don't know the truth choose to buy ETH 2.0 directly in the market, causing the price of ETH 2.0 to be higher than ETH 1.0 in the short term. 2.0 currency price hits the same level as ETH 1.0;
The buying demand and selling demand are balanced, resulting in the ETH 1.0 currency price being equal to the ETH 2.0 currency price;
Since the liquidity of the 2.0 market is much smaller, the market selling demand is greater than the buying demand, which will cause the price of ETH 2.0 to be slightly lower than that of ETH 1.0;
Staking services provided by large exchanges will damage the decentralized nature of Ethereum 2.0
What do you think?
