BTC grabs the show, Ethereum 2.0 "quiet" starts
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.
Ethereum 2.0 is in full swing for the launch of the beacon chain, and the attention of the currency market has been attracted by BTC.
The bulls stood at the historical high of $19,913, expecting BTC to break through to $20,000, but it turned around and fell to $18,894 at 19:25 Beijing time. This is more than half an hour before the launch of Ethereum 2.0.
At 20:00 on December 1st, the creation block of the beacon chain of Ethereum 2.0 was generated as scheduled. At the right time, the liquidation amount of 419 million yuan on the entire network was even more explosive. Ethereum 2.0 is just like its name at this stage, "Tranquility" set off.
ETH holders are swearing their faith with the continuous influx of mortgages, even if they cannot transfer or trade for at least two years, even if the annualized rate of return will continue to decline.
In the next two years, the Ethereum 2.0 network will continue to evolve, including integrating 64 shard chains to change the congestion situation; introducing virtual machines and smart contracts, and merging the 1.0 main network.
Ethereum 2.0 is embarking on a new journey of "tranquility", and the market is destined not to be peaceful. Before the launch of the beacon chain, affected by the decline of BTC, ETH dropped from $635 to $580, and then rebounded to $615 when 2.0 was launched. The market continued to dive, and ETH fell below $600 again.
It should be noted that before the landing of Ethereum 2.0, there will still be only one ETH token in the market, and investors should beware of related fundraising or counterfeit currency scams.
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Beacon chain genesis block generation
As a pioneer in blockchain network construction, Ethereum has brought endless imagination to the real world since its mainnet launch in July 2015. Smart contracts, decentralized games, DeFi...it paints a picture of decentralized A beautiful blueprint of the world. However, for a long time, due to the lack of its own performance, the speed of network operation has restricted the utopia of Ethereum.
Today, Ethereum is finally taking its first steps into a new era after a long period of planning. Unlike any upgrade in the past, the launch of Ethereum 2.0 is an unprecedented self-innovation, and the Beacon Chain will carry the more ambitious expectations of Ethereum.
At 8:00 pm on December 1, 2020, the Ethereum 2.0 network was officially launched, and the genesis block was born on the new blockchain - the Beacon Chain. Ethereum founder Vitalik Buterin expressed his congratulations on Twitter, saying that everything went well.
Previously on November 4, the Ethereum Foundation announced the world entrance of Ethereum 2.0 for the first time, which is the deposit contract address of the beacon chain. ETH holders can put at least 32 ETH into the contract address to become a validator, and Contribute to the launch of the Beacon Chain genesis. At around 10:20 on November 24, the balance of the Ethereum 2.0 deposit contract address reached 524,288 ETH, reaching the minimum standard for starting the creation block.
In the following phases 1 and 2, Ethereum will integrate 64 new shard chains on the basis of the beacon chain to improve transaction throughput; then virtual machines and smart contracts will be introduced to merge the 1.0 mainnet into In the 2.0 network, it is fully realized to operate under the PoS mechanism. According to official estimates, this will be completed in 2022.
How does the PoS mechanism of Ethereum generate blocks?
Overseas developer Andrey Belyakov introduced that Ethereum 2.0 relies on verifiers to pledge ETH to generate blocks, and deposit 32 ETH to participate in block generation. The network randomly selects verifiers from the verifier pool, and the selected ones will have the opportunity to create the next block, and the successful verification of the block will be rewarded with ETH. And if a validator tries to prevent the normal block generation, the ETH deposited will be fined.
"The difference between ETH1.0 and 2.0 is that the former is a small road, and the latter is a highway." Ethereum developer Joseph Chow described the improvement of the new generation of Ethereum.
ETH over-collateralized yield drops 5%
According to the PoS mechanism of the beacon chain, before smart contracts and applications are built, the way for investors to participate in the 2.0 network seems to be only through deposits (staking) to become verifiers. Moreover, before Ethereum 2.0 is fully implemented, this pledge is a one-way process and cannot be retrieved within a short period of time.
However, before the launch of the beacon chain, ETH holders' enthusiasm for participation increased significantly. According to the data of Okey Cloud Chain, as of 2:00 pm on December 1st, the Ethereum 2.0 deposit contract address has received 872,900 ETH, and 27,271 verifiers have completed the mortgage of 32 ETH. This has far exceeded the initial mortgage amount of the beacon chain.
In the previous 24 hours, about 22,560 ETHs were pledged to the contract address. At this time, the mortgage annualized rate of return was about 16.6%, which was lower than the 21.6% when the beacon chain reached the launch standard on November 24. According to the data released by the Ethereum Foundation, as the number of ETH participating in the mortgage increases, the annualized rate of return of the mortgage will continue to decline. When the total deposit reaches 10 million ETH, the rate of return is about 4.6%.
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ETH2.0 PoS Expected Yield Curve
The amount of deposits continues to increase, reflecting the holders' optimism towards Ethereum 2.0. More and more ETH is locked in the deposit contract, which theoretically forms a deflationary effect. In addition, BTC has driven the market to rise after November 30. ETH is also up.
At 8:00 p.m. on December 1st, when Ethereum 2.0 was officially launched, ETH was quoted at $615.65, an increase of 3.06% from the opening price of $596.8 on the day, and an increase of 62.01% from the $380 when the deposit contract address was made public on November 4th. . However, within half an hour thereafter, ETH briefly fell by 5.79% to $580, while BTC fell by 3.83% during the same period. In addition to being affected by the short-term decline of BTC, some people believe that the decline may be due to the realization of good news and some investors' shipments.
Although any investor can put 32 ETH into the deposit contract address, it should be noted that there will be no ETH2.0 tokens before Ethereum 2.0 lands. Moreover, there are certain thresholds for becoming a verifier. You need to run the verifier node yourself, pay the cost of the verifier, and ensure that the node is active and stable.
If the validator goes offline and fails to perform his duties correctly, he may receive a "ticket"; if the validator publishes contradictory block information, he will not only be fined, but may also face the danger of being expelled from the network. The penalty amount ranges from 1 ETH to the total amount staked. Developer Andrey Belyakov warns that penalties are easily preventable and should never happen unless validators are deliberately malicious. From Andrey's words, it is not difficult to hear that the fine mechanism mainly prevents malicious behaviors that threaten network security.
To become a validator of the beacon chain, you need to have certain operation and maintenance capabilities, which is a threshold for some individual users who hold ETH but do not know how to build a validator.
Where there is demand, there is a market, and some exchanges have launched agency services.
On December 1, the encrypted asset exchange Coinbase announced that it will participate in Ethereum 2.0 pledges on behalf of users and support new currency transactions. Users can convert ETH to ETH2.0 (non-real token) that only circulates on the site, and obtain Staking rewards through staking.
Coinbase stated that although the pledged ETH 2.0 tokens are still locked on the beacon chain, it will still support transactions between ETH 2.0, ETH and all other supported currencies to provide liquidity for customers. The aforementioned features are expected to launch in early 2021.
Earlier on November 7, BiKi launched the ETH2.0 verification node mining activity to lower the threshold for users to participate in mining. It also launched the BETH in-site exchange token similar to Coinbase, which can be exchanged by users in advance. The ratio is 1ETH: 1.01BETH.
