At Ethereum (ETH) the way is clear for the activation of the so-called Beacon Chain on December 1st. This network marks phase 0 for Ethereum 2.0. 525,000 ETH had to be collected to get it going.
Breathing a sigh of relief at Ethereum: Although late in the day, the prerequisites for the first real step towards Ethereum 2.0 have been met, but still on schedule. With the update of the network, which is divided over several phases, Ethereum wants to manage its protocol from resource-hungry proof-of-work (PoW) to proof-of-stake (PoS). Phase 0 of Ethereum 2.0 runs under the name Beacon Chain. In early November, the Ethereum Foundation started to raise capital for the Beacon Chain. However, the process was very slow at first and for a long time it seemed as if the required 524,288 ETH would not come together on November 24 as desired. But then a final spurt set in, as the data show, and now the conditions for the launch of Ethereum 2.0 on December 1, 2020, as targeted, have been met.
Ethereum avoids embarrassment for Beacon Chain
Ethereum 2.0 is the prestige project at ETH and is intended to guarantee the sustainability of the ecosystem by increasing speed and capacity. To test this in practice, the Beacon Chain will initially operate in parallel to the actual block chain of Ethereum. However, this phase 0 is not backwards compatible and deposited ETH are therefore initially fixed in Ethereum 2.0 and generally not tradable. This probably explains the reluctance to provide ETH for the Beacon Chain. If the original schedule had been missed, the project would automatically have been postponed by one week each until the required almost 525,000 ETH in the current value of more than 300 million US dollars would be reached.
But as I said, despite all the prophecies of doom in the last days and weeks, the Ethereum Foundation was able to achieve its goal and it is now becoming apparent that significantly more ETHs than necessary are switching to ETH 2.0. Parallel to this development, the price of ETH rose above the 600 US dollar mark for the first time since summer 2018. For mining pools with large amounts of ETH, the Beacon Chain is initially not very attractive. This is because the changeover to PoS jeopardizes their business model, and the ETHs parked in the Beacon Chain cannot be sold again or used in any other way for the time being. It is not yet known who finally gave up and made large sums of money available in ETH for testing Ethereum 2.0.
Conclusion: On 1 December the starting signal for Ethereum 2.0 will be given
Until Ethereum 2.0 is fully functional and completely replaces Ethereum 1.0, it could take until the end of 2021. However, the importance of Ethereum as the second largest crypto currency and lynchpin of the DeFi division is already strengthened by the Beacon Chain, as it demonstrates the ability to act and technological progress. Ethereum founder Vitalik Buterin has followed the exciting countdown to raising capital on Twitter in real time and is celebrating the current success. Now the eyes of the crypto scene are turning to December 1st and the launch of the Beacon Chain, which hopefully works without complications.
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