The long-awaited launch of Ethereum 2.0 or Eth2 is planned for next week. Specifically, it has been confirmed that Eth2s can operate blockchains on a proof-of-stake basis, known as Beacon Chain will work alongside the Ethereum network from December 1st.
Although some members of the blockchain community were skeptical about the start date of the beacon chain on December 1st, it was deposited with the Eth2 commissions the impressive sum of 524,288 ethers (ETH) with 16,384 validators. Therefore, the Ethereum Foundation ensures that the ETH 2.0 beath chain starts at the expected time.
While it’s impressive It is important to note that additional payments were made to the ETH 2.0 payment contract even after the goal was achieved. To put this in perspective Vitalik Buterin, The co-founder of Ethereum posted a tweet on November 24th showing the impressive number of transactions across the Ethereum network during that period:
Although the origin of these transactions is unknown, Alex Mashinsky, CEO and founder of Celsius Network, a cryptocurrency lending platform, said Cointelegraph that Celsius has given 25,000 ETH to ensure Eth2’s deposit agreement has enough funds to launch on time.
According to Mashinsky The ETH amount deposited by Celsisus was equivalent to USD 15,125,000 at the time of the transaction. Mashinsky further noted that the funds came from the Celsius pool of community assets, and stated that this will be used to generate an even higher rate of return for the community once Eth2 is officially launched. Currently, Celsius users can achieve an annual percentage return of up to 7.21% on the ETH stored in the Celsius wallet. Mashinsky said:
“We already have 230,000 users on the Celsius network and $ 3.3 billion in assets. These users deposit their ETH, which allows the network to operate in many different ways. The 25,000 ETH contributed to the proof-of-stake network The Ethereum will create another source of income for our community. “
Mashinsky also announced that the growing Celsius community was modeled on Ethereum. Point out the importance of returning the favor to the Ethereum network:
“We built our CEL token on the Ethereum blockchain and are using it to scale and become one of the fastest growing companies in the crypto space. We are proud to open the genesis of ETH 2.0 and to contribute the latest building block. with the 25,000 ETH from the Celsius community and as a helping hand for a company that helped us scale our own project. “
The expectations of ETH 2.0 are high, but there are still concerns
Though Eth2’s beacon chain is set to be released on December 1stThere are still concerns. For example, while scalability issues are expected to be resolved if Ethereum applies a consensus algorithm to prove stake, The security of some of Ethereum’s smart contracts remains in question. This is particularly evident with the emergence of decentralized financial projects (DeFi).
For this reason, the The Enterprise Ethereum Alliance, called the “EthTrust Security Levels Working Group”, has focused on creating a number of defined standards to ensure that Ethereum smart contracts can be used securely. The working group hopes to finally develop a digital register of secure smart contracts that can be used by companies.
Additionally, many remain concerned that the benefits will not be apparent immediately after the Eth2 phased adoption. So, The need for second tier scalability solutions has become evident.
Put your worries aside Mashinsky expressed his enthusiasm for faster scalability thanks to the Eth2 network:
“Ethereum 2.0 will scale everything 100 times faster than it is now. The ability to convert Ethereum from a proof-of-work network to a proof-of-stake network opens up a world of new ideas and opportunities that arise due to problems of scalability was previously not achievable “.