After literally years of development, The Genesis block of the Ethereum 2.0 beacon chain has finally seen the light of day.
The often delayed upgrade of the scalability and security of the second largest cryptocurrency by market capitalization started as planned, shortly after 12 noon. GMT on December 1st. The launch was uneventful and immediately reached the required deployment rate to be locked on the blockchain or set in stone.
The biggest change is the introduction of a proof-of-stake consensus in the network, which was previously based exclusively on the same proof-of-work consensus as Bitcoin.
PoS aims to provide a more energy efficient way to protect the network by asking validators to block Ether (ETH) in a subscription agreement rather than solving cryptographic puzzles with computing power.
The planned start date was only confirmed a week ago, as the seven-day countdown could only start when a total of 524,288 ethers had been paid into the employment contract.
After a painfully slow start, the stake was reached within a few hours to reach the expected goal of December 1st.
The transition to PoS paves the way for the implementation of future planned upgrades, like “sharding” to improve scalability.
The currently used ETH is expected to be locked until phase 1.5 of the launch of Ethereum 2.0, which is planned for late 2021 or early 2022. This creates the current Ethereum mainnet with the new beacon chain and the sharding system.
The anticipation of the launch of Eth 2.0 has increased over the course of 2020 and is reflected in the price of Ether, which started the year at just $ 130 but is currently rising to over $ 600.
The launch is particularly welcomed by the members of the decentralized financial community. The DeFi explosion in 2020 caused a huge increase in traffic and gas charges on the Ethereum network.