(ETHE) – Ethereum 2.0 jitters end when staking threshold is exceeded for launch of phase 0, cryptocurrency on the rise

The next version of Ethereum (ETH) is ready to be rolled out in a phased rollout starting December 1, as the deposit agreement has reached the threshold in terms of ETH deposits for the start of the project.

What happened: As of Monday, the Ethereum 2.0 deposit agreement has raised more than 540,000 ETH needed to trigger the cryptocurrency’s transition from its current proof-of-work model to a proof-of-participation model, CoinDesk reported.

On Monday evening a quarter of the ETH needed to activate the contract was deposited over a four hour period.

Bitcoin and Ethereum currently use the Proof of Work consensus mechanism, which requires a large amount of electricity and limits transactions to a small number at a time.

The Proof of Stake model, on the other hand, is considered a fairer mining system and has more scalable transactions and uses less electricity.

Ethereum was up 32.51% in a seven-day period before printing. Over the same period, Bitcoin (BTC) gained 10.24%.

Because matter: The launch of the new version of Ethereum was delayed until 2020 due to debugging. The move to proof of stake is expected to change the economic basis of the second largest cryptocurrency by market capitalization, The Block reported.

The new version of Ethereum will not launch immediately, but will launch as a parallel blockchain called “the beacon chain,” CoinDesk noted.

Ethereum co-founder Vitalik Buterin expressed his relief on the doorstep on Twitter with a meme from the Lord of the Rings.

524288 pic.twitter.com/N66EmtW0Ih

– vitalik.eth (@VitalikButerin) November 24, 2020

The key stakeholders of the beacon chain will act as validators, which are similar to the miners on the proof of the work chains.

Validators earn an annualized reward of 20% on their staked ETH. There are more than 16,300 such validators at launch, according to CoinDesk.

Price action: Ethereum was trading 6.05% higher at $ 614.85 at press time. Ethereum Trust in grayscale (OTC: ETHE) closed up 25.1% on Monday at $ 97.94 in the OTC market.