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One of the biggest stories in the crypto space right now is the upcoming launch of Ethereum 2.0, the long-awaited update to the blockchain that will review its consensus mechanism and how it validates transactions.
There have been some concerns that the launch will not take place due to the lack of deposits in the ETH2 contract.
For context, Ethereum must be brought from the original chain to the ETH2 chain so that validators, or full node operators, can participate in block validation. The code specifies that there should be at least 16,384 validators staking 32 ETH each before the update can be successfully launched. If that threshold is not reached, some have feared that the coins will be stuck in limbo.
According to the developers of the Ethereum Foundation, however, this is not the case.
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Discussion on the launch of Ethereum 2.0
Speaking at a recent Ethereum “ask me anything” foundation on Reddit, EF researcher Danny Ryan said the threshold can be adjusted as needed to ensure ETH2 actually sees genesis:
“Personally I think that for the initial launch, 100k + ETH in the contract is enough and that adjusting the threshold down to not leave ETH in limbo for too long makes sense. The rewards will be very high for these first users and ETH validation will probably grow over time. Planning to adjust this constant immediately to November 24 or December 1 is a bit aggressive, imo. We don’t know exactly what will happen in the next couple of weeks, so we should look first. On that connected per thread, customer engineering teams seem to want to wait until December and adjust the constant in early January if necessary. This seems reasonable. “
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Other developments
Vitalik Buterin, founder of Ethereum, also hinted at the launch in the Reddit thread. Commenting on the test networks for ETH2, he said:
“Personally I really hope that once we have a testnet for” eth1 inside eth2 “, it can end up replacing some of the existing testnets! This would serve two purposes simultaneously: (i) it would satisfy people’s need for a test environment ethereum and (ii) would test many parts of the merge implementation. We could even run the merge as a whole procedure on Ropsten or other testnet! “
The ETH2 Deposit Agreement is expected to see an inflow of liquidity as the launch approaches to successfully trigger the upgrade.
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Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com Ethereum Foundation Devs Discuss ETH2 Launch & Economics
