The deposit contract for Ethereum 2.0 has reached the minimum value in time for the proposed Dec 1 launch. The beacon chain will run parallel to the current network.
Ethereum 2.0’s beacon chain is set to launch as the deposit contract reached the threshold value on Nov 23.
The staked value reached the 524,288 ETH required in time for the anticipated Dec 1 launch date. Had it missed the deadline, ETH 2.0 would have launched a week after staking reached the threshold value.
Ethereum 2.0 Primed for Launch
Ethereum will now prepare itself for one of the biggest upgrades in its lifetime. The upgrade will bring a change to the governance model, as well as improvements to scalability and performance. However, the road ahead is long, as many of the changes will be executed in a phased manner, starting with Phase 0.
The deposit contract for Ethereum 2.0 went live on Nov 4, quickly gaining some staked value. However, there was a period where the staking contributions seemed to stagnate. Many were not troubled, as a similar contribution in Ethereum’s development saw funds flowing close to the deadline.
The 16,384 validators are expected to receive higher than average returns, which will decrease as more ETH gets staked over time. The beacon chain will run alongside the current Ethereum blockchain, with the stakers being its primary participants.
Industry Insiders Cheer the Milestone
Several prominent figures in the industry celebrated the milestone.
EthHub developer Eric Conner and content creator Evan Van Ness were among them. Meanwhile, Messari founder Ryan Selkis claimed that he was always confident that the contract would reach the threshold value.
Ethereum co-founder Vitalik Buterin, on the other hand, assured users that they could still stake. Buterin himself contributed $1.35 million towards the deposit contract adding that migration towards proof-of-stake would not arrive until 2021.
Several companies have also staked large sums in ETH 2.0, including Dubai’s IBC Group. The investment was made in partnership with CanETH, which praised the move to a proof-of-stake model.
Ethereum’s price hit a 30-month high in light of the events, and is now over $600. 2020 has been a strong year for the asset, with a YTD performance that has pleased professional investors.
Grayscale Investments added over $58 million to its Ethereum Trust this year.