The Ethereum network has constantly developed over the years. All improvements and updates, in general, are intended to make the network more scalable, sustainable and secure.
Ethereum is currently set to change its consensus mechanism from Proof of Work to Proof of Stake through a series of updates that will be marked by its transition to Ethereum 2.0.
The 2.0 release will take place in three phases. The “Beacon Chain” phase has been active since December 2020. This PoS blockchain was released alongside the current PoW chain to test functionality and orchestrate the environment for future updates. As soon as the next phase, “The Merge”, is implemented, the Ethereum network would officially switch to the Beacon blockchain.
The aforementioned change is expected to occur by the end of this year and would spell the end of energy-intensive mining. The final phase of “Shard Chains” is scheduled for release sometime in 2022 and would enhance the network’s ability to validate transactions, store data, and improve network performance over time.
Progress so far
Ethereum 2.0 went live on the testnet, a while ago. According to data from The Block, the amount of ETH tokens wagered on the 2.0 deposit contract has already crossed the 7 million benchmark. In fact, at the time of writing this report, it stood at 7.4 million.
Also, the number of addresses with a balance of ≥32 ETH has seen a rise lately. The addresses mentioned above, in general, represent the possible network validators. As such, to run a validator node on the Ethereum network, a total of 32 ETH must be wagered.
Also, based on data from beaconcha.in, there are currently around 276k validators [a diferencia de los mineros] that are processing the blocks in the PoS network. These validators have a fairly high block success rate [99,51%]. In hindsight, the ratio of blocks lost per day has mostly revolved around the bare minimum.
The Ethereum network went through another update via the London hardfork in August. This update marked the implementation of EIP-1559 that altered the transaction fee system and initiated the burning of ETH tokens.
Ethereum witnessed its first deflationary day recently. As seen in the attached chart, the daily rate burned managed to rise above the daily block reward for time since EIP-1559 a day ago. This essentially meant that more Ethereum tokens were burned lately than were minted. Also, as detailed in a report, this migration has been quite successful.
As demonstrated above, the pace of development in the larger alternative network has been quite attractive. In particular, the price of ETH has reacted affirmatively to most of the network-related updates to date. Ergo, as the pending phases roll out, token HODLs can anticipate a similar price reaction.
This is a machine translation of our English version.
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