Ethereum 2.0 Deposit Contract Has Enough Funds to Launch – CoinDesk

by crypto journalist

The smart contract required for triggering the first phase of Ethereum 2.0 has enough funds to begin activation of Ethereum’s most ambitious upgrade yet, which will radically shift Ethereum’s economic model, resource usage and governance.

The Ethereum Foundation had previously set a soft launch date for Dec. 1, assuming the deposit contract saw 524,288 ETH staked by Nov. 24. It hit the target with hours to spare, after more than 150,000 ETH were deposited in a 24-hour period.

To be clear, the network itself isn’t launching just yet. The launch of Ethereum 2.0 will activate a parallel proof-of-stake blockchain dubbed “the beacon chain” to run in parallel alongside the existing Ethereum network. The initial phases of its development will not impact existing users and decentralized applications on Ethereum.

The primary stakeholders of the beacon chain at Ethereum 2.0 launch will be validators, the equivalent to miners on a proof-of-stake network. Like miners, validators earn rewards on the network in exchange for processing transactions and creating new blocks. In order to become an Ethereum 2.0 validator, a user must stake a minimum of 32 ETH through the deposit contract.

The beacon chain activation is the first of four phases of the Ethereum 2.0 migration, which begins with the onboarding of validators and eventually leads to the full transition of all users and dapps to the new network. There are several theories on how the crypto markets will react to the dual blockchain system of Ethereum in the interim before the full migration is complete. 

This content was originally published here.

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