Ethereum 2.0 Beacon Chain officially launched tonight Coinbase will provide 2.0 ETH transactions

After exceeding the deposit target, the Ethereum 2.0 beacon chain will be officially launched at 20:00 on December 1, Beijing time, which marks the first step of the Ethereum 2.0 mainnet.

Another noteworthy news is that the well-known exchange Coinbase announced today that it will replace users to participate in the Ethereum 2.0 pledge and support the transaction of new coins, which means that Coinbase users will be able to put their ETH in one click. Convert to ETH 2.0 and get Staking rewards.

It is reported that Coinbase will launch the above functions to customers in eligible jurisdictions in early 2021.

In the past 24 hours, the Ethereum network burned nearly 11,400 ETH: Jinse Finance reported that according to ultrasound data, the Ethereum network burned a total of 11,377.95 ETH in the past 24 hours, with an average of 7.90 ETH per minute. [2022/1/20 9:01:24]

In fact, when a user pledges his ETH to the Ethereum 2.0 network, he cannot transfer his 2.0 ETH, nor can he redeem it to the ETH 1.0 network, which needs to wait for the second phase of Ethereum 2.0 to land To be able to circulate, according to the developer's estimate, it will take about 2 years.

Ethereum core developer: No one asked developers what they thought about raising the gas limit: On July 20, Ethereum core developer Péter Szilágyi tweeted that it was surprising that there were no An article asking any developer what they think about this. [2020/7/20]

And this long-term lock-up rule also inhibits the enthusiasm of investors to participate in Ethereum 2.0 pledge.

However, in theory, large service providers such as exchanges can participate in Ethereum 2.0 Staking instead of their users. Although these service providers cannot transfer the pledged 2.0 ETH, they can circulate in the internal database to form an isolated trading market. Provide liquidity to users. What these service providers need to do is to regularly take snapshots of 2.0 ETH holders and then distribute rewards.

Voice | V God: ETC's 51% attack proves that Ethereum's decision to switch to PoS is correct: Ethereum founder V God commented on a netizen's tweet today: "I don't think a 51% attack on ETC can prove that ETH itself Completeness in engineering; the only difference between the two is that the computing power of ETH is more than 20 times that of ETC. However, this also proves that ETH is complete in concept, because it proves that our decision to switch to PoS is Correct." [2019/1/9]

Obviously, by doing this, service providers such as exchanges can attract a group of users’ ETH and bring them more income.

The announcement made by Coinbase is expected to bring a demonstration effect, leading to more exchanges (such as Binance, Huobi, OKEX, etc.) to provide similar services.

What will happen after that?

First of all, this will lead to two types of ETH trading markets, one of which (that is, ETH 1.0) holders will not enjoy Staking rewards, but they can freely withdraw coins and participate in various Defi applications. Holders of another type of ETH 2.0 can enjoy staking rewards, but cannot deposit and withdraw, and can only trade and circulate within the exchange.

This could cause the prices of the 2 ETHs to diverge, here are 3 possible scenarios in the short term:

Traders who don't know the truth choose to buy ETH 2.0 directly in the market, causing the price of ETH 2.0 to be higher than ETH 1.0 in the short term. 2.0 currency price hits the same level as ETH 1.0;

The buying demand and selling demand are balanced, resulting in the ETH 1.0 currency price being equal to the ETH 2.0 currency price;

Since the liquidity of the 2.0 market is much smaller, the selling demand in the market is greater than the buying demand, which will cause the price of ETH 2.0 to be slightly lower than that of ETH 1.0;

Judging from the current trend, it is inevitable for large exchanges to provide Ethereum 2.0 Staking services, which is actually equivalent to PoS mining pools. It is expected that in the future, Ethereum 2.0 will have dozens of large PoS mines Pool node service provider, which is actually similar to Bitcoin's PoW mining pool.

And if such a plot develops, then V God’s statement that “PoS algorithm can be more decentralized than PoW” is wrong.

Nevertheless, the degree of decentralization of Ethereum 2.0 may still be higher than most projects.

What do you think?

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