Ethereum 2.0 Beacon Chain Successfully Launches

Ethereum 2.0 beacon chain has successfully launched today as it ushers in a new era for the leading smart contract platform. The Beacon phase will initiate a multi-year upgrade for the network that will culminate in the full deployment of Ethereum 2.0. Ethereum co-founder Vitalik Buterin posted an image of the genesis block produced on the Beacon phase smart contract.

Normal people: we should really put something profound in the first block of the ethereum PoS chain, something about giant leaps for mankind or whatever.

Ethereum community: pic.twitter.com/cOu94fUPE9

— vitalik.eth (@VitalikButerin) December 1, 2020

Beacon Chain Begins Major Transition for the Ethereum Network

The beacon chain launch initiates the transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS). This is expected to bring a major change to the Ethereum ecosystem.

The PoS consensus protocol provides an energy-efficient method for securing the Ethereum network than the current PoW protocol.  PoS involves validators locking their Ether in a staking contract instead of using massive computing power employed by PoW.  Thus validators will be able to stake their coins to receive rewards when the upgrade is fully completed.

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At the moment, over 500,000 ETH has been deposited in the Ethereum 2.0 staking contracts. This ETH will be locked until phase 1.5 of the Ethereum 2.0 smart contract. Phase 1.5 is expected to launch in 2021 and will feature a merger between the current Ethereum network and the new beacon chain.

There are high expectations for ETH 2.0 as a solution to the current problems facing the Ethereum Network. Ethereum is currently plagued with high transaction fees and congestion in traffic, which has led to concerns on scalability. Today’s launch of the beacon chain is the first step towards rectifying these problems.

Ethereum Price Could Soar After Beacon Launch

There is a growing belief that the Ethereum 2.0 beacon phase’s launch could trigger a surge in Ether’s price (ETH). Ethereum has experienced massive growth in 2020, largely due to the explosion of DeFi. ETH began the year trading at about $130 but has recorded a price increase of 250% in 11 months.

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Ethereum suffered a slight dip in price following the announcement of the launch. The leading altcoin is currently trading for $577, which is about $30 lower than its initial price of $607 recorded in the early hours of the day. Nevertheless, the signs look bullish, and a resurgence in price could occur in the coming days.