The second-largest blockchain network is itching to update. As Ethereum 2.0 nears its due date, the crypto market is basking in its pre-market glory.
In fact, clients with non-crypto wallets have staked more Ether (ETH) than those with crypto wallets. About 77% or 6.8 million ETH staked belongs to those who don’t have cryptocurrencies in their wallets, exclusively.
According to executives at Ethereum blockchain developer ConsenSys, this makes up an engaging, serviceable market for ETH 2.0. This is because staking, or owning more than 32 ETH, is a big part of the Ethereum upgrade.
Ethereum 2.0 moves the coin’s implementation from Proof-of-Work (PoW) to Proof-of-Stake (PoS). PoW has a decentralized ledger that gathers miners’ activity and transactions, while PoS puts the network through the commitment of a stake.
This makes the crypto industry more akin to a stock market, mellowing the hesitance for the asset class.
Of course, it’s not as if Ethereum is coming soon. The initial release of ETH 2.0 is an introduction to using it as a replacement for ETH as a whole.
The transition from fully integrating ETH 2.0 as its own digital asset class takes one to two years, at least.
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Ethereum 2.0 Isn’t Ripe Yet
ETH creator Vilatik Buterin admitted that he and his team of investors underestimated how long the transition was going to take. Because of this, they now need to prepare an alternative scaling solution to use until investors can use Ethereum 2.0 alone.
Plasma Group, a non-profit research organization, started its scalability research in January 2019. It had received money from several crypto platforms to conduct research for problems involving layer-two scaling solutions.
Only one year after its launch, Plasma Group halted all its research in January of this year. The group claimed their research was unneeded because there were more urgent matters than scalability.
Now that Ethereum 2.0 is on the way, the market could regain its interest in scalability for a successful transition.