The highly anticipated launch of Ethereum 2.0 or Eth2 is scheduled for next week. In particular, it has been confirmed that Eth2’s proof-of-stake blockchain known as the “Beacon Chain” will run alongside the Ethereum network from December 1st.
Although some members of the blockchain community remained skeptical of a December 1st launch date for the Beacon chain, an impressive 524,288 ethers (ETH) were added to the Eth2 contract by 16,384 validators. Therefore, there is now an assurance from the Ethereum Foundation that Eth2’s Bea2 chain will actually go live as expected.
While impressive, it’s important to note that additional deposits have been added to the Eth2 deposit agreement even after the goal has been met. To put this into perspective, Vitalik Buterin, co-founder of Ethereum, sent out a tweet on November 24th showing the impressive amount of transactions across the Ethereum network over time:
Although it is not known where these transactions came from, Alex Mashinsky, chairman and founder of Celsius Network – a crypto credit and lending platform – told Cointelegraph that Celsius provided 25,000 worth of ETH to ensure the Eth2 deposit agreement time has enough resources to get started.
According to Mashinsky, the amount deposited by ETH Celsisus was equivalent to $ 15,125,000 at the time of the transaction. Mashinsky also noted that the funds came from the Celsius pool of community assets and stated that this will be used to generate even higher returns for the community after the Eth2 network officially launched. Currently, Celsius users can earn up to 7.21% annual percentage of ETH in the Celsius wallet. Mashinsky said:
“We already have 230,000 users on the Celsius network and $ 3.3 billion in assets. These users rely on ETH so that the network can generate income in a variety of ways. The 25,000 ETH that have contributed to the Ethereum network to prove the commitment will generate another source of income for our community. “
Mashinsky also shared that the growing Celsius community has been modeled by Ethereum, pointing out the importance of giving back the Ethereum network:
“We built our CEL token on the Ethereum blockchain and used it to scale and become one of the fastest growing companies in the crypto space. We are proud to open the ETH 2.0 Genesis and, with 25,000 ETH from the Celsius community, contribute the final building block and help a company that has helped us scale our own project. “
Hopes for Eth 2.0 are high, but concerns remain
Although the Eth2 beacon chain is set to launch on December 1, concerns remain. For example, while scalability issues are expected to be resolved if Ethereum introduces a consensus algorithm to demonstrate stake, the security of some of Ethereum’s smart contracts remains in question. This became particularly clear through the rise of decentralized finance projects (DeFi).
For this reason, a new working group of the Enterprise Ethereum Alliance called “EthTrust Security Levels Working Group” has focused on creating a set of defined standards to ensure that Ethereum’s smart contracts can be used securely. Eventually, the working group hopes to develop a digital registry for secure smart contracts that can be used by companies.
Additionally, some remain concerned that the benefits won’t be apparent immediately after Eth2’s phased adoption. As such, the need for second layer scaling solutions has become apparent.
Aside from the concerns, Mashinsky was enthusiastic about the faster scalability of the Eth2 network:
“Ethereum 2.0 is scaling everything 100 times faster than it is now. The ability to move Ethereum from a proof-of-work network to a proof-of-stake network opens up a world of new ideas and opportunities that could not be achieved before due to scalability issues. “