The price of Ether (ETH) is currently down almost 3% in the past 24 hours, despite the Ethereum 2.0 Beacon Chain going online yesterday
The Ethereum network is nearing the launch of Ethereum 2.0 and the transition to a Proof of Stake Protocol (PoS). The network developers have worked hard in the last few months to successfully migrate to the PoS protocol and are getting closer to their goal.
The first phase of Ethereum 2.0 went live yesterday. According to Beaconcha.in, Ethereum 2.0 would be a generalized blockchain for the decentralization of computerized applications. The network would support a wide range of uses, from iPhone games to government bonds and other assets in the financial markets.
The launch of Beacon Chain completes phase zero of the transition of the consensus mechanism from Ethereum. This latest development would fundamentally change the way the Ethereum network handles payments within the ecosystem.
Developers and researchers believe the launch of the Beacon Chain is a huge step forward for Ethereum as it forms the foundation for the network’s more scalable, secure and sustainable home. Although there is still a lot to do before the final migration to the PoS protocol, the launch of the Beacon Chain is an important milestone on this journey.
The beacon chain will serve as the backbone of the new Ethereum blockchain. At launch, Ethereum 2.0 is expected to compete with PayPal and Visa in terms of processing speed and outperform them in terms of payment and network transparency.
After the start of the Beacon Chain, Ethereum 2.0 now has two technical hurdles before PoS becomes a reality. The developers have to dynamically split the PoS Ethereum blockchain into shards (several data records) and take over rollups (solution for decentralized apps).
The ether price is below average
The news of the launch of the Beacon Chain should have driven the price of Ether higher in the market, but it didn’t. At press time, ETH is down nearly 3% against the US dollar in the past 24 hours.
ETH’s underperformance parallels the general market that has lost billions of dollars in the past few hours. Bitcoin hit a new all-time high 48 hours ago after hitting $ 19,900. However, it’s down nearly 5% and is currently trading at $ 18,580 per coin.
This could be a temporary retreat as market experts believe Bitcoin, Ethereum and other altcoins could see massive gains in the coming weeks. This bull run is unlike any other in the past and optimism in the market remains strong.