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Make or Break for Ethereum as 2.0 launch date approaches

Photo of: Joseph Stone
by Joseph Stone

The Ethereum 2.0 deposit contract is online. Phase 0 of the network should thus be launched on December 1st. However, 16,384 validators will first have to block (staking) 32 ETH on the ETH 2.0 deposit contract.

A new major step in the transition to Ethereum 2.0 has just been taken. The developers of the blockchain put the deposit contract for version 2 of the network online on November 4. The ETH placed on this contract will allow generating the Genesis block of Ethereum 2.0.

This contract of deposit allows the sending of ETH between Ethereum and ETH 2.0. It is above all the essential step to switch to the deployment of phase 0 of ETH 2.0. This phase should in principle start on December 1st.

However, to truly enter this phase, conditions are necessary. At least 16,384 validators must participate. This participation takes the form of the staking of 32 ETH. In other words, users will block this amount.

ETH 2.0 will not be launched until a total of 524,288 ETH has been reached. This represents a staking amount of nearly $200 million. Upgrading to Ethereum version 2 therefore requires a significant investment by the community and crypto owners.

In addition, the target amount must be reached 7 days before the start of phase 0. Otherwise, it will be postponed. The actual launch will only take place one week after a sufficient number of Ether has been transferred to the deposit contract.

Another important clarification is that validators paying a minimum of 32 ETH will not be able to recover their deposit before the start of phase 2 of Ethereum. This is not expected for about two years. The participation of 13.000 dollars (at the current rate) required therefore presents a risk.

ConsenSys was recently concerned about DeFi’s competition in this sector. According to the Ethereum studio, the higher return opportunities offered by the protocols of decentralized finance could slow down the participation in ETH 2.0 staking.

In the early hours of the deposit contract, however, several million dollars were raised. “$1,000,000 blocked in ETH 2.0 in 30 minutes,” a Twitter observer announced.

Almost eight hours after the official announcement, the total had reached 14,000 ETH according to the ETH 2 Launchpad. At 9:50 am on November 5, 16,357 of the 524,288 ether ethers were counted. This represents a little over 5.6 million Euros in staking. Still, a long way to go.