The creator of Ethereum, Vitalik Buterin, was present at the BITconf 2020 in an unpublished interview, conducted by Andreas M. Antonopoulos. During it, they discussed how the launch of Ethereum 2.0 has been and the entire trajectory of Ethereum in general up to the present.
During the interview, Buterin expressed that the Ethereum network has suffered periods of great congestion on several occasions over the years, due to the various applications and related traffic.
In this sense, Buterin specified that the most recent activity that impaired the speed of the Ethereum network was the activity of decentralized finance. Since the Ethereum blockchain has stalled. Which has resulted in high commissions and longer than average confirmation times.
Ethereum has presented several updates since its creation assures Vitalik Buterin
In this sense, the creator of Ethereum, Buterin, commented that the project has presented several updates and the last one was Ethereum 2.0. Which assured that it proposes a scaling solution that greatly increases the number of transactions per second.
For his part, he also indicated that he will move the blockchain to a different consensus algorithm known as proof of stake. Although the transition was delayed, the team finally launched on December 1 for phase 0 of ETH 2.0.
Anticipation for the launch of ETH 2.0 has been intensifying throughout 2020 and has been reflected in the price of Ether.
The launch has been especially welcomed by those in the decentralized financial community. The DeFi explosion during 2020 saw a huge increase in traffic and gas fees on the Ethereum network. Buterin assured during laBITconf 2020.
Let’s remember that Ethereum is the second largest digital currency in the world by market capitalization. It is also the infrastructure of choice for decentralized finance (DeFi) projects and dApps.
The impact on the market after the launch of Ethereum 2.0
First things first, your ETH and ERC-20 tokens are safe. The new update will only revise the Ethereum blockchain network, leaving the crypto component intact. Of course, users should expect a price shock.
As the network improves, the demand for ETH may increase, leading to growth in value. Obviously, this depends on whether the transition goes smoothly. While statistically unlikely, a failure of epic proportions can render Ethereum unviable.
Ethereum 2.0 is also believed to push the DeFi market to new heights. Such projects require a reliable, scalable, decentralized and secure blockchain infrastructure. With the update, the Ethereum blockchain will likely be considered an ideal option.
Buterin also added during laBITconf 2020 that phase 1 of the project will be released in 2021, developers will release chunk chains. Soon after, the current main network will become a fragment, finalizing the transition to PoS.
And as for phase 2, it will go beyond 2021. The last phase will transform the fragments into functional chains. This phase will mark the end of the Ethereum 2.0 upgrade process.
However, if this is indeed successful, the Ethereum 2.0 update will prepare the blockchain network for the future by implementing proof-of-stake and fragment chains.
For these reasons, dApps and DeFi projects will access a scalable, efficient and secure infrastructure that will foster innovation and encourage the use of next generation projects.