Ethereum Launches Deposit Contract for Ethereum 2.0

News / 04.11.2020

Ethereum co-founder Vitalik Buterin has revealed that Ethereum 2.0 deposit contract is live. Buterin made this announcement on Twitter an hour ago, which paves the way for the rollout of Ethereum 2.0 Phase 0. The Ethereum foundation in a blog post further revealed how the genesis process is expected to happen.  The genesis time for the rollout of Ethereum 2.0 has also been moved from Jan 3 to December 1.

Prospective stakers will be able to deposit the required ether (32 ETH) deposits to the dedicated smart contract address. The deposit contract is programmed to accept 16384 deposits of 32 ETH each, totals at 524,288 ($200 million) to proceed with its launch. Also, the required deposits must be collected seven days before the launch date of Dec 1. If the milestone is not reached, the launch would be delayed seven days after the target is attained.

The deposit contract is important to Ethereum 2.0 and acts as a bridge between the current proof-of-work mainchain and the upcoming proof-of-stake blockchain. Ethereum 2.0 Phase 0 will not affect the existing Ethereum blockchain, which would continue to operate with the proof-of-work protocol.  It is expected that Phase 1 and Phase 2 transition will occur after successful testing of the Phase 0 update.

Deposit Contract Launch offers a Pathway to Ethereum 2.0

Today’s announcement offers clarity about the development of Ethereum 2.0. Ethereum has been plagued with scalability problems and the rising cost of gas fees in recent months. The success of DeFi has also shown the need for Ethereum to switch to a less energy-consuming protocol.

There is huge anticipation within the ethereum community on the new update’s launch, but this is not without concerns. Some believe that skepticism remains among a few due to some issues with the software. Also, the launch of Ethereum 2.0 would reduce rewards for miners who have made record profits on the Ethereum network in recent months.

Nevertheless, Ethereum 2.0 is a pressing need, and the launch of its deposit contract bodes well for the project.   Several Ethereum backed projects have already acknowledged the announcement, including ConsenSys and ShapeShift.

Olowoporoku Adeniyi is a blockchain enthusiast and crypto evangelist. Currently he loves all things crypto and covers happenings within the blockchain space.