Ethereum: Dubai-based financial giant supports Eth 2.0 launch with $10M

  • The Dubai-based investment company IBC Group will support the launch of Ethereum 2.0 and by staking 22,000 ETH.
  • For this purpose, the company has entered into a cooperation with the decentralized staking service CanETH.

The launch of Ethereum 2.0 is just around the corner and is planned for the first of December 2020. Until then, a total of 524,288 ETH must be paid into the deposit contract so that the beacon chain can start as planned. However, as Crypto News Flash has already reported, there could be a delay, as only 102,816 ETH have been deposited so far.

IBC Group supports launch of Eth 2.0

The Dubai-based investment firm IBC Group has now teamed up with CanETH, the decentralized staking service from Canada, to support the launch of Eth 2.0 with $10 million. A total of 21,984 ETH for 687 validators will be funded. IBC Group says that it will support a new “greener model” of blockchain technology. Khurram Shroff, Chairman of the Group, said:

We are very excited by the ‘Proof of Stake’ concept proposed for the Ethereum 2.0 smart contracts and are locking up 20,000 eth which is a one way trip till phase 2. This lockup shows our confidence in ETH2 and dedication to the beacon chain. The greener and more efficient version being introduced in the second iteration addresses the unsustainably high energy consumption required by the ‘proof of work’ model, making it even more attractive.

He further states that the launch of Eth 2.0 will open new avenues for investors and also promote further growth in the area of adaptation and innovation. According to Dwain Pereira, co-founder of CanETH, the transition from proof-of-work to proof-of-stake has been rightly criticized in the past because of the high energy consumption and thus the unattractive use from a business perspective:

The Proof of work Blockchain model uses more electricity than some countries. These exorbitant energy costs are eventually paid using fiat currencies, which creates downward pressure on the value of the cryptocurrency. So, the Proof of Stake model will be both energy efficient and more lucrative for stakers.

Although there is uncertainty in the community about a possible delay of Eth 2.0, in a new Ask-Me-Anything on Reddit, Vitalik Buterin is confident that the launch date can be met. He is said to be in discussions with further industry leaders, who will also support the start.

ETH 2.0 will bring 100,000 TPS

Buterin went on to say that with the official launch of Eth 2.0, many of the benefits of the new ecosystem will begin to take off. In addition, he believes that the transaction throughput of 100,000 TPS that was forecast last year will be achieved faster than many investors and the community expects:

As part of the rollup-centric strategy, “phase 2” (native sharded execution) is de-emphasized for the time being. This is because the ultimate goal of phase 2 (very high TPS) is achieved even better by data sharding (phase 1) plus rollups, which is expected to come sooner than phase 2, so it’s better to just put all of our effort at the moment into making those pieces happen sooner.

It remains to be seen whether the expected start date of December 01, 2020 can be met.

About Author

Collin is a Bitcoin investor of the early hour and a long-time trader in the crypto and forex market. He's fascinated by the complex possibilities of blockchain technology and tries to make matter accessible to everyone. His reports focus on developments about the technology for different cryptocurrencies.

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