- Ethereum co-creator Vitalik Buterin revealed details about how Ethereum 2.0 works and some new features the big update will bring.
- Ethereum 2.0 is one of the reasons for ETH rally up to $400 for the first time in the last 2 years.
The transition in the Ethereum’s consensus protocol from a proof-of-work to a proof-of-stake blockcahin is one of the most anticipated events in crypto space. In a recent interview for the Unchained podcast, the co-creator ofEthereum, Vitalik Buterin, revealed some details about Ethereum 2.0‘s functioning and its disadvantages.
According to Buterin, Ethereum 2.0 will have features that will make it a “more technical” platform. In that sense, users with less experience and technical knowledge will find the platform less accessible. This could have a negative impact on the adoption of Ethereum. Buterin stated the following:
In Proof of Stake, for example, one of its disadvantages is that it’s definitely a bit more technologically complex because you have to deal with validators. You have to figure out what’s the process for validators logging in and what’s the process for validators logging out. And there’s a lot of just kind of management happening in the protocol.
Additionally, the co-creator of Ethereum highlighted the importance of ETH’s price for network security. Buterin said that this aspect is more important than others, such as the supply of the cryptocurrency. Therefore, Ethereum’s monetary policy will vary between the stability of ETH supply, its price and the stability of security. In addition, the co-creator of Ethereum said that a negative emission of ETH is within the range of possibilities for the cryptocurrency. Buterin stated:
If you look at the transaction fees for Ethereum in the last few weeks, you will see that they have been between 2000 and 5000 ETH per day. If you expand it to a year, then you see that it goes between 700,000 to 1,700,000 ETH a year which is higher than issuance with proof of stake. So, negative emission is not far from the range of possibility for Ethereum (ETH).
Bitcoin halving or Ethereum’s DeFi sector, who’s leading the rally?
In the last few days, Ethereum has been one of the cryptocurrencies with the highest profits in the top 20. At the time of publication, ETH is trading at $364 with gains of 4.94% in the last 24 hours. In the weekly and monthly charts, ETH shows gains of 22.44% and 64.85%.
Precisely two years ago, in August 2018, Ethereum was trading in the $400 range. Recently, the cryptocurrency managed to reach that range although it has since fallen to the current price. The rally seems to be motivated by the hype around the launch of the Medalla testnet, the last one before the launch of Eth 2.0. In addition to the growth of the DeFi sector in Ethereum.
In the crypto community, a debate has arisen between Bitcoin maximalists and other users who reject the theory that the rally of the past few days has been motivated by Bitcoin’s halving. In contrast, they propose that it was the Ethereum DeFi sector and the profits that yield farming offers investors, the rally’s main engine.
Below you can see the complete interview with the co-creator of Ethereum: