How can Ethereum 2.0 influence on crypto markets and investors?

29 JUL 2020 08:08

The developers of the Ethereum project are going to launch its long-desired ETH 2.0 implementation in the second  half of this year. The Ethereum’s upcoming product will be a key benchmark for the network’s development as it switches its protocol from PoW to PoS. It is supposed that this upgrade  will enhance the scalability and provide crypto users with new useful features.

While its affirmative effect is likely to be a nice change, the upgrade will be followed by some interesting features and new updates  for users, traders, and technology experts in the whole industry.

How Should Users Care About Their Coins During The Implementation?

Those crypto holders who have worries regarding their digital funds should know that the upcoming integration consists of two phases: the transfer of users’ cryptocurrencies and the status shift of the project’s blockchain. Users can begin the process of transferring their ETH funds with the launch of a cutting edge solution for Ethereum — Beacon Chain. Ethereum users will have a possibility to block their funds on the actual network using a smart contract and receive the equal  amount of ETH funds on the new network. Then, ETH fans  will be able to get rewards via staking.

This is the first variant of money transferring, but there is a possibility to take advantage of a more advanced method. Such a solution can exclude the risk of funds locking, but it will be presented by the project’s developers later.

The following benefits are waiting for Ethereum users after the integration of the new solution:

  • sharding;
  • staking;
  • DeFi solutions are anticipated to become more vying;
  • better speed, safety, efficiency;
  • convenient and coherent access to all innovative solutions offered by the blockchain industry.

While there are lots of points of view  regarding the realization of a new blockchain version, its influence in the near future will require much more thrilling researches and discussions. It is expected  that the evolution of this solution will be bright and worthful.

Crypto Sector Is Waiting For The Implementation

Some crypto experts think that the realization of Ethereum 2.0 will be a wonderful catalyst for the crypto industry than the halving of BTC. For example, Ryan Watkins, the analyst of Messari, believes the long-desired implementation in the project’s ecosystem can be a strong game-changer as it is better than the Bitcoin halving simply because it’s an ambiguous and fundamental change. Thus, there are reasons for investors to watch ETH price charts and make strategic decisions.

PoS consensus mechanism is a great motivation for investors to buy ETH coins and hold them in their wallets to obtain rewards via staking. As a result, the price of the second largest cryptocurrency would definitely rise, as the supply achieves a balance. Moreover, PoS validation of transactions would be faster. All these benefits will inevitably add value to the ecosystem of the Ethereum project and to the cryptocurrency itself.