Time to talk about ETH 2.0

In the leadup to 2020, most people were talking about the halvening of Bitcoin as the most significant upcoming event in the crypto sphere. However, now that that event has passed with little fanfare or disruption, people’s eyes have begun to turn to the other big name in crypto, Ethereum, as it attempts to switch to a Proof of Stake (PoS) system, as well as implementing many other changes that will assist in the scalability, sustainability, and reliability of the Ethereum blockchain.

And for those of us trading, it’s probably a good time to understand the changes, and also the future advantages of stacking more Ethereum for the long term.


Proof of Work versus Proof of Stake

One of the main ongoing criticisms of Bitcoin is the significant use of energy needed to maintain it. Proof of Work (PoW) systems are reliant on high intensity mining rigs that many see as a big obstacle to the ongoing sustainability or mass adoption of crypto, as this is such a big social and economic issue and will continue to become more significant over time.

Ethereum 2.0 aims to slow the use of energy by switching to a Proof of Stake (PoS) system, ending the dominance of big mining farms, and democratising the maintenance of the blockchain by ensuring it is further decentralised. Users will eventually be able to stake Ethereum by locking up an initial investment (32 ETH, or around $7000 at the time of writing), and in return will receive dividends in the form of ETH as payment for helping maintain the integrity of the system. Furthermore, it requires at least 16,384 different ‘stakeholders’ until the system begins to pay out dividends. Sounds like a pretty good deal, right?

Too good to be true?

However, there are some concerns that with the increased scalability of the system by moving to PoS, they will sacrifice the security they have enjoyed in a much more secure, but slower, PoW system.

In fact, there have already been many delays in the rollout of the changes to the mainnet. Phase 0 (the first stage of the rollout) was initially slated for January of this year. It has since been pushed back numerous times, and many would say the newly given date of July 2020 is also in doubt. However, even though some opinions are split on the finer details, most analysts agree that the changes are positive and bode well for the crypto world.

With most of the remaining changes to be implemented in 2021and 2022, it is an interesting time to consider increasing your stocks of ETH as interest around the rollout occurs. Many analysts have even predicted that this project may in fact create perfect conditions for what is termed ‘the flippening’ – or the moment when ETH overtakes BTC in crypto dominance. As far fetched as that sounds, this does warrant keeping a closer eye on the second biggest player in the field.

What will happen to your ETH?

As it currently stands the plan is for the ETH 1.0 platform to sit inside the ETH 2.0 as a “shard” (a portion of the new network), and so very little would change for those holding ETH. Users who opt to stake the new system and lock in their funds for a predetermined period of time would essentially do a swap, and the old ETH would be burned.

What does this mean for WolfpackBOT?

WolfpackBOT gives you the option of directly trading ETH as a base currency, or as a pair with other bases.

At the time of writing there are 86 coins to trade on ETH base, with around 20 of them with a workable volume.

WolfpackBOT gives you the direct option to trade and stack ETH in the leadup to ETH 2.0 when the price is surely to rise as interest grows.

In terms of future changes for ETH on exchanges and any other info we come across, we will continue to keep the community informed via this blog and other channels.

What does this mean for Evolv?

According to the Ethereum team, users should not have to do anything to prepare for the changes to come. However, this does not mean nothing will change.

On the contrary, this has significant positive implications for the Evolv ecosystem and DAPPs in general.

No more gas fees! – Gas fees will disappear with the new system, and therefore removing the issue of being charged for a transaction even if it fails.

Faster transactions –Transaction speed should increase, even with much higher network use, so no more long wait times for transactions to confirm!

Increased value of Ethereum –If everything goes according to plan, the rollout of ETH 2.0 should increase interest in the coin, and DAPPs in general, and also encourage much wider adoption.

Get ready!

Exchanges and markets are already preparing for a big increase in support for staking of Ethereum. It’s an exciting future for the Ethereum network, and crypto trading in general.

This article is brought to you by WolfpackBOT, an advanced cryptocurrency trading bot that allows you to securely and automatically trade digital assets on Binance, and by the EvolV Smart Contract. The EvolV Ecosystem includes built-in referral dividends and volume based staking dividends for all token holders, meaning that every time EvolV is bought or sold, all EvolV holders receive instant dividends, paid in Ethereum.

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