- The much-awaited Ethereum 2.0 promises high transaction throughput, security, simplicity, and resilience.
- Ethereum 2.0 launch date nears as the development team prepares for the launch of the Spadina testnet for deposits.
- Network activities are increasing as the launch date for Serenity approaches; price rally is also expected.
Ethereum is a renowned platform for decentralized smart contracts. Since its launch, the smart contracts network has given life to a myriad of cryptocurrency projects. However, with success comes responsibility and challenges. For Ethereum, the burden comes with supporting programs currently executing on its blockchain, ensuring security and reliability, among other vital things. Similarly, Ethereum has faced several challenges relating to network congestion, scalability, transaction processing time, capacity, and the latest gas fees increase.
In light of the above, the network developers have been working on a great upgrade, Ethereum 2.0 (Serenity), to open up the network and handle the pressure thrown on it. Serenity is another name for the much-anticipated upgrade.
The new protocol will see Ethereum migrate from the Proof-of-Work (PoW) consensus algorithm to the Proof-of-Stake (PoS) consensus. Other key features Ethereum 2.0 is bringing on board are sharding to ensure that the network scales to support a capacity of more than 1,000 transactions per second (TPS) and a new Ethereum Virtual Machine (EVM).
According to Danny Ryan, five key design features of Serenity include decentralization, resilience, security, simplicity, and longevity. It is important to note that ETH 2.0 has been designed to launch in three phases. Phase 0 is supposed to debut by the end of 2020. Phase 1 has been scheduled for 2021 ahead of phase 2, release either in 2021 or 2022.
Serenity launch draws nigh but not without challenges
There have been doubts that Serenity phase 0 will be released in 2020 as scheduled. Critics popularizing the doubts are dwelling on the challenges and delays the development team continues to face. However, a good project always suffers setbacks, while delays can be mitigated by ensuring that the dev team works around the clock. Besides, Ethereum co-founder Vitalik Buterin has, from time to time, assured the community that the launch is well on schedule.
Some of the setbacks include the Medalla testnet, which failed to perform as expected following its debut in August 2020. The editor of Prysmatic Labs, Raul Jordan, assured the community that Medalla testnet failures were not going to alter the launch of Serenity as had been exaggerated by critics. Medalla was supposed to be the final testnet before phase 0 of ETH 2.0 but was brought down by a bug on August 14. Jordan maintained that the bug, which slashed more than 3,000 events and internal validators, was the best thing that has ever happened to a testnet because a similar occurrence on the mainnet would be disastrous.
As reported on Tuesday, Ethereum developers are also set to launch another testnet called Spadina to run side by side, Medalla. The test net focus is on deposits and genesis to get ready for the eventual migration. According to Danny Ryan, an ETH 2.0 developer:
The main objective is to give us all another chance to go through one of the more difficult and risky parts of the process – deposits, and genesis – before we reach mainnet. If all goes well, it should give us greater peace of mind before we jump into the real deal later this year.
Danny is also reported to have submitted an Ethereum Improvement Proposal for Ethereum 2.0. The development team working on Ethereum has three crucial months ahead. They have to deliver a top-notch platform and still meet the deadline.
[email protected] has submitted an EIP for eth2 phase 0 https://t.co/eqvEDiT3FT pic.twitter.com/NHM3DJ8i4D
— Anthony Sassano | sassal.eth (@sassal0x) September 16, 2020
What will be the impact of the Ethereum 2.0 launch on the price?
Without a doubt, Ethereum 2.0 is a massive development that will elevate the second-largest cryptocurrency, Ethereum, to incredible highs. Moreover, the cryptocurrency market is not new to speculation, bound to surge as the launch nears. The network also opens up the platform for projects looking to other platforms like Tron, EOS, and Cardano because of the current Ethereum challenges. The on-chain activity has already started to increase due to the developments associated with Ethereum 2.0.
According to Santiment, an increase in development activities on the Ethereum network tends to coincide with increasing prices. Therefore, as development activities surge due to the imminent launch of ETH 2.0, ETH is set to rally to highs above $1,000.
Ethereum IOMAP chart
At the time of writing, Ethereum is trading at $ $364 following a retreat from weekend highs above $390. According to IntoTheBlock’s IOMAP, ETH/USD is facing the most challenging resistance between $365 and $376, an area where 634,570 addresses bought 10.53 million ETH. A break above this zone could quickly send Ethereum to highs above $400. The last time Ethereum traded above $400, it extended the bullish leg to $489. With the launch of Ethereum 2.0 on the horizon, this upward leg could remain unstoppable to highs beyond $1,000.