Vitalik Buterin, one of the creators of Ethereum, gave information about how ETH 2.0 works and what features the giant update will bring. Ethereum 2.0 is seen as the main factor in ETH’s rise to $ 400 for the first time in the last 2 years.
The transition from proof-of-work to proof-of-stake in Ethereum’s consensus protocol is a change that the crypto world has been waiting for.
Ethereum 2.0 will make the platform much more technical
Buterin, who participated in the famous podcast named Unchained, talked about the operation and new features of Ethereum 2.0. According to Buterin, Ethereum 2.0 has features that will make the platform much more technical. In this case, the platform will be more difficult to reach for users with less technical knowledge and experience.
Stating that this situation will negatively affect the adoption of Ethereum, Buterin said:
“One of the disadvantages of the proof of stake is definitely more technically complicated because you have to deal with validators. You have to know the process of approvers entering and leaving the system. And in this sense, there are many types of management in the protocol. ”
Buterin also stated that the price of ETH is important for the security of the network. Stating that price is of greater importance than features such as supply, Buterin stated that Ethereum’s monetary policy; He said that the stability of ETH supply would alternate between the price of ETH and the stability of security. Stating that negative emissions are among the possibilities, Buterin said:
“If you look at the transaction fees of Ethereum in the last weeks, you will find that it is between 2000 and 5000 daily. If you increase this period to one year, you will see that it is between 700 thousand and 1 million 700 thousand ETH, which is even above the bill of our transition to proof of stake… As a result, the possibility of negative emissions in Ethereum is not very remote ”
Recently, ETH has come to the fore with serious rises. ETH, which has increased 23 percent in the last week and 65 percent in the last month, is the fastest rising asset among the top 20 biggest cryptocurrencies.
ETH, which was traded around 400 dollars at this time exactly 2 years ago, managed to reach these levels again. In addition to the ‘positive rumors’ about Medella, which is the last testnet before ETH 2.0, the growth in Ethereum’s DeFi sector is seen as one of the factors that trigger the price increase.
While Bitcoin maximalists say that the recent rally is related to the Bitcoin reward halve, one section says that what Ethereum’s developments in the DeFi industry and yield farming offer to investors is the rally igniter.