“Ethereum 2.0 is one track to deliver phase O in the very near future, said Richard Ma, CEO of Quants Stamp in a prepared statement.

Ethereum 2.0 is a network upgrade for the Ethereum network, it has been planned for a long time now, the upgrade is aimed at addressing love challenges the current network is facing like Scalability, speed and security. Eth 2.0 will also enable the Ethereum network to switch from a Proof Of Work (Pow) consensus to a Proof Of Stake (POS) consensus mechanism. The full roll out of Eth 2.0 will take 3 phases : Phase 0,1 and 2.

Phase 0 is being worked on and hopefully to be launched before the year ends. Justin Drake, a researcher on Ethereum 2.0 tweeted in July saying “the community wants phase 0 genesis in 2020- not a day late. The goal is set, lets ship”

The Teku, a part of the Ethereum 2.0 phase 0 was audited by Quantstamp in respect to launching within the year.

“Client teams have spent countless hours coordinating, testing, and working with auditing firms to ensure that the foundation of Ethereum 2.0 is ready for delivery,” Ma said.

The audit involved in maintaining the codes and controls that are needed for rewards and penalties, enforcing consensus rules etc.

The auditing company made sure to report issues back to the Teku development team, who quickly made sure to resolve them.

Along with Teku, the Beacon chain will be released in phase 0 and was already tested using the Zinken and Spadina Testnets. Once launched, focus will be shifted to phase 1 of the Ethereum 2.0 which will involve the integration of Proof-Of-Stake (POS) shared chain which help boost Eth’s Transaction Per Second (TPS).

The official announcement states that the Delphi Network will typically reduce the amount of gas consumed by around 75% due to a number of improvements to the blockchain Michelson interpreter. Storage costs have also been reduced to about 4 times lower compared to its initial cost.

“When you combine upgrade regularity with the reduced gas costs that this particular upgrade brings, Tezos is ripe for DeFi development,” noted Hugo Renaudin, co-founder of LGO Group and founder of Bender Labs.

The Ethereum gas prices are different to that of  Tezos, unlike Ethereum, gas is not used to pay fees on Tezos, they mainly serve as a limiter to prevent apps from consuming too much computing power. Gas prices are paid dude to the complexity of computations that are required to perform any given operations.

Gabriel Alfour, the lead developer at Marigold who served as a core developer of the Delphi upgrade spoke on the importance of low gas cost for DeFi applications.

“With the Delphi upgrade, the Tezos protocol has become significantly more attractive for DeFi applications and experimentation with complex smart contracts due to dramatically reduced gas costs, Alfour said.

Decentralized Finance (DeFi) and Decentralized application (DApps) have gained momentum since early this year. The demand for the DeFi ecosystem grew greatly and even raised concern for Ethereum gas prices. To eliminate this from happening again the Ethereum Network is going to launch ETH 2.0. Tezos upgrade might help DeFi builders cut down on cost and to use the Tezos blockchain more.

Tezos

Tezos is an open-source platform for assets and applications backed by a global community of validators, researchers, and builders.

Darma capital is one of the several companies planning to offer intermediated staking that would let stakers have access to their capital through it’s LiquidStake initiative. This solution will allow both retail and institutional stakers to delegate their capital and to still maintain the control via using their funds as collateral to receive USD coin (USDC) loans.

“With LiquidStake you can have your stake and eat it too,” added Andrew Keys, co-founder of Darma Capital. “And in that regard, [stakers] probably are looking for fiat to maintain their life expenses. So that’s the problem we’re trying to solve.”

LiquidStake’s solution is exceptional to other staking derivative proposals since they do not plan on creating new tokens to represent the bonded Ether (ETH).

“The time window for Phase 1.5 — we can all flip a coin on this — is 18 months, 36 months, somewhere in that realm. So it’s a relatively short time frame with an end date. And so when you start to tokenize assets where you only have a short [life span], the difficulty there becomes what kind of liquidity would be there for that type of token.”

To achieve its aim, LiquidStake is partnering with other staking providers such as Bison Trails, ConsenSys CodeFi and Figment to handle the actual validation process. Open law and Lukka will help with the legal and Tax management proceedings. The company also works through the familiar mechanism of margin calls and liquidation.

Prospective stakers would have to stake through LiquidStake to become eligible for all those benefits attached to the system which includes the lending service.

“The idea behind the launchpad is to make the process of becoming an eth2 validator as easy as possible, without compromising on security and education”- Ethereum Foundation

The launchpad will allow users to stake Ethereum to confirm transactions on the ETH 2.0 testnet, Medalla. Stakers will do the same on the Mainnet when it will be launched later this year or early next year. 

The foundation pointed out that Validators will need to understand how to store and safeguard private keys because unlike their parties stakers like Coinbase, a Validator gets to generate the keys offline themselves and the keys are to be stored properly. If access to these details is lost for some reason, then access to funds is also lost. The launchpad includes a disclaimer just to make sure you clearly understand what you’re getting into as a Validator. You also get to sign a form that indicates that you clearly understand that you will have to manage your own keys and any amount of Ethereum staked cannot be moved by a Validator for a particular amount of time. 

He stated his opinion in a tweet where he also states that Bitcoin is on the verge of a major break out both in the near term and long term. He did however note that he believes that ETH would lead this time.

In another chart, he showed that Ethereum had already broken or ended the multi-year bear market against Bitcoin.

Speaking about owning ETH, he said

I don’t yet own ETH but feeling the need to think about adding some. My primary vehicle remains bitcoin.A rising tide will lift all boats most likely. We’ve been waiting patiently for the breakout for some time. Who knows is if breaks out now  but the clock is ticking…

Pal in April had also said that it’s possible for Bitcoin to be worth $1 million in 3 years time with a possible market cap of $10 trillion.

Ethereum

Ethereum is the second most popular cryptocurrency in the whole crypto space. Recently , ETH has gained some attention because of the announcement of the launch of ETH 2.0 which would come with Staking on the network and also solve the Scalability issue.

The Ethereum Decentralized Finance (DeFi) has also made the protocol more popular. It is reported that ETH addresses generated recently have surpassed Bitcoin.  

These partners or participants are “designed to incorporate feedback and feature results while designing and building the Codefi staking API ahead of the Ethereum 2.0 launch”- stated the announcement. 

The Codefi staking software is built on a trusted software stack Pegasys Tekm. The Codefi staking among other things will offer API integration, 24/7 active support, white labeled UI which will provide metrics and report while still ensuring that the network maintains a 99% (minimum) uptime for Validator on the ETH 2.0.

Partners

The first batch for the Codefi staking Pilot Program includes : Binance, Crypto.com, DARMA Capital, Huobi Wallet, Matrix Port, and Trustology.

With staking on Binance, users can receive staking rewards without needing to set up nodes, or worrying about minimum staking amounts, time lengths, or any catches. Users deserve the rewards that their coins can earn them. With the eventual launch of Ethereum 2.0, we are excited to support staking for all of our ETH holders on Binance,” said Changpeng Zhao (CZ), CEO at Binance

Ethereum’s upgrade to proof-of-stake will be a pivotal moment for both Ethereum and the Web 3.0 ecosystem. We look forward to teaming with ConsenSys as they support the technological progression and DARMA addresses the financial impact of ETH locked assets and rewards staking through staking-swaps and collateralization,” said James Slazas, CEO of DARMA Capital.

Alex Batlin, CEO of Trustology “We believe that ETH2.0 represents a step change for decentralised finance, both in terms of performance and scalability, that will spearhead the long awaited mass adoption, along with the opportunity to earn interest on ETH via staking. ETH2.0 brings to the forefront the need for bank-grade secure, but lightening fast, custody solutions.  Thanks to our custom HSM firmware in HSM, we are able to lead the market in offering a fast and scalable custodial wallet solution both for investors looking to stake on ETH2.0, and for validators involved in staking operations.

Ethereum has delayed the launch of ETH2 staking for quite a while now and many are still reluctant to believe it will ever happen, but according to developers on Twitter, it is closer than many would imagine.

Ethereum Developers Say ETH2 Is Close

On April 17th multiple Ethereum developers tweeted about the Topaz testnet which represents the full ETH2 phase 0 mainnet configuration. This testnet will test deposits of the minimum 32 ETH required for staking. If all goes well, we should see ETH2 phase 0 launching in quarter 2.

What Does This Mean For The Price Of ETH?

Many people are anticipating the launch of Ethereum staking and stacking ETH in preparation. 2020 has been a great year for ETH so far and has been the top gainer out of the top 3 crypto’s nearly every time there is any movement.

In the beginning of 2020, it was announced that over 1 billion dollars had been locked up in DeFi and this is increasing rapidly. With the launch of ETH staking, there will be even more ETH locked away. This will remove A LOT of the ETH in circulation and create an increase in demand for the cryptocurrency coin.

With demand increasing and supply decreasing, chances are ETH will be one of the best performing crypto assets of 2020.

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