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Ethereum 2.0 is expected to launch early 2020, Vitaly Buterin confirmed while speaking at the Ethereal Summit. The transition from 1.0 to 2.0 is expected to see Ethereum shift from Proof-of-Work (PoW) to Proof-of-Stake (PoS).
“Eventually there would come a point where we will want to basically migrate Eth 1 system over on to Eth 2 and one to two years ago, the thinking was just like […] let the Eth 1 side just kind of die-off on its own and everyone will move over. But we figured out an approach that’s much friendlier to preserve existing applications,” said Buterin.
He explained that the planned transition will play out in three phases: 0, 1 and 2. Once the switch is finalised, developers will start working on a completely new platform. Speaking about the phase zero, Buterin added:
“Everything was finalised except for things that come up during the security audits. The clients are now talking to one another. The next step is to make sure they can maintain a public network at scale. We’re talking about potentially hundreds of thousands of validators aggregating a huge number of transactions.”
He also commented on criticism that Ethereum 2.0 has already attracted that the offered rewards will be too low to incentivise validators to keep the network running.
“There have been a lot of misconceptions there. There are people throwing around the 1 percent statistic. In reality, the maximum reward is 1.7 percent per year, only in the case where literally everyone is staking. In the case that a smaller number of validators are staking, the rewards go up a bit,” he explained.
In other news, Ethereum’s blockchain hosted a transaction that settled an e-invoice between the Icelandic retailer Nordic Store and IKEA Iceland. The transaction, which marks a significant step forward in business payments and finance, was completed on the platform Tradeshift, a major operator in supply chain payments and marketplaces.
“We see smart invoices not just as useful for lowering administrative hurdles in business-to-business (B2B) cross-border transactions, but for building new financing models that makes it easier for enterprises to improve access to credit and improve cash flow. This is an important step forward,” said Gert Sylvest, the co-founder of Tradeshift.
Last week, we focused on the consequences of one of the largest weekly bearish candles that Ethereum has recorded recently, as the world’s second largest digital coin lost nearly 20% of its value in one week only. The price chart below highlights the potential upside for Ethereum following a break of the symmetrical triangle.
The chart below shows a break that bulls are hoping to complete this week. For this to happen, the bulls need to close above the triangle's resistance of $175. Following the break of the resistance on the hourly chart, the bulls have also pushed above the ascending trend line (triangle’s support), however, it stopped at 38.2% Fibonacci resistance. In case of a sustained break, look for the test of the 50% Fibonacci retracement near the $190 handle.
The major target, and resistance, is still the ascending trend line (the red line in the first ETH price chart), which currently sits just below the $200 mark. For this to happen, the bulls have to make sure they first clear the triangle resistance, as well as the 38.2% Fibonacci retracement.
On the downside, the supporting block ($160 - $165) is expected to provide significant support to bulls midterm. The most recent swing low is expected to act strongly as well as the many stops that are located just below it.
Furthermore, numerous layers of Fibonacci retracement lines create an additional support block, which ranges from $126 to $148. However, in order for a scenario of such bearish nature to materialise in the Ethereum market, Bitcoin would have to to break its major support as well and drag the entire cryptocurrency market lower with itself.
At this point, we are not dismissing this scenario, however, it is less likely to happen. In case of a sustained bullish break, watch out for a break of the underside of the major ascending trendline.
Bitspark is a bankless money transfer ecosystem that enables businesses and people to cash in and cash out cryptocurrencies across Asia and Africa.