The Ethereum (ETH) 2.0 beacon chain has been online since December 1, 2020. The Ethereum update is far from complete, however, and the problems have only just begun. Some exchanges, such as Coinbase, are therefore planning to tackle the problems of converting from ETH to ETH2. They should allow ETH2 users to stake their tokens without having to wait years to be able to withdraw their holdings.
Coinbase bridges Ethereum
In a post published on November 30, 2020 on their blog, Coinbase announced that the exchange plans to deploy staking and conversion services for ETH 2.0. Once the infrastructure is in place, customers of Coinbase will be able to convert their tokens ETH towards ETH2 and, thus be able to benefit from staking.
Coinbase indicated that although the tokens ETH2 remain blocked on the beacon chain, the platform will allow trading between ETH, ETH2 and other cryptocurrencies available on the exchange.
Additional details will be communicated closer to the launch of these features.
Return of intermediation with Ethereum 2.0
This announcement came the day before the deployment of the beacon chain, the first step in the network upgrade. Ethereum.
This upgrade will mark the shift from a Proof-of-Work consensus to a Proof of Stake on the network.
According to the teamEthereum, Proof of Stake offers a greater degree of decentralization while reducing the chance of a successful attack to 51%.
The launch of phase 0 was confirmed on November 26, 2020 when the deposit contract totaled the required level of 524,288 ETH.
The custodians of these tokens will not be able to withdraw them before the end of phase 1, a process that can take a few years.
Several companies, like Dharma Personal-Financial.com, plan to offer intermediated staking services – which is paradoxical given that we are basically staking on a blockchain – to allow users to access their ETH without having to wait for this long delay.
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Ether took advantage of the beacon chain launch, rising above $ 600 the day before. The launch of Phase 0 of Ethereum 2.0 has taken longer than the initial schedule. Will the schedule be respected for the deployment of the next phases? Intermediation is indirectly back on a decentralized network like Ethereum, until ETH 2.0 users can withdraw their blocked assets for staking.
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