The amount of Ether locked in the Ethereum contract 2.0 sees a 22.29% increase since the first week of September 2021 from 7.4 million ETH to 9 million ETH
Increase To 9 Million Ether
Ethereum hits another milestone. According to data from Etherscan, the amount of Ethereum in the Ethereum Contract 2.0 has increased to 9 million ETH. At current prices, 9 million ETH means 30 million dollars.
What Is Ethereum?
Ethereum is a decentralized blockchain. Ether is the name for it’s cryptocurrency. Decentralized means that the power of decision-making is in the hands of an individual as opposed to a central authority.
Developers can build several decentralized finance apps or Defi on the Ethereum platform. Ethereum runs on the concept of smart contracts. Smart Contracts, like regular contracts, are terms of the agreement. The only difference is that a Smart Contract is executed as a code on the Ethereum platform.
What Is Ethereum Contract 2.0?
The Ethereum Contract 2.0 or the Beacon Chain is at the core of its transition to its latest version. Ethereum hopes to be a fully functioning proof-of-stake network. Proof-of-stake is a less energy-consuming version of Ethereum 1.0. Ethereum 1.0 was a proof-of-work model.
In the Proof-of-work model, it isn’t easy to have many transactions going on simultaneously. The process consumes a lot of energy. For a diverse platform like Ethereum, this can slow down the speed of transactions on their network. The main difference between both models is the amount of energy consumption. Proof-of-work is the older and slower version.
According to current news, the deposit contract of ETH 2.0 has over 9 million ETH. This amount is locked in the new contract. It can be spent only when the latest version of ETH, i.e., the Beacon Chain, merges with the original Ethereum blockchain.
Importance of Blockchain Validator
A blockchain validator is a person who is responsible for verifying the transactions that happen on the network. To be a validator on ETH 2.0, users need to contribute 32 ether (Ethereum cryptocurrency). The Proof-of-stake model calls users who want to validate transactions as validators. Proof-of-work model or the old model called such users’ miners’.
Miners or validators are critical in the crypto world to keep the blockchain running. They earn rewards by validating new transactions on the network.
The amount of ETH stored in the Ethereum Contract 2.0 shows validators’ confidence in the platform’s transition.
Ethereum set out to transition from a Proof-of-work to a Proof-of-stake model in 2020 and hopes to complete this process by 2022. Year-to-date, Ethereum’s price is up over 150%. However, during the last 30 days, Ether has lost 18.5%. The two-week stats indicate Ether has lost 17.5% in value against the U.S. dollar. Despite the loss in value, Ethereum continues to dominate market capitalization.