Part 1 what is Ethereum 2.0?

Ethereum is a blockchain platform born in 2014 that enables programmers to build decentralized ledger applications (DApps). Confusingly there is both a native currency/token “ether,” only for  transactions on the platform, and an investable asset called ETH.

The Ethereum 2.0 upgrade began many years ago and got some reality with Beacon Chain in December 2020,  existing alongside Ethereum’s mainnet. This is like a public beta where validators can register their interest by staking  32 ETH (worth over USD 96k as I write). Staking means committing funds for two years or more only to be released when Ethereum 2.0 is fully ready; it is a big committment that few retail investors can do.

Ethereum 2.0 on mainnet will require sharding (a technically complex job of dividing up the blockchain into smaller chains known as shards) for efficiency.

There are two narratives related to this roadmap:

– Ethereum bulls say this is like the move from DOS to Windows in the PC era, technically complex and hugely valuable. The killer apps such asNFTs and loaning/borrowing are already proven.

-Ethereum bears say this is a pipedream, and will not happen. Re killer apps, remember when ICOs where the proven use case for Ethereum?

Some subjects are too complex for our short attention spans, so we do 4 posts one week apart, each one short enough not to lose your attention but in aggregate doing justice to the complexity of the subject. Stay tuned by subscribing.

Part 1

Part 2

Part 3

Part 4

Some may not be published yet.

Daily Fintech’s original insight is made available to you for US$143 a year (which equates to $2.75 per week). $2.75 buys you a coffee (maybe), or the cost of a week’s subscription to the global Fintech blog – caffeine for the mind that could be worth $ millions.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.