Bitcoin isn’t the only cryptocurrency making news for increasing in value recently, as Ether has increased in value dramatically as well and Ethereum 2.0 is on the way. What’s Ethereum 2.0? Well for starters, Ethereum is a decentralized blockchain-based system for trading its prime crypto Ether. Ether is the most widely traded and popular crypto following bitcoin, and has the potential to catch up if it continues on the upward trend it’s currently on. Ethereum 2.0 is an updated version of this blockchain system that users have been patiently awaiting for some time, with lots of new features and updates to entice anyone involved or looking to get started in the cryptocurrency world.
One of the major updates to this new system is that it will get rid of the old proof-of-work mining and introduce mining onto its platform. For those unaware, proof-of-work mining is a process of adding new blocks to the blockchain, summoned by miners and accepted into the network once the miner is able to come up with a proof-of-work that’s accepted by the network. What Ethereum 2.0 will do instead is a much simpler process called staking, which is just holding cryptocurrencies in your virtual wallet to support security of the network and users ultimately receive rewards in exchange for doing so.
As part of this update, Coinbase users will also be able to stake more tokens including Algorand, Cosmos, and Tezos. This new Ethereum 2.0 system first went live in Detroit for those who have been long waiting to stake their Ethereum and other viable tokens on the platform. This new system of staking on Ethereum 2.0’s platform does come with the cost of not being able to withdraw Ether directly once it has been deposited into the Beacon Chain, but using an exchange is a viable method of getting around this issue.
This update to Ethereum 2.0 shows not only hope in the future of the cryptocurrency market, but that it is becoming more sophisticated and updating with its most avid users’ needs. For those looking to invest heavily in the future of cryptocurrencies, platforms such as Coinbase and more specifically Ethereum 2.0 once it becomes more widely available to the public might be a good option for you. If you are looking to join the waitlist yourself to be one of the first to take advantage of this opportunity once it becomes available in your region, follow the highlighted link here.