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Ethereum’s Vitalik Buterin addresses network’s imminent transition to Ethereum 2.0

Jibin George

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Source: Pixabay

At the recent Ethereal Summit, Vitalik Buterin the creator of the second-largest cryptocurrency by market cap, Ethereum recently addressed the launch of Ethereum 2.0. The yet to be launched phase would witness Ethereum’s transition from Proof-of-Work to Proof-of-Stake. Ethereum intends to achieve maximum scalability modifications through its latest phase and is scheduled to be launched in early 2020.

Buterin elaborated on several other aspects including the fate of second layer protocols in a Q&A session with Ejaaz Ahamadeen from ConsenSys. He started off by terming second layer solutions as an “interesting topic”, however, he further went on to reveal that the Layer 2 protocols with data off-chain would be encountering a “hard time in generalizing and there is some economic reasoning behind that.”

Further Buterin went on to elaborate on the pros of Layer 2 as it would make it simpler to attain “full generality back” while receiving massive scaling gains. He went on to add that this would make way for an equilibrium “that’s halfway in between being a Layer 1 application, with all the benefits of cost and having Layer 2 application, with costs and benefits of that.” Buterin further said,

“And they think when the base chain becomes more sharded, there will be less need for fully off-chain layer 2 things. I think there will be value for layer 2 things because they do provide you genuine efficiency and even things like repeated payments”

Additionally, Buterin highlighted the transition of dApps to Eth 2.0 as to how the dApps would move from Eth 1.0 to Eth 2.0 chain. Regardless of the transition, the final decision was yet to meet consensus. He revealed that Ethereum 2.0 would constitute three phases, 0,1 and 2 which would allow developers to start from scratch on the new chain. Developers would be able to move Ether over to  Eth 2 chain. He further said,

“But then 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 kind of much more friendly to preserve existing applications.”

Buterin further detailed that the new proposition was to take the state root from Ethereum 1 side and do a hard fork on the Ethereum 2 side. He asserted,

[…] that takes that state root moves it over on to the Eth 2 side creates an account, premine it with as much as Ether there is on the Eth 1 side and from there it’s like all the applications will be able to continue writing but basically by being executed by this program on the Eth 2 side that basically continues to intercept and process blocks.”

Jibin is a news editor at AMBCrypto. With over three years of experience as a political writer, he primarily focuses on the political impact of crypto developments. A graduate in Law and International Relations, his writing is by and large focused on cryptocurrencies from the political and financial perspective. A Liverpool FC fan. YNWA

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Altcoins

Litecoin’s ailing price prepares for breach of descending channel

Namrata Shukla

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Source: Pixabay

Litecoin noted a sharp fall on 15 November, a fall that caused its price to fall from $59.97 to $55.63. This 7.24% fall was followed by the price of the coin climbing up. However, it fell soon after the rise. The price of Litecoin at the time of writing hovered at around $58.07 with a market cap of 3.75 billion, while noting a trading volume of $2.90 billion.

Despite the falling price, however, Litecoin noted the formation of a bullish pattern that might provide a boost to its price.

Short-term

Source: LTC/USD on TradingView

Source: LTC/USD on TradingView

The hourly chart for Litecoin [LTC] saw a descending channel extending along with the falling price. The pattern, characterized by two sloping trend lines, marked the lower highs of LTC at $60.26, $59.16, and $59.03 and lower lows at $59.38, $58.94, and $58.53. As the price remained constricted within the downward trend, a breach in the pattern might lead to the price of LTC surging.

The 50-day moving average underwent a crossover with the 100-day moving average, indicating a bullish move. The 100-day moving average dominated the LTC market for over five days and the coin lost 4.08% of its value. However, with the 50-day MA leading the charge, an upward surge might be coming soon.

Source: LTC/USD on TradingView

Source: LTC/USD on TradingView

The MACD indicator noted strong bearish momentum in the market, as the MACD line remained dormant under the signal line. On the other hand, the Relative Strength Index highlighted a change in tides as the signal line bounced back from the oversold zone and was pointing up.

Conclusion

Litecoin’s falling price might find respite with a breach of the descending channel. However, the coin might undergo further devaluation before it could note a spike.

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Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.