• The value of the Ethereum 2.0 Deposit Contract has surpassed $30 billion

  • As of now, the Ethereum 2.0 deposit contract has over 9 million ETH, which is equivalent to approximately $30.2 billion.

    Users Put $30 Billion Into ETH 2.0

    The Ethereum 2.0 deposit contract has locked in 9 million ETH.

    This deposit contract enables users to transfer funds from the Ethereum Proof-of-Work mainnet to Beacon Chain, a Proof-of-Stake variant of the blockchain that is running concurrently. The Ethereum core team has been running Beacon Chain alongside the Proof-of-Work mainnet, which currently hosts all Ethereum dApps, since December 1, 2020.

    The much-awaited “merge” refers to a future event in which the Ethereum mainnet begins using the Beacon Chain for consensus, effectively abolishing Proof-of-Work inside the Ethereum ecosystem.

    According to the most recent on-chain data on Etherscan, a total of 9,008,082 ETH have been locked in the Ethereum 2.0 deposit contract. At current ETH values, the deposits amount to approximately $30 billion invested under the first phase of Ethereum 2.0–also known as Serenity.

    More than 280,000 validators on Beacon Chain participated to the 9 million ETH deposit. To become a validator, a user must deposit a minimum of 32 ETH, which is presently worth roughly $108,000.

    The Ethereum Future Roadmap

    Ethereum, the largest public blockchain, intends to transition to Proof-of-Stake consensus, which forces validators to stake their wealth on the network in order to confirm new transactions. In comparison, the current consensus mechanism, known as Proof-of-Work, certifies transitions by utilizing miners, which use computing power from specialized hardware chips to solve complicated computational problems.

    It is envisaged that the gradual transition to Proof-of-Stake would result in faster, cheaper, and more energy-efficient blockchain transactions. ETH 2.0 will also allow Ethereum to use sharding, a scaling strategy that divides the network into smaller chunks.

    Recent Additions: Arrow Glacier and Kintsugi

    The Ethereum community has been working on tooling to enable a smooth transition and to check for potential issues in the deployment prior to joining the two chains.

    In the run-up to the Proof-of-Stake merging, two significant events occurred in December 2021. The Ethereum Improvement Proposal-4345 was the first. The EIP-4345, codenamed Arrow Glacier, was launched on December 8. This upgrade pushed Ethereum’s “Difficulty Bomb” release date back to June 2022, from December. The Difficulty Bomb is a feature that is planned to make Ethereum Proof-of-Work mining more difficult and less profitable. By disincentivizing miner opposition, the technique is meant to enable a seamless transition to Proof-of-Stake. The EIP-4345 update also included a timeframe, implying that the Proof-of-Stake integration might take place by June 2022.

    Second, Kintsugi, a public testnet for ETH 2.0, was introduced on December 20. This testnet allowed the Ethereum community and users to publicly experiment with post-merge Ethereum in order to uncover any problems. In a Twitter post on Tuesday, Ethereum engineer Marius van der Wijden stated that the team discovered and solved flaws in the ETH 2.0 client software that hampered nodes’ ability to sync with the network.

    The specific date of the merger is unknown, but it is largely expected to take place this year, with a probable date of June.

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