The Ethereum 2.0 Beacon Chain went live on Tuesday afternoon UTC after ETH holders contributed enough ETH — more than 867,000 ETH so far, far in excess of the 524,288 required — to start the chain.
That’s a big deal, but if you’re wondering what you need to do to get ready, don’t worry.
“You don’t have to do anything with the ETH you already hold,”
That’s true for a number of reasons, the main one being that, at least until further upgrades, Ethereum 2.0 doesn’t do much from a user point of view. As the explanation expert from the Foundation puts it, “It won’t be like the Ethereum mainnet today. It cannot handle accounts or smart contracts. “
Instead, the so-called Phase 0 introduces proof of stake, where holders of ETH lock their crypto for a chance to get a share of the block reward.
The next step is to make shard chain, ideally by 2022, which would theoretically allow the blockchain to handle more transactions per second than Ethereum’s proof-of-work, which often crashes. In 2022 or 2022, Phase 1.5 will be reached, at which point Eth1 and Eth2 meet and the new blockchain should be widely usable.
Ethereum community members who wish to contribute temporarily can not only stake ETH to the nascent network but also run clients and earn bug bounties by testing each upgrade before it goes live.
The extended launch means that anyone who bets ETH for the launch also has nothing to do but wait. The ether will be there for a while.
But what if you have your ETH in exchange?
Leading Exchange Supports Ethereum 2.0
Several leading exchanges, including Coinbase and Huobi, recently announced support for Ethereum 2.0.
“Coinbase customers will be able to convert the ETH in their Coinbase account to ETH2 and earn staking rewards,”
Surojit Chatterjee of the San Francisco-based exchange on Nov. 30. Coinbase plans to roll out the feature in 2022.
Jamie Pitts, a Fellowship of Ethereum Magicians who has facilitated discussions between Eth2 developers and the wider Ethereum community, said, “This is an exchange-generated IOU product, not a genuine tradable asset.”
Since we still need some upgrades from ETH running on the Ethereum 2.0 blockchain, he thinks Coinbase could be at the forefront. However, the implementation details are still being discussed.