In the midst of the biggest bull rally in its history, Ethereum is going through its biggest update to date. After the Ethereum Foundation launched the first phase of implementation of the new version of the cryptocurrency, ETH 2.0, at the end of 2020. And now, after more than two months in operation, it seems to be a success. Well, more than 3 million Ethereum tokens support ETH 2.0, as reported by Glassnode.

The advantages of ETH 2.0

Despite the criticisms that have always existed around the levels of centralization in Ethereum, due to the control exercised by the Ethereum Foundation over its development. The truth is that the influence that Vitalik Buterin’s team maintains on cryptocurrency has allowed it to be updated with respect to the times. A process that could not be carried out in Bitcoin.

The best proof of this is found in the development of ETH 2.0, the new version of the cryptocurrency that will be rolled out in phases over the next few years. With this new version, the Ethereum Blockchain hopes to improve significant performance issues. Allowing the massification of decentralized applications that work on its blockchain, without facing high commissions and delays in transactions as is currently the case.

To this end, the most important change made by ETH 2.0 is the transition from a Proof of Work trade execution method to a Proof of Stake system. With which, the Ethereum Foundation hopes to streamline transactions within the Ethereum Blockchain. This update received a great reception from the community from the beginning, with more than 3 million Ethereum tokens supporting this new version at this moment.

3 million Ethereum in contracts

And it is that, to participate in the staking of this new version of Ethereum, the users of the cryptocurrency must lock up a certain amount of ETH tokens in smart contracts within their Blockchain. In this way, the tokens in these contracts become part of the staking process, generating profits for those who blocked their Ethereums, and therefore contributing to the mining and maintenance process of the network.

However, participating in this process is not easy. Well, to be a transaction validator in the new version of Ethereum, you must have at least 32 ETH tokens to block in smart contracts. Despite which, hundreds of users around the world have assumed this cost, reaching the amount of 3,000,000 million Ethereums staking in ETH 2.0, according to figures from Glassnode.

Over 3 million Ethereum backs ETH 2.0.  Source: GlassnodeOver 3 million Ethereum backs ETH 2.0.  Source: GlassnodeOver 3 million Ethereum backs ETH 2.0. Source: Glassnode

In this way, the success of the first steps of the new version of Ethereum is confirmed. Showing widespread support from the community, which provides security and confidence to the ETH 2.0 implementation process.

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