Key metrics point to Ethereum price surge

The Ethereum developer community is nearing the launch of Ethereum 2.0, a major multiyear milestone for the blockchain network. Ethereum 2.0 will mark the start of a shift from the miner-reliant proof-of-work consensus algorithm to a proof-of-stake (PoS) algorithm. In a PoS system, miners are not needed to mine blocks and verify transactions. Instead, users – or stakers – verify data on the blockchain, Cointelegraph reported.

For now, there is no specific date at hand for the release of Ethereum 2.0, according to its testnet coordinator, Afri Schoedon. “The final spec is not implemented in any client and we didn’t launch a coordinated testnet yet,” Schoedon said.

Ethereum co-creator Vitalik Buterin also clarified that Ethereum 2.0 is on track, but if the client developers expect it to be done by the third quarter of 2020, then that is likely to be the case. However, three key metrics show that investors and users are highly anticipating the integration of Ethereum 2.0 within the year’s end. The metrics are rising growth of Ethereum addresses, increasing market demand for Ether (ETH) and surging on-chain user activity.

What is Ethereum 2.0?

When Ethereum’s client developers launch Ethereum 2.0, they will essentially release a new Ethereum network that will run in tandem with the existing network. Ethereum 2.0 will use sharding as its base scaling solution. District0x describes sharding as the most complex Ethereum scaling technology because it divides the blockchain network into many portions, or “shards,” and allows each portion to process data on its own. Sharding speeds up data processing on the Ethereum blockchain network because node operators can simply verify data on their own shards and not on the entire blockchain.

Ethereum 2.0 is taking longer than the implementation of most blockchain network upgrades. But its complexity is also unprecedented, and as such, longer periods of testing are highly important. Responding to criticism that the Ethereum developer community is “changing” its narrative and delaying the release of Ethereum 2.0, Buterin said: “People often complain that the Ethereum narrative ‘keeps changing’. This is false. Rather, the Ethereum narrative is inherently pluralist, containing bets that at least one of many kinds of applications will grow and prosper.”