Better to avoid Ethereum 2.0? IT expert warns of changes in staking
The start of the first phase of Ethereum 2.0 (also known as „Phase 0“ or „Beacon Chain“) is imminent.
Raul Jordan from Prysmatic Labs, a developer group working on the integration of Ethereum 2.0:
“We can probably do a feature freeze by mid-October, so all we can do is work on security improvements and UX before we go live. If everything goes well, November still looks good for a start from our point of view. “
Danny Ryan of the Ethereum Foundation repeated the start date in a recent blog. Ryan comments that he and Vitalik Buterin, the founder of the blockchain, recently published the Ethereum improvement proposal for the upgrade – suggesting a „soon“.
Audits are also performed to ensure that the upgrade code and staking mechanism are secure.
For many, this is a good thing: In the past few weeks, the Ethereum blockchain has experienced an immense overload due to a parabolic upward trend at DeFi. This congestion has shown that there is a need for solutions to scale Ethereum.
Should Ethereum 2.0 be bypassed? An IT specialist thinks so
With the launch of Ethereum 2.0, users can stake 32 ETH to secure the new proof of stake chain and receive ETH rewards for it.
Many thought this was a valuable option – especially for those looking to amass more ETH over time, but there have been some concerns lately, as Chase Wright warns about staking.
Wright, a long-time cryptography specialist, claims to have participated in all of the Ethereum 2.0 test networks so far using a wide variety of software.
Some of his concerns are as follows:
The average validator / staker of the Medalla testnet is currently in the red due to a bug in a client that has been used by most, if not all, of its users. This means that most validators would have lost part of their capital if it were real ETH – in contrast to the Testnet ETH. Wright estimates that this could lead to „DAO Part 2“.
There is no uniform API that „allows a validator node from a client to speak to a beacon node from …“.
The test networks carried out so far “were HEAVY centralized and in no way resemble what the main network will / should look like”. This means that the code may not be fully tested, so a productive beacon chain may become vulnerable if the system is overloaded.
Wright’s final point is that staking Ethereum 2.0 compared to DeFi and other earning opportunities could be risky in relation to the reward offered:
“I mean, I can invest in a lot of things these days … DeFi is blowing up. The bridge is a one-way street, I’ll close my ETH and lose all opportunity costs … is it worth it? „