By Solomon Odunayo
The upgrade of the Ethereum network to Proof-of-Stake (PoS) has been a well anticipated and speculated event for the cryptocurrency ecosystem.
The unspecified launch date of ETH 2.0 has not stopped the price of the digital token ETH from trending positively in the crypto market. The delay has not also discouraged new users from joining the Ethereum ecosystem in numbers.
According to CoinMarketCap, Ethereum (ETH) has broken above $350 resistance level, trading at $355.84 at press time, with a 3.45% price upsurge based on 24 hours estimation.
Vitalik Buterin Sheds Light on What Ethereum 2.0 Will Be Like
In a recent episode of the Unchained podcast, the co-founder of Ethereum, Vitalik Buterin, shed light on the prospect of Ethereum 2.0 after its official launch.
He also spoke expressly on the possible impact of the upcoming upgrade on the overall security of the Ethereum network.
Vitalik Buterin:
“In Proof of Stake, for example, one of its disadvantages is that it’s definitely a bit more technologically complex because you have to deal with validators. You have to figure out what’s the process for validators logging in and what’s the process for validators logging out. And there’s a lot of just kind of management happening in the protocol.”
Impact of the Introduction of Staking on ETH’s Price Trend
Basically, the impact that the introduction of staking will have on the price of ETH and monetary policy can only be noticed after the upgrade is complete. Regarding this fact, Vitalik Buterin said:
“It’s hard to kind of figure out what concrete actions could reduce price volatility, for example. And if you look at Ethereum versus a lot of these other coins, price volatility necessarily that high, like it’s statistically higher than Bitcoin, but is lower than a lot of these other smaller cryptocurrencies”
The co-founder of Ethereum (ETH) further stated that “[Network security] is a big part of the reason why we’ve been working really hard to try to make the protocol simpler. I definitely think that it’s as simple now as it was a year and a half ago, which has been a very significant thing.”
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