Blockchain News

Ethereum 2.0 Beacon Chain may speed up enterprise blockchain adoption

img-ads

The highly anticipated security and scalability upgrade to the Ethereum network launched as planned on Dec. 1, marking a huge milestone for the Ethereum community. On the surface, the Eth2 Beacon Chain will help ensure an increase in scalability and capacity across the Ethereum network. However, the initial launch of the Beacon Chain signifies much more than promised network benefits, and could potentially drive enterprise blockchain adoption even further. 

Corey Petty, chief security lead at Status — a globally distributed collective working to build products, tools and infrastructure for Eth2 clients — told Cointelegraph that Phase 0 of the launch of the Beacon Chain represents a significant milestone because many core building blocks such as networking and a proof-of-stake consensus will now be rolled out:

“Beacon Chain is a fundamental requirement for the latter phases of Eth2 and should be tested in isolation. We expect the other phases to be rolled out more quickly after that, while the gradual and phased rollout allows us to ‘soft-start’ the network.”

Proof-of-Stake consensus perks

Although the Ethereum 2.0 network has been launched and is currently being tested in isolation, there is much to be said about the advent of a reliable proof-of-stake, or PoS, network, which Eth2 hopes to demonstrate.

According to Petty, Ethereum 2.0’s Phase 0 activation shows that a significant threshold of Ether (ETH) holders were confident enough to stake 32 ETH each, worth approximately $332 million combined. These funds cannot be accessed until Phase 2 is completed, which Petty noted should be between 2021 and 2022. Petty further said that Ether holders’ willingness to stake for Phase 0 shows they believe the upside of Eth2 is greater than the downside of losing approximately $19,000.

The promises of Eth2 would ultimately allow the network to overcome its dilemma of sacrificing security for decentralization or scalability, which has been the case for Ethereum since its creation in 2015. The network previously relied on a proof-of-work consensus mechanism that made it vulnerable to possible 51% attacks, whereby a malicious group of miners may make changes to the network if they control the majority of the computing power. A recent 51% attack on the Ethereum Classic protocol resulted in $5.6 million worth of ETC being double-spent.

Ben Edgington, lead product owner at ConsenSys, who has been working on developing Eth2 from day one, confirmed to Cointelegraph that Ethereum has been working toward a PoS consensus mechanism since its earliest days. According to Edgington, the Beacon Chain has been in development for two years, noting that this is the coordination layer intended to keep the Ethereum network secure and organized.

As such, Edgington explained that a PoS consensus is more secure than a PoW consensus due to the fact that an attack on the chain will result in stake taken away from network stakers. “We can now put a precious cost on attacking the chain,” he said. Echoing Edgington, Petty noted that security is achieved by active participation in the consensus algorithm. He remarked that once more devices can run on the new network, the Ethereum ecosystem will become more secure, decentralized and scalable.

Enabling enterprise applications

With a PoS consensus mechanism in place, it’s notable to point out that Ethereum 2.0 will enable enterprise-grade applications to run on a decentralized network. This important development provides an alternative to other major enterprise applications that use private, permissioned networks such as IBM’s blockchain, which is powered by Hyperledger Fabric.

In addition to a more trusted and reliable network, Petty explained that Eth2 will enable secure transactional throughput that “more than quadruples Visa’s centralized capacity of 24,000 transactions per second.” This is expected to be the case thanks to the use of rollups.

According to Edgington, rollups are similar to sharding in the sense that the solution provides scalability. He explained that rollups allow for some transactions to be taken off-chain, while leaving just enough transactions on chain to ensure trustlessness. “Something must be on chain to show third-party operators are being honest. This allows for high throughput while ensuring security of the network,” he said.

Specifically speaking, Petty shared that Eth2 will be able to scale approximately 100,000 transactions per second. In addition, the network will provide security, decentralization and lower gas fees. As a result, more enterprises will flock to the Ethereum network, according to Petty, who added:

“Eth2 will work to solve the trilemma that has kept enterprises on the periphery of the Ethereum ecosystem and further open the gates for them to run decentralized applications (dApps) securely and efficiently at scale.”

For example, Ethereum has been an important component of the Baseline Protocol, which is being leveraged by Coke One North America, or CONA, for cross-organizational supply chain transactions. The Baseline Protocol works well with tamper-resistant state machines like the Ethereum mainnet.

John Wolpert, technical steering committee chair for Baseline Protocol, told Cointelegraph that Eth2 will eventually ensure that the Ethereum network won’t slow down under load. “The network won’t slow to the point where a business-to-business workflow has to stop and wait for too much time for on-chain confirmation of any given workstep,” he explained.

Enterprises will not benefit immediately

Wolpert further pointed out that the Eth2 Beacon Chain won’t have an immediate effect of baselining techniques, noting that there is enough headroom on the current public network for projects currently in the works. Meanwhile, Wolpert explained that the successful deployment of the Beacon Chain should give enterprises the confidence that Ethereum is a reliable mainnet to manage baseline proofs.

John Whelan, managing director of Santander Bank and chairman of the Enterprise Ethereum Alliance, further told Cointelegraph that enterprises will start seeing the benefits of Eth2 in terms of scalability, privacy and genuine settlement finality.

However, Whelan also mentioned that the Beacon Chain’s having launched does not mean it is running smart contracts. “We still need the other phases of Eth2 to realize its potential in terms of scalability and cost reduction. However, Eth 2.0 is real. It is not vaporware,” he said.

img-ads

Leave a Comment

You may also like

Blockchain

‘Bizarre Cash Like DOGE & XRP Spike’- Galaxy Digital’s Mike Novogratz Advises of a Crypto Market ‘Washout’

single-image

Apr 16, 2021 10:49&nbspUTC

| Up to date:

Apr 16, 2021 at 10:49&nbspUTC

By&nbspClark

BTC bull & billionaire investor Mike Novogratz has suggested about cryptocurrency market volatility in a brand new interview stemming from the Barron’s & Marketwatch’s ‘Investing in Crypto’digital event collection. Usually, & over the prolonged time period, Novogratz is bullish about BTC & corporations like Coinbase residual rich.

Novogratz Advises of a Crypto Market ‘Washout’

Shares in Coinbase World, Inc. (Nasdaq: COIN) are presently down 5% in the meantime yesterday’s opening & all through the launch billionaire Mike Novogratz rod in regards to the San Francisco agency & the crypto-economy general. Novogratz has been a long-time follower of BTC  & different digital property like ETH as nicely. Simply currently, the crypto funding firm he originated, Galaxy Digital utilized with the U.S. Securities & Trade Fee to listing a BTC exchange-traded fund.

Although talking positively in regards to…

View More Article
Blockchain

Liquity Protocol entices $1Billion TVL in simply Ten days

single-image

Apr 16, 2021 10:42&nbspUTC

| Up to date:

Apr 16, 2021 at 10:42&nbspUTC

By&nbspClark

The “interest-free loans” decentralized loaning protocol these days has a $1 billion worth of locked-up value after it launched on April 5.

The squad behind Liquity Protocol — a DeFi undertaking hurled on April 5 — has concerned $1 billion worth of locked-up worth rendering to statistics from Dune Analytics.

The Pantera Capital-backed Liquity is a Swiss-founded decentralized & governance-free loaning protocol that proposals interest-free loans in contradiction of ETH locked as collateral, with operators necessary to uphold the least collateral ratio of 110%.

Loans are remunerated out within the protocol’s algorithmic secure coin LUSD, which is connected to the price of USD at a one-to-one ratio. The protocol mechanically makes LUSD meet operator demand, & thus far has forged a provide of 480M secure cash, with extra cash being forged than burned apiece day.

The loans…

View More Article
Blockchain

Brian Brooks defends fintech constitution to take care of financial Companies Committee

single-image

Apr 16, 2021 09:27&nbspUTC

| Up to date:

Apr 16, 2021 at 09:28&nbspUTC

By&nbspClark

Brian Brooks has defended the fintech constitution he oversaw whereas heading the OCC, warning heavy-handed crypto legal guidelines might undermine U.S. struggle globally.

Brian Brooks has defended the fintech banking constitution launched whereas he served because the performing controller of the foreign money when legislative meeting Democrats took goal on the license on Th.

Brian appeared as a witness earlier than the Home financial Companies Committee’s fee on shopper Safety ANd financial institutions at an Apr 15 listening to titled, “Banking Innovation or regulative Evasion? Exploring Developments in monetary group Charters.”

The fintech constitution was launched by the office of the controller of the Forex, or OCC, and overseen by Brooks in 2020, allowing financial know-how companies in addition to cryptocurrency corporations to produce loaning and cost merchandise whereas not being overseen by state banking regulators,…

View More Article
Blockchain

Key Variations Between Hyperledger Aries and Hyperledger Material

single-image

This text will make clear Hyperledger Aries vs Material to grasp their fundamentals variations and attainable use case eventualities.

Hyperledger blockchain is without doubt one of the outstanding gamers within the blockchain markets, with 16 initiatives below its wing. Amongst them, Hyperledger Material is without doubt one of the broadly used blockchain platforms in varied enterprise implementations. Hyperledger Aries, however, was an ongoing challenge that turns into lively just lately. In line with Hyperledger, Aries is carefully related to their different 2 initiatives – Hyperledger Indy and Ursa.

Right here, we are going to focus on how Hyperledger Aries and Material are totally different from one another and also will perceive their use instances and key traits.

Enroll Now:Getting Began with Hyperledger Material Course

What’s Hyperledger Material?

Earlier than we evaluate each Hyperledger initiatives, we’ll briefly introduce the 2 initiatives and their traits. Let’s begin…

View More Article
Blockchain

Blockchain Initiative Uplifts Storytelling and Transparency of Honduran Espresso

single-image

Massimo Zanetti Beverage Group has achieved a singular feat by bringing within the “first blockchain espresso” from Honduras. The brand new ‘farm-to-cup’ beverage launched by the Massimo Zanetti Beverage Group is traceable. Now, shoppers might discover a QR code on the packs of “Segafredo Storia” for locating the kind of espresso within the pack, the place of cultivation, and identification of the farmers.

The brand new ‘farm-to-cup’ traceable beverage introduces new norms for transparency into the provide chain for espresso manufacturing. Massimo Zanetti Beverage Group has leveraged the software program capabilities of Farmer Join with the ability of IBM Blockchain for the brand new system. Now, the brand new beverage traceability system can present the journey of the espresso by way of a map created on the idea of encrypted blockchain knowledge. The origins of the map start…

View More Article
Blockchain

Lack of transparency downside in social buying and selling turns into solved

single-image

Apr 15, 2021 12:35&nbspUTC

| Up to date:

Apr 15, 2021 at 12:35&nbspUTC

By&nbspClark

Social buying and selling has been one of many go-to options for newcomers to the crypto buying and selling sector for some time now. Attracted by rising costs and elevated curiosity, lots of retail merchants rush in the direction of the chance to put money into crypto with out actually realizing find out how to commerce, apart from to purchase low and promote excessive.

Nevertheless, buying and selling is extra sophisticated than that, and requires endurance, self-discipline, a sound technique, and fixed vigilance. To not point out tons of analysis, dedication, trial and error, and extra. Since many imagine that the chance is now, and that they don’t have the time to take a protracted highway, they flip to copy-trading, which permits them to repeat high performers’ strikes, and hopefully obtain comparable outcomes.

Sadly,…

View More Article