Ethereum 2.0 is coming, but Ethereum 1.0 will not disappear

Ethereum 2.0 will be launched this year. Although enterprises will not use it immediately, the rise of DeFi will play an important role. Many members of the blockchain community have been anxiously waiting for the arrival of Ethereum 2.0. Ethereum 2.0 is a major upgrade to the Ethereum blockchain and is expected to be launched in multiple stages. Phase 0 is planned to be launched this year, which is the first expected version on the Ethereum 2.0 roadmap.

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Although still speculating on the exact launch date, Ethereum co-founder Joseph Lubin recently revealed that Ethereum 2.0 will indeed come soon: “Ethereum 2.0 is coming soon. We are now in the middle of what we think is the final testnet. Among the many Ethereum 2.0 clients developed by different teams, we have performed many smooth operations on the testnet.”

Lubin further commented that if the problem of the Ethereum 2.0 “Medalla” testnet is not resolved, he is worried about the launch of the mainnet of the Ethereum 2.0 beacon chain.

Ethereum 1.0 will never disappear

Lubin mentioned that Ethereum 1.0 will always exist. Because Ethereum 2.0 is just a natural transition from Ethereum 1.0. Ethereum 1.0 will never disappear. Ethereum 1.0 is evolving into Ethereum 1.5. It will be stateless and easily absorbed by Ethereum 2.0. ‘’

Ethereum 1.0 is a staking platform that makes it possible to launch Ethereum 2.0 that uses a consensus mechanism for proof of equity. Therefore, these two platforms will be closely connected. Lubin further mentioned that Ethereum 2.0 will become the “largest and most complex DeFi application” on Ethereum 1.0.

In addition, Ethereum 2.0 will improve the scalability, throughput, and security of the Ethereum public main network, which are missing in Ethereum 1.0. The highly anticipated beacon chain will become the backbone of Ethereum 2.0.

Although Ethereum 2.0 has made significant progress, it is important to point out that enterprise adoption may take some time. The third phase of Ethereum 2.0 will take place in the second half of 2021 or sometime in 2022. Once the third stage is reached, companies will have the ability to successfully participate in the client from Ethereum 1.0.

The Enterprise Ethereum Alliance is an organization that allows enterprises to use the Ethereum blockchain. Its executive director Dan Burnett told Cointelegraph that people’s interest in Ethereum 2.0 is relatively high:

Considering the continued development of the decentralized financial ecosystem, explosive market value and new use cases far beyond DeFi tokens, this is not surprising.

In terms of deploying Ethereum 2.0, Burnett said that most of the enterprise Ethereum alliance members will focus on security, data privacy, data custody, and token management. He explained: “Once the tools and support services make it easier and more straightforward to use Ethereum 2.0 nodes, we hope that members will pay more attention to the adoption of Ethereum 2.0.”

Therefore, as enterprise adoption becomes a reality in the next few years, solutions like the Baseline protocol and other tools that support transaction privacy and confidentiality will continue to evolve.

The interest of businesses in investing in Ethereum is noteworthy in many ways, but in general, this indicates the emergence of a new trend: the rise of decentralized finance and how this makes the entire decentralized economy possible.

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Digital Nomad

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