The possible ripple effects of Ethereum 2.0 explained

The virtual event invest: Ethereum Economy will take place on Wednesday, October 14th. CoinDesk’s Christine Kim spoke to colleagues Michael J. Casey and Aaron Stanley about the most compelling and least discussed topics around Ethereum 2.0 as headlining next week’s conference.

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This episode is sponsored by, and Elliptic.

From the dynamics of deployment to the architecture of sharding, there weren’t many topics that Ethereum 2.0 core developers haven’t discussed about “Developer Perspectives: Ethereum 2.0” in the last five weeks.

See also: 3 Things You Should Know Before Choosing Ethereum 2.0

However, any discussion has raised new questions about the impact of the transition from Ethereum to proof-of-stake in the crypto markets and the broader blockchain industry.

“There are many unanswered questions about market behavior,” said Casey, CoinDesk’s chief content officer. “Do we have a breakup in the end [with] two versions of Ethereum or at least two tokens that are traded differently in the market? “

Casey added that decentralized finance (DeFi) financial engineers will likely attempt to unlock the staked ETH’s liquidity on Ethereum 2.0 before token transfers are officially activated on the network. What new DeFi products will be created, what properties and, above all, what effects they will have on the value of ETH have yet to be determined.

In addition to the lingering questions of how the markets will react to the launch of Ethereum 2.0, there is also uncertainty about how the launch will affect the competitive landscape for Dapp users and developers in the crypto industry.

“What does the future look like with multiple chains?” asked Stanley, CoinDesk’s executive director of event content. “If Eth 2.0 is successful … what does that mean for all of these others? [smart contract] Chains out there? Will they go away or will they just cease to exist? I don’t think that’s the case. “

Given the recent popularity of income farming and liquidity depletion at Ethereum, Stanley also questioned the real incentives for users who own large amounts of ETH, valued at over $ 11,000, to wager on Ethereum 2.0 when they hit the hot dog coin ” 100x Returns Farming “could earn” Or whatever the meme coin of the day is.

See also: Longing, YAM, and the rise of Crypto’s ‘Weird DeFi’ moment

These questions are relevant to the discussions that will take place next Wednesday at invest: ethereum Economy. The keynote speakers at the virtual conference will be Ethereum founder Vitalik Buterin and US Commodity Futures Trading Commission Chairman Heath P. Tarbert. To register for the event, click here.

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CoinDesk Research recently released an updated report on the launch of Ethereum 2.0 as well as the latest developments in the existing Ethereum blockchain. Download it for free from the CoinDesk Research Hub.

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