ETHEREUM 2.0 IS HERE!!! Do this now - developer explains

Guys ethereum 2.0 is finally here. I've, been waiting on this day for a long time. This is such a massive leap forward for blockchain technology and it's incredibly bullish for ethereum on the whole. So you know i did a video while back on this channel, about how i predicted that ethereum 2.

0 would launch in 2020, and it looks like that prediction is coming true. So i want to make this video as a blockchain developer, who works with the ethereum protocol on a daily basis to talk about what's, going to happen with this major change? What this could mean for the price of ethereum and what you need to do so before we get into that.

If you're new around here, hey i'm gregory and on this channel i turn you into a blockchain master. So if that's, something that you're interested in then smash the like button down below for the youtube algorithm and subscribe to this channel.

And if you want to learn how to master blockchain step by step from start. To finish, then, i can show you how to do that over at dab university dot com forward, slash boot camp all right, so there's, a lot to talk about this video.

So let's, go ahead and jump in so first like what is ethereum 2.0. Well, if you have used ethereum before, like whether you've purchased, ethereum cryptocurrency or used a d5 application or anything like that with smart contracts, then you've used ethereum 1.

0, and you might have noticed that it's. A little bit slow kind of clunky and expensive to use but ethereum 2.0 is the new and improved version of ethereum that gets the blockchain ready for prime time.

It makes ethereum fast and scalable so that it can support applications that make it ready for mass adoption. This was the original idea for ethereum all along and it's. Finally, here, or at least the first part is so let me explain so: ethereum 2.

0 is a multi-phase project. Alright, so basically, you can't just flip a light switch and then turn on ethereum 2.0. It's, a really complex thing that has to be rolled out in multiple phases, because when we talk about ethereum become really fast and scalable.

Those benefits come from different things, all right, and you can think about those like puzzle pieces. So, in order for a theater to be really fast, we need staking. We need sharding and lots of other stuff.

Ethereum is basically going to take each piece of this puzzle and put it together until it's, ready to deliver the entire thing all right. So when i say ethereum 2.0 is here the entire thing's, not shipped okay, but we're at the beginning of that process.

So where are we in that process? Well, the deposit contract for e 2.0 just went live this week. All right, so it's now accepting deposits so that we can migrate ethereum to proof of stake. So let me explain what i mean by that.

So this deposit contract is for phase zero for the beacon chain. So this is migrating ethereum cryptocurrency from the chain that we're on right now to this new beacon chain and there's. Lots of different reasons for this.

But one of the biggest reasons is so that you can get your ethereum validator node set up to become a staker on ethereum 2.0 and that's. One of the main things this deposit contract does that just went live this week.

So let me explain what that means, so one of the biggest changes in ethereum 2.0 is that it's, moving its consensus model from proof of work to proof of stake, so proof-of-work is the consensus model that bitcoin has where you have miners and That's.

What ethereum 1.0 has right now, but it's, moving to proof of stake, which is going to be a huge fundamental change in the blockchain. So the biggest is that miners become validators and so ethereum won't.

Have any miners anymore, like bitcoin? Does they & # 39? Ll have validators instead, and what these validators do is instead of mining new blocks by solving puzzles like bitcoin. Does that's? What proof of work is they actually stake? Ethereum cryptocurrency to the network in order to validate transactions that's? What proof of stake is they participate in the security of the network? By doing this? Basically, they take their cryptocurrency, they lock it up with their blockchain node, and this helps them preserve the security of the public ledger and they're incentivized to do this because they earn a passive income reward for doing this.

Just like you can earn passive income from mining, bitcoin and ethereum. You can also earn passive income by becoming an eth validator, by locking up your eth with your node and helping secure the network.

And so if people want to become validators, then they have to move their ethereum from the old chain to this new beacon chain and that's, one of the biggest things that this deposit contract does. It gets things ready for phase zero.

So we can begin this migration, so we can see the progress of this here on the ethereum website. This is launchpad.ethereum, and this shows us how much each has currently been transferred to the uh deposit contract.

So 39 173. It's almost 40 000 and it needs uh about a half million each and about 16 000 validators in order to launch the main net. So it has to meet this threshold uh. But when it does it's expected to go.

Live on december first, so you can check this out. You know, watch this progress for yourself and then also look at the uh staking rewards here. So what does ethereum 2.0 mean for the price of ethereum? So as always, this is not financial advice.

I'm, not telling you to buy ethereum. I'm, not a financial advisor. I'm, a developer, etc, etc, etc. But i want to give you a few perspectives on this, because this is what people are talking about, and i think a lot of this stands to reason.

So the first is that the ethereum price will likely increase because of staking. So when i show you this explanation here that you know miners become validators well, when you stake ethereum in order to earn that passive income reward to protect the network, then a certain percentage of the ethereum circulating supply will actually get locked up.

Okay, so it'll, stop moving. Basically, these people, aren't going to sell ethereum, and so, if that happens, then think about the economics of sublime demand. If a certain amount of supply is um, you know locked and people, aren't going to sell it and the demand for ethereum at least stays the same.

Then that would cause the price to increase. Now a lot of people think that uh more people will desire to have ethereum because they can stake it and be a validator and earn that passive income rewards.

That could also cause the uh demand to increase. So if the demand increases and the supply effectively decreases because some of it's, being locked up with proof of stake, we'll, see how much, then that could also cause the price to go up as well.

So the other perspective on this is that you know cryptocurrency is very narrative driven. You know. People talk about positive narratives, basically pumping cryptocurrency prices. Well, that could definitely have a huge effect on the price of ether, because we've been talking about ethereum 2.

0 for years, like literally years, and now it's. Finally, here and that creates a lot of positive sentiment for ethereum uh. You know in its cryptocurrency ether and could likely have a really positive impact on the price as well, and this is really good for d5 as well, because you know diva had a huge moment this year, a big aha moment for a lot of people.

That saw like wow. We can really use these apps on top of ethereum and some of these people felt frustrated because the apps are clunky, slow and expensive to use. But if ethereum 2.0 really delivers on its promises, then these applications can get a lot better.

So that's, really great for ethereum, it's really great for d5, which could have a huge impact on the sentiment as well. So what do you need to do? Well, if you're, just a casual holder of ethereum, then you don '

T really need to do anything. Okay, because we're in this multi-phase rollout. You know we're, just starting uh phase zero right now and there's, nothing that you have to do if you don't want to participate in the beacon chain, launch okay, but if you do want to participate In the beacon chain launch you want to become a validator.

You know you want to get in this early. Then there are several things that you need. Okay, so the first thing to know is that this is a no turning back scenario. So if you want to participate in the beacon chain, then once you send ether to the deposit contract and actually migrate to the beacon chain, you can't get it back.

So you have to be really sure that you want to do this. All right, so, if you want to become a validator, you're, also going to need 32 ethers. So you need to understand the risk involved with this. So, at the time record, this video 32 ether is let's, see here 442 times 32.

uh. It's about 14 000 usd all right. So you know if you're comfortable with sending a 14 000 us dollar to this deposit contract that you can't ever get back at least for a while, then uh. You might want to wait this one out.

So i personally plan on doing this because i plan on becoming a validator on the main net, but you really need to understand the risks involved with this before you go through. And so, if you decide that's right for you and you actually want to go through this, then what can you do? Well? The first word of caution is don't just send ether to this deposit contract address.

Okay, you actually want to go check out these resources. I'll, put a link down in the description below, but the first thing you want to look at is this uh, this guide right here so again this is launchpad.

ethereum and you want to click on the deposit tab. So this will walk you through everything you need to understand. After you watch this video, you'll, you'll sign up all right. You walk through all these steps.

It ' Ll. Explain about your responsibilities as a validator. Slashing you know key management, all that kind of stuff. Okay, you can also check the final checklist here all right. This will make sure that you have everything you need in order to become an ethereum validator all right for staking all right.

The hardware requirements uh different clients all right, so if you want to run an ethereum 2.0 node, i actually did a video on my channel recently. That shows you how to set that up so check that out.

If you haven't already, but you can also see a complete list of validator clients here all right, and so once you've gone through all that and let's, say you're still trying to Make your final decision on when you whether you want to become a validator now and stake your eth.

You can check out the staking calculator here on the home page at launchpad.ethereum.org, so this shows you the amount of return that you get for, locking your ether up. Okay, so basically the more people stake, the less the reward is and the less people stake, the greater the reward is so there's, an incentive for being early in doing this, like sooner rather than later, because you know the more people come later.

The less rewards you get so you can see here like if, basically, the minimum number of people stake on ethereum 2.0. You know five thousand five hundred twenty four thousand two hundred eighty eight eth you get twenty one percent apr.

So, basically, you get twenty one percent extra ether uh for doing this, and if the ethereum price continues to increase, while this migration happens, you know that's, all extra on top of that price appreciation and that's.

What a lot of people are doing? People are holding each for the long term. They're staking it. They're, getting that extra passive income reward on top of that price increase. Okay. Now, of course, if more people validate on the network, then that api reward goes down and even if everybody stakes like everybody uh, the maximum possible number is still about five percent, as this is actually really ingenious, uh security mechanism, because it incentivizes people to do this.

To preserve the security of the network? Okay, because you know people start dropping off and they say oh yo there's, not enough returns. Then the incentive appears again for people to start staking because the returns increased all right, so anyways that's, an explanation of how the returns work - and this is something you can uh watch out for yourself.

If you're trying to decide if you want to stake or not so you can basically see the network status here, how many people are currently staking and then uh the staking rewards at that point in time all right, so that'S an overview of what's, gonna happen with ethereum 2.

0 and, like i said, i'm, so excited this is here. This is such a huge leap forward for blockchain technology on the whole and it's. Incredibly bullish for ethereum, so you know just a quick reminder: this is not all of ethereum 2.

0 launched right now. It's. Just the very beginning. We're, getting ready for phase zero because this deposit contract has been launched. People can start moving their ethereum from you know the chain right now to this beacon chain to get set up for staking all right, so it's, going to be a little while, before the entire network, rollout happens again, you can'T just flip a switch, but this is a major moment that's super exciting and is really going to have a lot of energy to push this space forward.

So i hope you like this video. As always, you know smash the like button down below subscribe to this channel. It really helps these videos out, so more people can find them and learn about blockchain, and if you want to get your hands dirty with this stuff, you know learn about the technology.

So you can set up your own validator node and become a developer. You know it's, one of the best ways to earn money in blockchain uh. Then how can you get started today? All right, you can go to my youtube home page.

You can find any of my free courses there. They're like udemy courses, but they're totally free for you to use all right and if you like those - and you want to take the next step or hey - maybe you want to take a massive shortcut entire step-by-step program on How to become a blockchain developer, then i can show you how to do that over at daphneversy.

com forward. Slash boot camp, i'll. Show you how to build your own blockchain application so that you can land a high-paying job become a freelancer uh. You know build your own project and the best part is you don't even have to be a programmer to get started.

Today, i've, helped people with zero coding knowledge become real world blockchain developers all right, so that's. All i've got and until next time, thanks for watching dap university.