- Vitalik Buterin shares details of the state of ETH1 and ETH2 post-transition and how their states will be linked
- He says ETH1 will be valueless after transition and would eventually die out
- He added that the transition process will be smooth and “could even be engineered so that wallets that talk to clients via RPC do not need to change anything at all.”
The crypto-community in unapologetically ruthless sometimes, and way too hopeful for its’ good during other. At the recent Ethereum Devcon, the developers discussed alarming questions on the coming big transition from Proof of Work (PoW) to Proof of Stake (PoS).
The FUD around ETH 1 and ETH 2, its release date, state of networks, and so on grew considerably over the past few days. The lead developers Vitalik and Lubin were even blamed for selling the Ethereum scam after accepting the knowledge of scaling limitations. Another significant doubt was raised on the state of ETH 1 chain after the transition.
Together these discussions, apparently split, crypto-twitter into two camps: Ethereum haters and backers. The foundation was even blamed for not clearly explaining the process. Hence, its co-founder and the lead developer has now released the details to add clarity.
How will the transition process affect the two chains?
The eth1 chain technically continues but it is valueless; eventually it will die off when the difficulty ice age hits.
Moreover, while the actual transition will take place in 6 hours, the schedule for its occurrence could be two years away. Meanwhile, the foundation will work successfully implementing phase 0-2. The first phase will begin with PoS, while the ETH1 chain will be parallelly running as well. However, the withdrawal will be prohibited during this phase.
Furthermore, for most users, the entire process will happen in the background. Vitalik noted,
From a user’s point of view, ethereum would “feel” the same pre- and post-transition (except that post-transition it would feel smoother due to PoS and EIP 1559).
Post transition, a witness data will be added to any new transaction which will process it on ETH2, rather than ETH1. He also added that the ETH1 system would primarily live inside 2.0. Hence, putting an end to the FUD around the hard-fork like economic situation due to the existence of two chains. He added,
You go to sleep, and when you wake up the transition has happened.
Nevertheless, the process beginning in November will finally initiate PoS on Ethereum, the test version is already out. To benefit from the staking process after Phase 0, users would need to convert their ETH into ETH 1.x. Rewards could be earned in Ether during this process. The withdrawal and its economic value will be enabled after the complete transition.
Do you think that the change in Ethereum will be beneficial to its price? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com