ZT Labs: Talking about the impact of ETH 2.0 on the industry

July 26 03:42 2022

ETH core developer Tim Beiko said in a conference call on 14 July that the ETH Goerli test network will be merged on 11 August, that the TTD for the Goerli merger is expected to be selected by the start of next month, that the Bellatrix update may be on 4 August and that the TTD appears on 10 August Goerli is the last ETH test network merger, with the main network merger scheduled The main network merger is scheduled to be held on 19 September.

According to Nansen data, at the time of writing, the number of ETH 2.0 deposit contract address pledges has now reached 13.1 million and the number of unique verifiers is 767,000.

When the Ethereum merger goes live, its issuance rate will be reduced by approximately 90% as it will no longer be required to give miners a mining bonus. The community refers to this situation as “Triple Halvening”, which is equivalent to the “halving” of 3 bitcoins happening at the same time.

If “The Triple Halvening” is combined with EIP-1559’s BASEFEE burning mechanism, it is conservatively expected that Ethereum’s issuance will actually become deflated during periods of active user activity.Deflation means that the currency will have more and more purchasing power over time, and the amount of ETH in circulation will be less than the amount needed to actually circulate, helping to drive up the price of ETH.

Back to the chart, ETH 2.0 online on September is expected to be good for the Mainstream and Altcoins ushered in a general rise in the market, ETH and ETC lead the mainstream, single daily rises of more than 10%, especially the second layer of the network, such as Matic, OP rose by more than 20%, on the contrary, the price of BTC is a flat performance, but also from the side to show that the stock of funds is not enough to drive the  price of BTC.

The narrative of ETH 2.0 definitely qualifies as one of the milestones in the history of blockchain development. The ETH merger means that ETH has officially entered the deflationary phase, and ZT Labs believes that the ETH merger benefits the following 5 panels.

(1) ETH, after the ETH merger, its incremental volume will be reduced from about 12,000 incremental pieces per day to 1,280 , which is 90% less than the previous . In addition, the electricity consumption of node operations is also greatly reduced compared to miners, and some of the mined Ether may be re-invested in pledges to improve returns.The much reduced incremental and selling pressure following the merger means that ETH has officially entered the deflationary phase.

(2) ETC, which will take over the ETH miners’ arithmetic after the ETH merger, and most of the original ETH miners will become ETC miners and will not be randomly selling machines at a loss.

(3) Staking, Staking is a property unique to the POS consensus mechanism. Almost all new public chains are adopting the POS , ETH 2.0 is going to completely transform ETH into POS.In the POS mechanism, the holder simply pledges the token to the network and may enjoy the network’s inflationary interest, after POW to POS pledging will become the instant requirement for ETH 2.0 nodes.So look for the tokens in the pledge segment, such as LDO, SSV.

(4) Layer2 (Rollup), Layer2 is a total solution to improve the performance of the Ethernet network (Layer1), Vitalik emphasizes that its need to scale the Ethernet native scaling (perform sharding) quickly will take a long time, Rollups is the simpler and most realistic short-term scaling technology, data sharding can make Rollups more extensible. With the ETH 2.0 merger, the Ether scaling solution Layer2 will be at the heart of Ether for a long period , Optimism, Arbitrum, Zksync, Starknet.

(5) DeFi, the blockchain ecosystem is blossoming with competition, but one of the reasons why ETH is still untouchable as the king of DeFi is undoubtedly that most of the early projects in DeFi’s major lanes have become entrenched in ETH and have grown to become the leaders of the day, as if they have become the backbone of the ETH ecosystem.

The current market is in a bear market phase, the field capital will not let go of any opportunity that can be speculated, the above five about ETH2.0 derivative plate can be concerned.

This article is for reference only and does not contain any investment advice.

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