Is ETH 1.0 likely to be brought down when ETH 2.0 is released?

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Steve Anderrson
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain. Join the official channel of thecoinrepublic, For the latest news updates: https://t.me/thecoinrepublic

Ethereum 2.0 gears up for its final preparations for its launch, which mainly includes deposit contract and testnet, many of the observers for this release are wondering whether ETH2 will have any similarities to ETH1. Ethereum also in plan to launch Proof of Stake (POS) beacon chain which is a whole new blockchain that can be depicted as midway between a testnet and a mainnet or also called a dummy blockchain.

Anybody can transmit ETH to this blockchain by sending it to the deposit contract once it is out, which then basically terminates this ETH and gives you the same amount on the beacon chain.

It is effectively called migration and not a fork, which concludes that there will be no two coins, although this ETH is motionless and is basically locked which makes it just for staking, making it know as locked ETH. There was some mumble in the Devcon conference talking about exchanges providing liquidity for ETH 2.0. The current exchange platforms are confused on whether to name the upcoming version of Ethereum as ETH or ETH2 or Beth. Since proof of work (POW) will be running for a minimum of 3 years as same as the POS chain, that means to say if ETH is transferred to POS it cannot be changed to POW.

The ETH 2.0 co-ordinator, Danny Ryan recommended that this regard is considered as a Policy run rather than the technical one, mainly because it is not possible. Ryan shared that “it would require 1.0 clients to be light clients of 2.0 and finalize 1.0 with 2.0 and expose beacon chain state root to 1.0 [and] add additional consensus rules to 1.0 and 2.0 to handle the reminting on 1.0 with proof of burn on 2.0.” It is told to be the same thing as transfer to the beacon, but in contrary making ETH on POW or POS non-recognisable.

Vitalik Buterin, co-founder of ETH 2.0, and the game planner of ETH 2.0 Justin Drake have explained that it would be brought into the picture by end of 2020. But Joseph Lubin of ConcenSys shared that both ETH 1.0 and ETH 2.0 will be glued together and then released by end of 2020.

It is still in strife whether to add ETH 1.0 and ETH 2.0 as two different coins on exchanges, although  ETH 2.0 is named as the better version of ETH 1.0, both are based on two different networks entirely, namely POS and POW, through which direct exchanges or transfers cannot be made, and requires non-validator addresses or beacon chain addresses. Technically exchange of such kind would be similar to direct exchange to Bitcoin. Also, it is in doubt whether there will be two different wallets that will be used or a single one capable to do the necessary is more efficient on the Exchange platforms.

It is not likely that both ETH 1.0 and ETH 2.0 can go hand in hand, to maintain the same value as of now ETH 1.0 should maintain its supply and price after the launch of ETH 2.0, if supply of ETH 1.0 becomes less it is most probably know that ETH 1.0’s price will definitely rise, only if the demand for ETH 1.0 remains the same or increases, which is less likely to happen due to its competition from ETH 2.0 which has better purposes than staking like its counterpart.

For now, it is known ETH 2.0 is being launched for the betterment of Ethereum Blockchain, to give unmatched efficiency to its users and to its supporting projects, the launch of ETH 2.0 shouldn’t be a whirlpool to pull down ETH 1.0 and both shouldn’t clash to drown the whole project.

More is to be known and much-awaited about this new launch.

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