Ethereum welcomes two heavy news in the evening.
Ethereum is welcoming two pounds at night. Developers say that Ethereum may reduce production by 10 times in two years. At the same time, there is news that CME will adjust the Ethereum-related index or launch Ethereum futures trading.
According to the timeline estimated by Justin Drake, an eth 2.0 researcher at the Ethereum Foundation (EF), Ethereum may reduce its circulation by 10 times in two years.
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Drake said that the following is a possible timeline that outlines key node progress:
January 2020: Beacon chain release;
June 2020: eth2 light customers are ready;
November 2020: eth1 fork#1 chooses the fork according to the result of eth2 (conservatively speaking, the circulation will not decrease);
March 2021: eth1 fork#2 circulation will be reduced by 10 times. Drake further stressed that there are several non-technical issues that are difficult to predict. Specifically, these questions include: how fast the beacon chain will get 2 million ETHs (65,000 validators); and how fast eth1 is willing to run in two hard forks.
It has been mentioned that once the PoW method is abandoned, the Ethereum circulation will be reduced by about 10 times, from 2 eth per block to about 0.22 eth per block, depending on how much equity mortgage.
However, the possibility that PoW will be abandoned in 2021 is very small, because there must be a transition period to move the smart contract and many other contracts to the beacon chain of the fragment. It is estimated that full fragmentation will be introduced in 2021, and then it may take a considerable amount of time for the ecosystem to fully transition to the extent that PoW can be discarded.
Once implemented, the idea was to reduce the PoW block to 0.6eth, but Drake said "conservatively, the circulation will not decrease." There will also be a PoW mining difficulty bomb that will start around March next year, and will have to be postponed again. It is not clear whether the reduction in circulation will be synchronized with the previous delay time.
Due to the lack of coding algorithms in Ethereum, decision-making is complex, plans seem to change frequently, and it is difficult to be clear. Researchers at Ethereum did not seem happy to answer questions until the final details were finalized.
Therefore, whether it is a few weeks before the Bitcoin algorithm cuts it in half in January next year, or if the new supply of Ethereum increases at the end of the pledge, there will be some confusion.
In mid-June, Drake said at the bi-week Ethereum core developer conference call that the first phase of the Ethereum network transition to Ethereum 2.0 is expected to be held on January 3, 2020. At the time, the development team was working on a zero-phase code specification – the first transition phase of the Ethereum network, from PoW to the equity proof consensus algorithm, which passed the block verification function from the miner to a special network validator.
According to previous reports, the daily transactions registered on the Ethereum network exceeded 1 million for the first time on June 28, the first time since May 2018. The value of the chain trading of Ethereum hit a monthly trading high in December 2018.
CME adjusts Ethereum related index, or will launch Ethereum futures trading
The second heavyweight that Ethereum is welcoming at night is that CME will launch Ethereum futures trading.
According to the announcement issued by CME on Friday, the Chicago Mercantile Exchange (CME) is adjusting the reference exchange rate and index related to Ethereum, which is expected to be carried out on July 15.
ItBit is the trading arm of Paxos, a New York-based financial technology company that will provide data for CME, along with exchanges Bitstamp and Kraken.
According to sources, the addition of itBit can be seen as a signal that CME is getting closer to launching Ethereum futures, the world's second-largest cryptocurrency. “I think this is preparing for Ethereum futures,” the source said. “They must improve the robustness of their index.”
The source also said that if there is no reliable data, cash-settled futures are easily manipulated or simply cannot represent the actual price of the underlying asset.
“This is an implicit limitation of CME cash-settled futures – always requiring market data for spot exchanges,” the source said.
When asked if Ethereum futures are about to surface, CME replied that the exchange is focusing on the Ethereum Index and the reference interest rate.
The Bitcoin reference rate on the Chicago Mercantile Exchange is the basis for its Bitcoin futures product, which has been losing money since the beginning of the year. According to coindesk, the contract continued to maintain a new sales record in 2019, and user registrations have increased by 30% since the beginning of the year. Exchanges such as itBit, Coinbase and Kraken provide data for BRR.
ItBit began trading Ethereum earlier this year and its market share has gradually expanded. For related issues, itBit has not yet responded.
Source: Shallot blockchain