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RESEARCH: The Potential Ripple Effects of Ethereum 2.0, Explained

CoinDesk Podcast Network

CoinDesk

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4.7698 Ratings

🗓️ 10 October 2020

⏱️ 40 minutes

🧾️ Download transcript

Summary

The virtual event invest: ethereum economy takes place on Wednesday, Oct. 14. CoinDesk’s Christine Kim spoke to colleagues Michael J. Casey and Aaron Stanley about the most compelling and under-discussed topics about Ethereum 2.0 headlining next week’s conference.   From the dynamics of staking to the architecture of sharding, there haven’t been many topics Ethereum 2.0 core developers have shied away from discussing over the past five weeks on “Developer Perspectives: Ethereum 2.0.”  See also: 3 Things You Should Know Before Staking on Ethereum 2.0 Each discussion, however, has sparked new questions about the ramifications of Ethereum’s transition to proof-of-stake on the crypto markets and the broader blockchain industry.  “There’s a lot of unanswered questions about how the markets are going to behave,” said Casey, CoinDesk’s chief content officer. “Do we end up with a split, [with] two versions of ethereum or at least two tokens that trade differently in the marketplace?” Casey added that financial engineers in the decentralized finance (DeFi) space will likely seek to unlock the liquidity of staked ETH on Ethereum 2.0 before token transfers are officially enabled on the network. What new DeFi products are created, their attributes and, most important, their impact on the value of ETH remain to be determined.  Along with lingering questions over how the markets will react to the launch of Ethereum 2.0, there’s also uncertainty over how the launch will affect the competitive landscape for dapp users and dapp developers in the crypto industry.  “What does the multi-chain future look like?” asked Stanley, CoinDesk’s managing director of events content. “If Eth 2.0 succeeds, … what does that mean for all these other [smart contract] chains out there? Are they going to go away or just cease to exist? I don’t think that’s the case.” With the recent popularity around yield farming and liquidity mining on Ethereum, Stanley also questioned what the real incentives are for users holding large amounts of ETH, upwards of $11,000 worth, to stake on Ethereum 2.0 when they could earn “100x returns farming ‘hotdog coin’ or whatever the meme coin of the day is.” See also: Yearn, YAM and the Rise of Crypto’s ‘Weird DeFi’ Moment These questions are pertinent to the discussions happening next Wednesday at invest: ethereum economy. Keynote speakers headlining the virtual conference are founder of Ethereum Vitalik Buterin and U.S. Commodity Futures Trading Commission Chairman Heath P. Tarbert. To register for the event, click here.  CoinDesk Research has recently published an updated report about the launch of Ethereum 2.0, as well as recent developments on the existing Ethereum blockchain. Download it for free on the CoinDesk Research Hub. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Transcript

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0:00.0

What does like the multi-chain future look like?

0:05.0

The last couple of years we've had the whole, like, ETH killer narrative and all these chains

0:10.0

kind of popping up with the ethos of like we're going to sort of be Ethereum but better.

0:15.0

You know, I think if ETH2 succeeds, I think there's an argument made that, well, Ethereum has won the race.

0:20.0

But what does that mean for all

0:22.5

of these other chains out there? Are they just going to, like, just go away? Are they going to

0:27.0

cease to exist? Well, I don't think that's the case. This episode is brought to you by

0:34.4

crypto.com, nexo.io, and elliptic.co.

0:38.3

Hello, everyone. You're listening to Developer Perspectives, Ethereum 2.0 from

0:44.4

Kondesk podcasts. I'm Christine Kim, a CoinDesk research analyst, and today is the final episode

0:51.5

of our series about the hotly anticipated Ethereum 2.0 upgrade.

0:56.8

For the past five weeks, I've chatted with the folks inside the Ethereum developer community

1:01.4

to take a look behind the scenes at what comes next.

1:05.4

For this episode, we're going to be discussing what remains unanswered about the Ethereum

1:10.2

2.0 upgrade and what

1:12.1

is left unknown about its rollout, its impact on crypto markets, as well as its launch.

1:18.7

Joining me for the discussion are two CoinDesk colleagues of mine who have spent the last

1:23.2

few months planning intensively for CoinDesk's Ethereum Economy event. I have Michael J. Casey,

1:30.0

the chief content officer of CoinDask. Hi, Michael. Hello, Christine. Happy to be here.

1:35.6

I also have Aaron Stanley, managing director of events content at CoinDes. Great to have you on

1:41.1

the show, Aaron. Thanks for having me. In the process of preparing for

1:45.3

invest Ethereum economy, which is happening this upcoming Wednesday on October 14th, by the way,

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