Alex Mashinsky, founder and chief executive officer of Celsius Network, the crypto borrowing, and lending platform has stated to CoinTelegraph that about 25,000 Ether was funded by Celsius to guarantee that the Eth2 deposit contract had sufficient funds to launch Ethereum 2.0 on the expected time.
The highly expected release of Eth2 is planned to happen in the coming week. From December 1, Ethereum 2.0’s proof-of-stake blockchain called “the beacon chain” is affirmed to work alongside the Ethereum network.
Even though few users of the blockchain community were doubtful regarding the December 1 date for the launch of the beacon chain, a stunning 524,288 Ether (ETH) by 16,384 validators has been accumulated in the Ethereum 2.0 contract. Consequently, there is confirmation from The Ethereum Foundation regarding Ethereum 2.0’s beacon chain anticipated launch.
$15+ million – The Amount Funded by Celsius
As per Mashinisky, the amount funded by Celsius was equal to $15,125,000 during the transaction. He further stated that the deposits were made from the Celsius’s stock of community assets, explaining the usage of funds, which will be used to produce a higher yield for the users of the community once the Ethereum 2.0 network is formally launched. Presently, users of Celsius can make up to 7.21% Annual Percentage Yield on Ether retained in the Celsius wallet. Celsius founder stated:
“We already have 230 thousand users on the Celsius network, along with 3.3 billion dollars worth in assets. These users are putting in ETH, allowing the network to earn yield on it in many different ways. The 25,000 ETH contributed to the proof-of-stake Ethereum network will generate another source of yield for our community.”
Although impressive, it’s essential to take into account the additional deposits that were moved to the Ethereum 2.0 deposit contract despite the target being achieved. To take a holistic view, the co-founder of Ethereum, Vitalik Buterin, recently posted a tweet on November 24 indicating the stunning number of transactions taken place across the Ethereum network over time.
Additionally, he shared that the growing number of community members of Celsius modeled off ETH, factoring the importance of returning back the Ethereum network he said:
“We built our CEL token on the Ethereum blockchain and used it to scale and become one of the fastest-growing companies in crypto. We are proud to inaugurate the ETH 2.0 Genesis and contribute the last building block with 25,000 ETH from the Celsius community and be a helping hand to a company that helped us scale our own project.”
Can Ethereum 2.0 overcome its challenges?
While the Ethereum beacon chain is ready to launch on December 1, some challenges still persist. For instance, even though expandability problems are anticipated to be solved since ETH uses a proof-of-stake agreement algorithm, the safety of a few Ethereum smart contracts remains uncertain. This particularly surfaced with the development of decentralized finance (DeFi) projects.
As such, a recently created working group by the entity Ethereum Alliance known as “EthTrust Security Levels Working Group” has been aiming at making a set of specified standards to guarantee Ethereum smart contracts are secure to use. The working group in due course of time desires to create a digital registry for safe smart contracts to be used by entities.
Moreover, some members are still concerned that the advantages wouldn’t be visible instantly because of the progressive launch of Ethereum 2.0. Therefore the requirement of layer-two scaling solutions has turned evident.
Keeping challenges aside, Mahinsky showed eagerness for quicker scalability from the Eth2 network:
“Ethereum 2.0 will scale everything 100 times faster than now. The ability to move Ethereum from a proof-of-work to a proof-of-stake network will open a world of new ideas and opportunities that couldn’t be achieved before due to scalability issues.”