The Ethereum 2.0 staking contract now holds the most Ethereum across all wallets. The term ‘staking’ refers to a method of committing cryptographic tokens to the blockchain in order to protect the network and generate freshly minted currencies. Staking money on the Ethereum network may be likened to holding back resources until Ethereum 2.0 is further advanced.
The current state of the Ethereum blockchain as well as Ethereum staking both currently reflect the biggest allocations of Ethereum holdings.
More than 6.73 million ETH (worth about $21.2 billion) in Ethereum 2.0 staking has been achieved, meaning that the network now has more ETH wrapped than all the “wrapped Ethereum” that has been created so far.
Check who's #1 ETH holder now guys! pic.twitter.com/3isDLkrv7I
— Alex Svanevik ✨ (@ASvanevik) August 16, 2021
As more ETH is staked, it indicates that trust in the developers’ capacity to complete the long-awaited Ethereum 2.0 network upgrade is growing.
The merge will happen sometime before the end of 2022, although no specific date has been determined for it yet. Unlike wrapped Ethereum (which presently has 6.69 million tokens), 1:1 tokenized copies of ordinary Ethereum currencies that may be put to use immediately are contrastingly known as Ethereum tokens. To utilize a blockchain to create peer-to-peer lending, borrowing, and trading, these coins need to be wrapped or tokenized.
Technical Aspects of the Ethereum Merge
The Ethereum Mainnet will become a new shard that utilizes proof-of-stake instead of proof-of-work once it is ready. Once the mainnet becomes live, the entire history and present status of Ethereum will be accessible through smart contracts. This will provide for a smoother transition for all Ethereum holders and users.
This is a major moment in the evolution of Ethereum: Proof-of-work will finally be abandoned, paving the way for a more environmentally friendly version of Ethereum. In this respect, Ethereum will have closed one significant gap on the path to complete security, scalability, and sustainability laid forth in the Eth2 vision.
To simplify the move from proof-of-work to proof-of-stake, one implementation objective of the merging is to make the code simple. Because of this emphasis on the transition, developers are trying to limit any new features that might hold them up. For the moment, many functionality enhancements will have to wait, such as the ability to withdraw staked ETH. After the merging is complete, one or more post-merge “cleanup” upgrades are anticipated to be made to handle these features.
Once the merger is complete, it will take some time until functionality such as withdrawing staked ETH is enabled. These are in the pipeline for a future update that will be forthcoming.
The community will continually evaluate the need for additional rounds of shard chains, possibly allowing for increased scalability.