During the year 2020, there were different outstanding events in the world of cryptocurrencies. Concerning Ethereum, it cannot be said that it went unnoticed during that year, since Vitalik Buterin’s blockchain, in addition to the ecosystem developed around it (which includes the native token called Ether), had a memorable year. In many aspects. Here we will share some highlights of Ethereum during 2020.
Ethereum 2.0 release
The most anticipated event by the community around Ethereum was the launch of its version 2.0, which will put mining aside by incorporating the proof of stake (PoS), which would replace the current proof of work (PoW). On December 1, 2020, phase zero of this chain was launched with the Beacon Chain activation, which will control the validator nodes and put the proof of stake into operation. It is estimated that by 2022 the project will be completed; once it reaches this point, the entire blockchain will merge with the new Ethereum 2.0 blockchain, and the entire network will be governed by this new protocol.
Its price was multiplied by almost 5 times
Ether’s price increased by around 478%, from January 1 to December 31, 2020, going from the initial price of 130 USD to 751 USD. While there was a lot of interest in Ether as equity and investment backing, it cannot be denied that some sectors joined this ecosystem for speculative purposes. Another notable fact was the increase in addresses, which is believed to have been due to the increase in the use of DeFi protocols, platforms in which users can send tokens or ETH to different smart contracts.
Proposal for improvement and development
Ethereum developers included technological proposals to facilitate the use of the network. One proposal was EIP-1559, a different mechanism to pay commissions to lower the costs to operate on Ethereum. Likewise, zk-rollups were developed, a second-layer cryptographic method that makes the weight and cost of transactions lighter. Another proposal was the EIP-3156 application, which would incorporate cheaper and safer flash loans on the DeFi platform.
Amount of Ethers in circulation
The number of Ethers in circulation generated some controversy on Twitter in August; it was said that the figure was around 112 million; however, this figure varies according to the block explorer consulted. Ethereum’s circulating cannot be known simply, since unlike Bitcoin or other cryptocurrencies, in Ethereum, there does not seem to be a single mechanism for calculating supply.
Up to $14 per commission on average
Another notable fact was that on September 2, the average figure of 14.5 USD per commission was reached, then on the 17th of that same month, the launch of the UNI token was announced, in which the equivalent of 1,300 USD was given to those who had ever used the platform, that day the figure reached $ 11.62 per commission.
The «DeFi mania»
2020 was marked by DeFi or decentralized finance; the world experienced an explosion of these exchanges, automatic aggregators, launches of governance tokens, agricultural yield protocols, among others. Many protocols were developed by Ethereum and saw the light of day before being reviewed by security auditors. For this reason, concerning DeFi, there were also high rates of hacks, loss of funds, and scams during said year. Another outstanding fact is that DAOs expanded in various forms and in the number of users, based on smart contracts, providing transparency, autonomy, security, immutability, and decentralization to different platforms, especially financial ones.
Different artists, athletes, and football clubs came to the Ethereum blockchain in collectible tokens. Non-fungible tokens or NFTs represent a single asset, which is a useful mechanism for preserving digital scarcity and verifying works of art. The momentum of NFTs and DeFi go hand in hand. These can be fully digital or tokenized versions of existing assets; they serve as proof of authenticity and ownership. An example of this was the athletes Neymar or Mbappé, who are collectible figures on Ethereum, thanks to the Paris Saint Germain football club with the decentralized application Fantasy Football.
What do you think about this topic? Do you know of any other major Ethereum events during 2020?
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