Vitalik Buterin Explains the New Tech Behind Ethereum: USD/ETH (ETH=) 2.0
Eth 2.0 is the next iteration of the ethereum blockchain, incorporating novel protocol designs such as proof-of-stake (PoS) and sharding. Last December, Buterin released a blog post on ways to speed up the launch of Eth 2.0, which has been in the works for years.
PoS consensus algorithms reward cryptocurrency investors for holding the network’s native currency. Holding the currency validates blockchain transactions and protects the network itself. Eth 2.0 scientists expect sharding – a method of grouping ethereum holders together for transaction validation – to improve transaction speed on the network.
In the December blog post, Buterin described “stateless clients,” a method that changes the way current account balances, contract code and other information is stored on the network. Stateless clients work by mathematically proving this data’s existence and validity without storing all the data itself.
In other words, the Eth 2.0 blockchain would be lighter to operate.
“The clients basically do the same verification that it would normally do except it doesn’t store the state,” Buterin told CoinDesk. “It just kind of grabs the state in real time and verifies it using [the client’s] Merkle proof.”
The project’s lead developers recently announced plans to launch Eth 2.0 as early as this summer. That launch would cover Phase 0 and the Beacon Chain, the first component to building out the new PoS blockchain.
As part of the switchover from the current Proof-of-Work (PoW) network, known as Eth 1.x, Buterin and the Ethereum Foundation have proposed running the current network on Eth 2.0’s skeleton until the latter is fully built out. Ultimately, Eth 1.x will exist as basically a giant receipt of pre-2.0 transactions.
“You can copy that state [Eth 1.x] and run it inside of a different Proof-of-Stake chain,” Buterin said. “The account balance and all the applications keep running as is, but the Proof-of-Work chain as it exists would be gone. And there would not even be two separate chains: Eth 1.x transactions and Eth 2.0 would all be in the same block.”
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 208.74.
The projected upper bound is: 291.28.
The projected lower bound is: 235.57.
The projected closing price is: 263.42.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 34 white candles and 16 black candles for a net of 18 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 44.9585. This is not an overbought or oversold reading. The last signal was a sell 6 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 62.42. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 2 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 28. This is not a topping or bottoming area. The last signal was a sell 5 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 1 period(s) ago.
Rex Takasugi – TD Profile
FOREX ETH= closed up 1.740 at 260.770. Volume was 15% below average (neutral) and Bollinger Bands were 139% wider than normal.
Open High Low Close Volume___
259.200 264.890 253.800 260.770 106,451
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 265.83 190.77 176.92
Volatility: 123 80 75
Volume: 383,221 173,628 90,398
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FOREX ETH= is currently 47.4% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume into ETH= (mildly bullish). Our trend forecasting oscillators are currently bullish on ETH= and have had this outlook for the last 46 periods.