How Ethereum 2.0 Can Transform DeFi

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James Wo is the Founder & CEO of Digital Finance Group.

against Ethereum was a milestone in the platform’s journey toward maturity and greater acceptance in the financial world.

Yes, Ethereum 2.0 holds significant potential for transforming DeFi and the broader ecosystem, but we can’t just have a foot halfway through the door. To reach its full potential, key developments still have to be reached.in September 2022, Ethereum now allows validators to stake ETH, with large stakes increasing validation chances and rewards.

For example, liquid staking protocols like Lido or Rocket could offer heavy service staking, while existing stakers can opt to run light service operators. Rainbow staking will eventually result in a more efficient and competitive network while granting more liquid staking provider diversity. However, executing it won’t be easy and could add confusion to the overall staking structure.

Ultimately, danksharding helps implement data availability, allowing validators to verify blob data quickly and efficiently, while simultaneously identifying missing data.

 

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