Eth 2.0 Proof-of-Stake was a key step in 2020

Eth 2.0 Proof-of-Stake was a key step in 2020 - Eth 2.0 1024x538In just one year, it staking it has gone from academic pursuit to a dominant force in cryptocurrencies. The greatest story of staking of 2020 is, of course, the launch of Ethereum 2.0. But beyond that, 2020 has seen a huge flowering of proof-of-stake (PoS) networks.

Four of the top nine cryptocurrencies by market cap are on track for proof-of-stake, and more are ready to follow. Proof-of-stake now covers around 15% of the total cryptocurrency market capitalization. Much of the acceleration in cryptocurrency development we've seen this year is attributable to proof-of-stake blockchains, including Ethereum, Polkadot, Cardano, NEAR, Solana, and others.

Theory in practice

A constant criticism of the proof-of-stake mechanism is that it is only theoretical. Many thought that a PoS blockchain would not pass the test in the real world. Previous successful launches of PoS blockchains such as Tezos and Cosmos have done little to silence critics.

The frequent delays and apparent setbacks of Ethereum 2.0 (here the quotation in real time) no doubt fueled this skepticism. But after launching a month ago, PoS took the spotlight on the scene.

The decentralized economy will continue to migrate towards proof-of-stake. Ethereum is second only to Bitcoin in terms of total market capitalization and boasts the largest developer community of any blockchain. Ethereum 2.0 is now set to become the staking more important, even if you cannot predict exactly when this will happen.

The entire crypto industry will continue to migrate towards proof-of-stake

While Ethereum 2.0 is a great success for proof-of-stake, focusing only on the successful Ethereum upgrade means missing out on a much larger picture. Many PoS networks are experiencing success and having good adoption this year.

Polkadot, currently the largest PoS chain, now has over $ 3 billion in stakes. Chainlink, the fifth largest crypto asset by market capitalization, has announced that it plans to move to PoS.

And others will follow. By the end of 2021, most of the major chains will have shifted to varying degrees of systems staking. Most likely, bitcoin will continue to be the largest crypto asset in the world.

It was the first cryptocurrency, it is the best known and has a clear and easily understood use case. Bitcoin is an excellent foundation as a store of value, but those looking to build applications and functions for a decentralized economy will continue to migrate to proof-of-stake.

PoS has always been the destination of Ethereum and many other projects in the crypto sector. Difficulties along the way were inevitable and, certainly, the progress of PoS networks has not been without setbacks. But in 2020, the theory became a reality.