Ethereum (ETH) Rallies as the Kintsugi Testnet Goes Live in Preparation of ETH 2.0

For over a year, the Ethereum community has anticipated the launch of ETH 2.0, which many expect to bring great change to the network. Finally, the long-awaited ETH 2.0 has been brought a step closer to fruition with the launch of Kintsugi, a public testnet.

Ethereum Launches the Kintsugi Testnet

On Monday, December 20th, Ethereum announced the launch of the Kintsugi testnet in preparation for the launch of ETH 2.0. Kintsugi is a Japanese word that refers to the art of repairing broken pottery with gold lacquer. The same process Ethereum is hoping to undertake.

According to Ethereum, the testnet will help developers merge the network’s mainnet with the Beacon chain. In addition, Ethereum has announced that the merged network will be a more efficient and scalable blockchain. 

According to the announcement, the Kintsugi Testnet is merely a beta phase of the experiment. Developers will test Kintsugi throughout the period, providing feedback before the ETH 2.0 Testnet is officially launched in Q2 of 2022.

By transitioning to a proof-of-stake consensus mechanism, ETH 2.0 will scale up the available space on the network. With more space, the Ethereum network is predicted to be faster and more efficient, effectively ending the high transaction fees that have riddled the network for years.

ETH Rallies After the News

Following the announcement, Ether has embarked on quite a rally, gaining by more than 7% over the last 24 hours, reclaiming $4,000 in value in the process. At the time of writing, ETH is now trading at $4,016, with a $477.2 billion market cap.

The 24 hours price chart for Ethereum (ETH). Source: Tradingview

On the Flipside

  • Initially launched on December 1st, 2020, the transition to proof-of-stake, which has taken a long time, has led many developers to leave the network.

Why You Should Care

With Ethereum 2.0 billed to solve many of the problems that have plagued the network, the long-awaited upgrade could be the final piece of the puzzle to ensure Ethereum’s dominance.

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    Author

    Milko is a DailyCoin reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs).