TheEthereum (CCC:ETH-USD) network is in for a busy week. It continues a very eventful autumn with yet another upgrade set for Friday. While developers are readying themselves to roll out the Arrow Glacier upgrade, though, investors are having a bout of confusion. Crypto exchangeCoinbase (NASDAQ:COIN) is listing an ETH2 coin on its platform, and it has a lot of traders asking questions. What exactly are the differences between ETH2 vs. ETH?
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First, let’s address the upcoming Ethereum upgrade. Arrow Glacier, the newest Ethereum update, will add some time for developers before the protocol’s “difficulty bomb” detonates. Essentially, the developers made this bomb, which greatly slows down ETH mining and network speeds when detonated, as a way to force them to transition the network from proof-of-work to proof-of-stake.
This transition is set to happen with the Merge upgrade, coming in 2022, but the difficulty bomb is set to detonate this month. As such, the developers are implementing Arrow Glacier to delay the detonation of the difficulty bomb. This will ensure the network doesn’t suffer ahead of the Merge.
The Arrow Glacier upgrade is set to take place on Friday, Dec. 10. In the midst of the chatter about this upgrade, there’s another event which is causing a stir around the network. It appears Coinbase is listing a coin called ETH2 on its platform. Investors have lots of questions as to what this coin is.
ETH2 vs. ETH: Coinbase Listing Causes Much Confusion Around the Two Coins
Coinbase users have taken notice of the ETH2 coin on the platform, listed just above ETH. What is ETH2, and what makes it different from ETH? Is it really a second version of ETH, rolling out ahead of the upgrade? Well, not quite; as it turns out, the ETH2 listing is just something popping up in anticipation of the Ethereum network overhaul. Nonetheless, let’s look at the differences between ETH2 and ETH.
Coinbase might have jumped the gun a little bit with its listing of ETH2. ETH2 is meant to be the second iteration of ETH, and it is meant to launch with the Merge upgrade on the resulting Ethereum 2.0 network. In essence, it is the exact same coin as ETH; Coinbase data shows that they have the same market capitalization, circulating supply and all-time high. Yet, ETH2 has no trading data for the Coinbase platform and no popularity measure like ETH does, evidencing the fact that it is not actually a tradeable coin.
And asCoinTelegraph points out, ETH2 isn’t actually a new coin at all; the coin has been around as long as the Beacon Chain, which launched in late 2020 in anticipation of the Merge. These coins will actually replace ETH in its current form. Nothing will necessarily differ between ETH2 and ETH; the change will simply reflect the fact that Ethereum 2.0 has taken effect. It’s clear that the current ETH2 listing is simply an error coming about as Arrow Glacier is readied.
On the date of publication, Brenden Rearickdid not have (either directly or indirectly) any positions in the securities mentioned in this article.The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.
