Ethereum will take one step closer to becoming Ethereum 2.0 as the Ethereum Foundation announced the new protocol will kick off when 524,288 ETH are locked into ETH 2.0’s smart contracts this December. Phase 0 will be a major milestone for the Ethereum community with the launch of a new chain called Beacon Chain and the implementation of Proof-of-Stake mechanism. Significant delays are unlikely occur at this point, however, it will take several years to have a complete transition from ETH 1.0 to ETH 2.0, according to experts. The process is just beginning, and no one knows how long a full changeover will take.

Why it matters: Ethereum has been a smashing success and is clearly one of the best altcoins out there. One of the things that makes Ethereum so great is the fact that is has an active development team behind it, which makes adapting to new challenges much easier. While the shift to ETH 2.0 represents a big unknown, it doesn't appear to be blocking investors from bidding up the tokens. Like any development cycle, an idea that is well funded will continue to grow, which is what appears to be happening with ETH 2.0. It will be interesting to see when the token lock up happens, and how quickly the roll-out happens.