Ledger Gives the Nano X Support for Ethereum 2.0 Deposits

CryptoMode Ethereum Price Web3Torrent Eth2 Ethereum 2.0 Norton ERC-1155 Web3 Domains

Ledger has introduced a crucial update to its underpinning software. Anticipating the launch of Ethereum 2.0, the native Ethereum app has been upgraded to support this launch. However, it remains to be seen if and when this network upgrade will effectively come into play. 

A Smart Ledger app Update

Based on the blog post issued by the French company, a new version of Ledger’s native Ethereum application is available. owners of the Ledger Nano X can upgrade the software on the device at their earliest convenience. For those who own the Ledger Nano S, an upgrade will come later on. There is a tentative date of “somewhere during 2021”, without further specifics. 

As part of the new Ledger Nano X firmware – version 1.2.4-5 – seed derivation algorithm EIP2333 is now officially supported. It is a crucial component in supporting the switch to Ethereum 2.0 Whereas many people hope to see this switch to proof-of-stake occur by December 1, there is virtually no change that deadline is even feasible right now.  

With this new update, Ledger Nano X users can securely sign a deposit contract transaction on their device. This includes depositing funds to the Beacon chain smart contract. Introducing this feature may help improve the overall deposit rate for this contract. An injection of liquidity is direly needed, based on the current figures. 

It is worth pointing out there are no third-party services to create deposit contract transactions. Ledger anticipates this will change in the future. If and when that happens, the hardware wallets will be capable of executing such operations immediately. A secondary application is in development to let Ethereum stakers sign blocks on the Beacon chain as well. 

Ethereum 2.0 Isn’t Looking Good

Contrary to what the developers had hoped, there is far less interest in pre-staking ETH into the Ethereum 2.0 contract. So much so that the current rate of deposits is way too slow to meet the December 1 deadline. Failing to meet the requirements will push back to the launch of phase 0 of this network upgrade further. It is even possible the current approach tor itching the activation threshold will prove insufficient. 

Every user interested in running an Ethereum 2.0 node as a validator needs to deposit 32 ETH into the smart contract address. Once this funds is sent, it cannot be used for anything else. Limiting users’ wealth in terms of functionality is never a smart plan. This is especially true when most markets turn bullish, as is happening in recent weeks. 

None of the information on this website is investment or financial advice and does not necessarily reflect the views of CryptoMode or the author. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. Always conduct your research before making financial commitments, especially with third-party reviews, presales, and other opportunities.