Written by Rob the Water God / 4/5/2021

Everyone is now talking about ethereum 2.0 aka “Serenity”. However not many people actually know about it. Basically, ethereum 2.0 is an upgrade to ethereum but we will get into that later on. Let me explain ethereum 2.0

What is Ethereum 2.0?

Ethereum 2.0 is an upgrade to the Ethereum blockchain. Therefore, the upgrade aims to enhance the speed, efficiency, and scalability of the Ethereum network. So it can process more transactions and ease bottlenecks. This will take Ethereum to new heights as it will be able to drastically increase transactions, alleviating congestion, and high gas costs on the Ethereum network. Upon reaching the final phase of the upgrade, dubbed “phase 2”, Ethereum will meet its goals of becoming a transparent and open network for decentralized applications and finance. Although, ethereum 2.0 will involve sharding to drastically increase network bandwidth and reduce gas costs, making it cheaper to send Ethereum tokens.

And interact with smart contracts. There will be fundamental economic changes too, Ethereum 2.0 will allow support to staking nodes and earn Ethereum as passive income. In many ways, Ethereum 2.0 is the combined effort of thousands of developers who worked for years. Over the past few years, opponents of Ethereum have often criticized the network’s high transaction costs and fragility during peak usage. Will Ethereum 2.0 be able to fix this problem?

What is the difference between ethereum and ethereum 2.0?

The major difference between Ethereum 2.0 and its counterpart is the consensus mechanism which they use. Ethereum uses proof of work (PoW) mechanism, while Ethereum 2.0 uses proof of stake (PoS) mechanism.

The proof of work mechanism is an energy-intensive process in which complex mathematical puzzles are decoded by miners with the help of computer hardware processing power. This is also used to verify new transactions. Whoever decodes the puzzle first, adds a new transaction which contains the previous transactional records making up the blockchain.

The validators must propose a depending on the time and amount of crypto they hold. When a majority of validators claim to have seen the block, it is added to the blockchain and they are rewarded for conducting the block proposition successfully. This is how “forging” or “minting”

takes place.

PoS is a more energy efficient mechanism as compared to PoW since it uses less computing power to secure a blockchain.

How will Ethereum 2.0 be more secure

The most important advantage of Ethereum 2.0 is its scalability. Ethereum 2.0 will have shard chains due to which it can conduct up to 10,000 transactions per second whereas Ethereum can support only 30 transactions per second. This also leads to a lot of delays and network congestion which will not be the case in Ethereum 2.0. The implementation of shard chains speeds up the network and can scale more easily as the transactions are handled in parallel chains instead of consecutive ones.

The main idea behind devising an upgrade to the existing Ethereum is to exercise more safety in the entire transaction. Many proof of stake networks have a very small set of validators. This accounts for decreased network security. Ethereum 2.0 requires a large set of validators, approximately 16,384, which makes it more decentralized, secure, and less prone to manipulation. Here are some of the latest additions to ethereum

The Beacon chain

The Beacon Chain will introduce proof-of-stake to Ethereum. This is a new way for you to help keep Ethereum secure. Think of it like a public good that will make Ethereum healthier and earn you more ETH in the process. In practice, it will involve you staking ETH in order to activate validator software. As a validator you’ll process transactions and create new blocks in the chain.

Staking and becoming a validator is easier than mining. And it’s hoped this will help make Ethereum more secure in the long run. The Best thing is that the beacon chain is already up and running!

Shard chains

When the first shard chains are shipped they will just provide extra data to the network. They won’t handle transactions or smart contracts. But they’ll still offer incredible improvements to transactions per second when combined with rollups. It’s release date is somewhere in 2021

The Docking

When ready, Ethereum mainnet will “dock” with the Beacon Chain, becoming its own shard which uses proof-of-stake instead of proof of work. Mainnet will bring the ability to run smart contracts into the proof-of-stake system, plus the full history and current state of Ethereum, to ensure that the transition is smooth for all ETH holders and users. Vitalik Buterin has said that The docking will be created in 2022

Conclusion

Ethereum 2.0 is expected to be a huge improvement in the ethereum platform. Investors are excited about what ethereum 2.0 would bring and how it would change the way we create! Follow Crypto empire tv it gives you up-to-date news on Finance and crypto. Stay updated with us on our social media sites.

All You Need To Know About Ethereum 2.0