Ethereum 2.0 which is also known as ETH 2.0 or Serenity and it is the upgrade to the Ethereum network. This upgrade of Ethereum, has the capacity of faster transaction, lower fees and allow the average user to use it. It makes changes to the network infrastructure- proof of work consensus mechanism to proof of stake. It has amazing features such as secure, sustainable, fast and more scalable. Ethereum holders can stake their holdings on exchanges like Binance, Coinbase and Kraken. In this blog, you will read the complete information about Ethereum 2.0.
What is Ethereum 2.0?
The main motive of Ethereum 2.0, is to improve the speed, efficiency, and scalability of the Ethereum network. Through this upgrade, the user can do transactions easily and faster.
Ethereum 2.0 is launching in three phases i.e. Phase 0, 1 and 2. First phase is known as the Beacon Chain. In Beacon Chain, it stores and manages the registry of validators and deploys POS consensus mechanism. Second phase is known as The Merge, in this it merges the Beacon Chain with the Ethereum mainnet. In this phase, POW came to an end on the network. Third phase is of Shard Chains, who plays a key role in scaling the Ethereum network and it spreads the operations across 64 new chains as a result less data is stored on a machine.
The difference between Ethereum 2.0 and Ethereum is Ethereum uses Proof of Work (POW) consensus mechanism and Ethereum 2.0 uses Proof of Stake(POS) mechanism. With Ethereum 2.0, you can do 100,000 transaction per second and it is devised with security.
What is the Difference Between Proof of Work and Proof of Stake?
In Proof of Work system, miners use the machine’s processing power in order to solve the complex mathematical puzzles and check new transactions. After solving the puzzle, miners are rewarded with the network’s cryptocurrency. But this process, consumes lots of time and energy.
In Proof of stake, users stake a network’s cryptocurrency and they become the validators. After this, validators verify the transactions and they make sure there are no fraudulent transactions. Validators are chosen to win a block, on the basis of how much crypto they have staked and for how long they have staked. According to this, validators are rewarded for the successful block proposition and it is called forging. PoS is energy-efficient and you don’t require computing power to secure the blockchain.
How Much Ethereum 2.0 Secure?
Ethereum 2.0 has made for the security of the users. It requires minimum 16,384 validators which will make it decentralized and secure. Ethereum Foundation has set up a security team for Ethereum 2.0, so that they research for the cybersecurity issues in the cryptocurrency. And the research includes fuzzing, pager duty, cryptoeconomic modeling, bounty hunting, formal verification and applied cryptanalysis.
What will Happen After the Launch of Ethereum 2.0?
Ethereum 2.0 brings lot of good changes to the blockchains. With the upgrade of Ethereum 2.0, traders and investors expect positive results like:
- Ethereum will become more energy-efficient.
- With Sharding process, ordinary people can operate Ethereum on their personal computing devices. This will increase more validators to the network and also make it decentralize. This in turn increase the demand for the Ether coin.
- After the upgrade, it will become difficult to compromise the network. As all the validators have submitted their addresses, so it will be easy to identify the attacker.
- There will be more transactions per second, which in turn decrease in transaction costs.
What will be the Release Date of Ethereum 2.0?
As the first and second phases of the Ethereum 2.0 are already launched. And it took place in 2020 and 2021. It is expected the last phase will be released later in 2022. This will be the final launch of the new Ethereum 2.0.
How It Affects Ethereum Price?
As Ethereum 2.0 provides more scalability, this means more usage so it will be more in demand. This will increase the price of Ethereum to new heights. But the transaction fees will be reduced. To learn about Ethereum 2.0, please subscribe to our website.