What is Ethereum 2.0?


2 min read

Ethereum is a open source blockchain that allows anyone to build real time application using smart contract and block chain.

Ethereum 2.0 the 2nd major upgrade of ethereum blockchain which aims to solve scalability and security issues

What is Ethereum 2.0 Actually?

Ethereum 2.0 is the 2nd major Upgrade of the current blockchain (v1)

Ethereum 2.0 is a long term development process that will improve security and scalability issues of the current blockchain

This upgrade will improve the speed, security, efficiency and the scalability problems of Ethereum network.

What's different about it?

The major difference between Ethereum 1.0 and Ethereum 2.0 is that previous version used Proof of work (POW) mechanism consensus while the newer 2.0 version will use Proof of stake (POS)

Difference between POS Vs POW

Proof of stake and Proof of work both are different from each other yet used for the same motive

POS and POW both are used to secure the block chain network and increase decentralization

POS is a power consuming consensus process where miner's (digital worker) use expensive hardware to solve complex math and receive reward in crypto currency

POS is a easy to do process where a validator (computer node) verifies all the transaction and keep a record of data generated on the block chain.

For their contribution they receive some part of the fees generated to make transaction on the blockchain

Users stake their crypto in a validator node and help the validator to get elected to complete the process and help secure the network

In exchange the validator shares a amount of the fee received in rewards with the stakers

This way the network stays free from one hand control and remains decentralized

Here Ethereum 2.0 upgrade will implement the Proof of stake consensus that will help to boost up the process even more and increase speed of transaction

POW is a slow and power consuming process while POS is fast and power efficient

Upgrading to Proof of stake consensus will help Ethereum to work and process transaction faster

How fast will it scale?

Ethereum 2.0 promises to scale over 100,000 transaction every second were Ethereum 1.0 used to scale only 30 transaction every second

This speed will be achieved by implementing sharding chains

Sharding chains will split the process to multiple chains where transaction will be handled in a parallel mode instead of a consecutive one

This will improve and boost the speed of each transaction and can be scaled easily.

How will it be secured?

In the older version Ethereum 1.0 the security part was controlled by a handful of miners that acted as a centralized system

Keeping the security issue in mind Ethereum 2.0 upgrade implements Proof of stake (POS) consensus

In this upgrade security part will be divided into multiple validators so that none can control or attack the network brining more decentralized nature into play

Ethereum 2.0 requires 16,384 validators in order to successfully implement the upgrade which makes the network more safer and secure

On December 1, 2020 12.00 (UTC) Ethereum reached the max validator limit and currently working to implement the full upgrade

The Future of Ethereum 2.0

Ethereum 2.0 is a long waited and also a long period of development process.

Each upgrade will bring more speed and security to the network that's why it might take over 2 to 10 years to implement properly

While the work undergoes Ethereum 2.0 network will use alternative methods like layer 2 solutions to provide similar experience

Scalability of Ethereum means it can serve more people and that means more usage and demand

This will drive up the price of ether the native currency of Ethereum blockchain massively resulting a bright future ahead both for the crypto and blockchain.