Ethereum 2.0 is basically a set of upgrades to the ethereum ecosystem to make it more scalable, secure, and sustainable.
All of the upgrades that have been discussed here were always in the roadmap of ethereum, even before the network launched.
Let’s see the top 3 visions of Ethereum 2.0-
Ethereum currently is capable of processing approximately 15 transactions per second. With the Eth 2.0 upgrade, the network will be able to handle thousands of transactions. Also, it’s expected that the network should be able to handle high amounts of transactions without increasing the size of nodes.
Security is one of the most important aspects of distributed networks. Eth 2.0 will ensure that no harm is being done to the network, and if someone tries to gain control of the network or tries to validate wrong transactions will be punished by a process known as slashing where they might lose their staked amount.
Currently, validating transactions requires a lot of computing power, the protocol that is being used for doing so is known as proof of work where all the miners solve a puzzle for validating the transaction, and the miner who manages to solve the problem first, gets the block reward, but in this process, the other miners who couldn’t manage to win this validating race used a certain amount of computing power which was of no use hence proof of work protocol takes up a large number of computing resources.
With Eth 2.0 the proof of work concept will be replaced by proof of stake which will be more environment friendly. Proof of stake involves the validators who want to secure the network to deposit certain amounts of ether as stake only after they are eligible for validating transactions. To restrain validators from validating fraudulent transactions and gaining access over the network which would require almost 51% of Eth to be staked, a mechanism which is known as slashing is introduced where the validator will lose his/her staked eth if they try to harm the network.
Some important terms related to Eth 2.0
A minimum of 32 ETH is required for staking in order to be a validator, if a user doesn’t have 32 ETH they can try some staking pools which allow users to stake less than 32 ETH. The proof of stake protocol helps the ethereum ecosystem to achieve all its vision like sustainability, security, and scalability.
Sharding will play an important role in solving the scalability issue by dividing the database and allowing the validator to only run the data that is required for validating transactions instead of having the data of the entire network. This will encourage more nodes to run even in systems with low specifications which will make the network more decentralized and secure.
Progress in Eth 2.0 rollout-
The first step in the upgrade to Eth 2.0 involved a phase known as Beacon Chain. The beacon chain went live on Dec 1, 2020, this introduced the concept of staking. However, this can’t be really used until the other processes are deployed.
The next step involves the merging of the beacon chain to the mainnet which will make proof of stake the only way to introduce new tokens to the network. This feature is expected to be rolled out by 2022.
The final step involves the introduction of shard chains which will make the network more scalable and more secure.
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Ethereum 2.0 will surely be a game-changer to the crypto space as it will not only be more environment friendly but will also ensure high scalability and security. High scalability will give rise to more use cases to the ethereum network and will help people to transact with minimum fees and in a faster way.