Ethereum 2.0, also known as Eth2, is the most anticipated upgrade in blockchain technology. Ethereum investors can’t wait.
The Eth2 name remained, but the Ethereum Foundation changed the terminology. It is now referred to as the consensus layer that works on the original blockchain.
This upgrade will be implemented in phases and is designed to increase security and scalability of the Ethereum network.
The Ethereum upgrade will include several changes to the network’s infrastructure. It starts with the switch from proof-of work (PoW), to proof-ofstake (PoS), followed by sharding chains, and other updates down the line.
PoS is a significant move for Ethereum because it changes the incentives to validate the Ethereum Blockchain.
In the past, miners managed the nodes and required a lot of energy in order to mine the next block.
These two elements, miners and energy, are removed from the PoS consensus mechanism and replaced with validators and staking. This results in a greater than 99.9% decrease in power.
To participate in random validation, validators must deposit 32 ETH. The network will pay them for validating transactions.
The block reward for a validator who isn’t online or cannot perform its actions might be reduced. Malicious attempts to compromise the network by validators could lead to a worse outcome. Their 32 ETH deposit could be’slashed.
Overview of the advantages of PoS Ethereum
Proof-of-Work required GPUs (Graphic Processing Units), in order to participate the mining process. Demand was so great that regular market prices were affected by shortages. ETH issuance fell from 4.3% to 0.433% which can lead to deflationary effects. Since EIP-1559, there have been severe penalties for bad actors. Attakers can be removed from the staker list and economic penalties.
The Merge: Beacon Chain + Ethereum Mainnet
The first phase started with the upgrade to the ‘Beacon Chain, which was live on December 1, 2020.
As the basis for switching to PoS, the Beacon Chain also included native staking on Ethereum’s blockchain. The new’merge’ will merge the Beacon Chain and the Ethereum mainnet.
The final phase will be focused on blockchain sharding. All future operations will be performed on 64 shard chain shards to improve the scalability and scalability Ethereum’s mainnet.
Ethereum Merge (via Ethereum Foundation).
This sharding method makes it easier for layer-2 Blockchains to build on Ethereum. The rollup/bundled transaction cost will decrease as well as the memory specifications needed to run an Ethereum full-node.
There will be more Ethereum news after the merger
Vitalik Buterin, Ethereum co-founder, spoke at the Ethereum Community Conference in France on July 19-21 about the future of the merger.
Buterin stated that the switch to PoS will increase the scalability and the merge are just a few of the first upgrades.
“Ethereum can currently process approximately 15-20 transactions per second.” This Ethereum, including rollups and the sharding […] will be able to process 100,000 transactions per second.”
These 100,000 transactions per second are put in perspective by the fact that VISA, the payment operator, executes an average of 1,7000 transactions per second. Bitcoin is only about 4.6 transactions per second.
Buterin has also the names of the next phases (they were also on an earlier roadmap):’surge (includes sharding), Verge (Verkle tree), purge (purge old network history), &’splurge (‘All other fun stuff’).
Buterin also stated to the French community that Ethereum is only 40% complete. The merge should take place in September. After that, it will be at approximately 55%.
This is the complete roadmap for Ethereum, which includes the next phases following the merger:
Roadmap to Ethereum Consensus Layer (‘Eth2’)
Ethereum is in for exciting times
Since 2013, Vitalik and other Ethereum developers have been working together.
The now-legendary Ethereum ICO was launched in August 2014. It was the first time that ETH could be purchased publicly.
The team used the funds to continue developing the Ethereum blockchain technology and technology. Although it has flaws, Ethereum remains the largest blockchain-ecosystem with a huge network effect.
The merge is expected to take place in September. The upgrade will positively impact accessibility, security, and scalability.
This is what you can expect from Ethereum’s long-awaited upgrade CryptoSlate, “Merge”.
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