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Ethereum 2.0 is the next version of Ethereum blockchain technology to enrich the current blockchain with a new function. Ethereum 2.0 comes with many solutions related to the current cryptoverse.
Ethereum was developed in order to provide a platform that can facilitate immutable, programmatic contracts and applications via its own currency. However, it had certain limitations such as slow transaction processing and high transaction costs.
To provide more pleasing decentralized platforms, as well as handle multiplications of transactions, Ethereum developers have been updating the blockchain with new features and solutions. Ethereum 2.0 is a crucial development in the crypto space for users.
What makes Ethereum 2.0 different from Ethereum
Ethereum 2.0 is expected to overcome current limitations, which is a big burden for users and developers. The update will increase the network’s speed, efficiency and scalability with better security.
Below are the three crucial features that are going to add to the update.
Ethereum 2.0 will substitute the proof-of-work mechanism with proof-of-stake for validators. This feature resolves energy concerns as the PoW mechanism requires a large amount of energy to compute complex equations for Ethereum mining.
Proof-of-stake is an alternate and energy-efficient option for the blockchain developer, where validators confirmed the authenticity of transactions instead of miners.
Ethereum 2.0 developers believe that PoS will use only 0.05% of total Ethereum energy. In this way, they plan to make Ethereum a more carbon-efficient blockchain.
Sharding provides scalability to the blockchain network by dividing it into different areas or shards to execute multiple transactions simultaneously. This will allow Ethereum to handle the congestion of transactions.
Currently, the Bitcoin blockchain executes seven transactions per second, while Ethereum is capable of handling 15 to 45 transactions on its network. These low numbers can suffocate the growth of Ethereum and Bitcoin.
With sharding, the Ethereum technology will be able to execute transactions in less time. It is expected to surpass the transaction speed of Solana, which is considered as an ETH killer due to its high speed.
Ethereum virtual machine (EVM)the crucial development which has shifted the focus of DeFi users from Bitcoin to Ethereum. Basically, EVM is the network formed across all nodes with smart contract capability. One can build games, execute financial transactions or provide online service.
EVM codes are a complex matrix of codes, and due to this, it is difficult for many skilled programmers to modify the code. As a solution, developers planned to add a new web assembly language, eWASM.
eWASM will allow Ethereum app codes to run into currency web browsers. Even programmers will be able to choose from different programming languages like Rust, C and C++ to write code.
Development phases of Ethereum 2.0
Currently, Etheruem is executing transactions day by day and projects are running on Ethereum. So, instead of taking Ethereum down, developers have decided to update the blockchain in three phases to integrate with the Ethereum mainnet.
- This phase contains the launch of the beacon chain (aids Ethereum 2.0 to expand the network through connecting multiple nodes).
- This phase was rolled out in December 2020.
- Phase one will merge beacon chain with the Ethereum mainnet, and this will allow staking on the network.
- This phase was expected to launch in 2021, but due to technical delays, now it is planned for 2022.
- The last phase of Ethereum 2.0 will add a shard chain. The addition of this chain will provide multiple transactions capability.
- Shard chain is estimated to integrate with Ethereum 2.0 by 2023.
As Ethereum 2.0 is coming with fascinating features and capabilities, it will certainly provide scalability and flexibility to the network. The PoS mechanism resolves energy concerns, and this can draw attention from crypto entrepreneurs. It will be no surprise if the ETH market value shows a hike after the complete launch of Ethereum 2.0. Also, reduced transaction fees and costs, as well as increased security, will build trust in crypto innovators and developers. Ethereum 2.0 will definitely is set to bring revolutionary changes in blockchain technology.
Rajpasinh Parmar is a technical content writer at The Crypto Times and is enthusiastic about blockchain and the metaverse.
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