Join date: Sep 22, 2022


About ETHEREUM 2.0

The Ethereum blockchain network and cryptocurrency was invented by Vitalik Buterin in 2013, actually launched in 2015. It works on the Proof-of-Work (PoW) consensus algorithm - computer nodes agree on the reliability of information entering the network and eliminate the likelihood of economic attacks. PoW is not perfect: long transactions, huge network fees, all this has led developers to increasingly choose other blockchains for decentralized applications.

This is where Ethereum 2.0 enters the scene, the main goal of which is the transition of the network to Proof-of-Stake (PoS). The update has not yet been released, it is under active development. More detailed about eth2 here eth2 lookup

Launch and what awaits the network

Although the process has begun almost since the launch of the initial network, it is moving slowly. Buterin himself admitted that the transition turned out to be more difficult than it initially seemed, and requires more time and effort.

At the end of 2020, the Beacon Chain network was launched, where the concept of PoS is demonstrated. However, it cannot be fully used until other components come into play.

An important step will be the unification of Beacon Chain and the existing Ethereum blockchain network. When this happens, the extraction of Ethereum tokens through mining will completely stop, and staking will become the only way to create new coins. This could happen by the end of 2022 (already happened in September).

According to analysts, the Ethereum 2.0 update will allow the decentralized smart contract system to make significant progress in terms of speed, security and reliability, reduce the carbon footprint, and lower the entry barrier for investors. This is a necessary network upgrade in light of how fast the adoption of cryptocurrencies, smart contracts, NFTs is going. Improved scalability will definitely bring more users to the Ethereum ecosystem.