In this digital world, many complex technologies are evolving around the globe and making tedious tasks simple. On that line, blockchain technology is one of those convoluted technologies and a trendy one in this era. This perplexing technology disrupted many industries like banking, finance, healthcare, and much more. Besides these, this technology is also used to create cryptocurrencies with various functionalities. When it comes to digital currency, Ethereum is the second-largest crypto according to market cap. Ethereum acts as crypto and the decentralized software platform which helps developers to create ethereum tokens, smart contracts, and decentralized applications.
An Ethereum network is the largest and most widely used blockchain network in the blockchain space. It is also an open-source project so it comes under the public blockchain. It was first released in 2015 and its ultimate goal of becoming a decentralized global computer that could replace centralized applications. However, the Ethereum community still has more responsibilities and work to achieve their goal. Currently, Ethereum 2.0 is the hot talk of the town and it is one of the most searched terms on the internet. Ethereum 2.0 is the major update for all ethereum users across the world.
If you aren’t aware of ethereum 2.0, then this article will help with everything you need to know about Ethereum 2.0
Table of contents
- What is Ethereum 2.0?
- Why Ethereum 2.0 is more popular in the industry?
- Ethereum 2.0 phases
- How Ethereum 2.0 is more secure?
- Features of Ethereum 2.0
- Benefits of Ethereum 2.0
- Wrapping up
Let us begin with…
What is Ethereum 2.0?
Ethereum 2.0 is an update to the existing Ethereum blockchain network that came up with cutting-edge levels of speed. It not only increases the speed of transactions but also improves the scalability and programmability of the blockchain without compromising on security. Ethereum 2.0 is shortly described as Eth 2.0. Experts in the community say that ethereum 2.0 has greater adaptability that can improve the performance of the ethereum-based tokens in terms of exchanges. This extraordinary ethereum network update will surge the probability of this exchange, eases blockage, and moderates the Ethereum arrangement.
Ethereum 2.0 will include sharding to arrange data transfer capacity and decrease gas costs. Also, reduces the cost to send Ethereum, ethereum-based tokens, and communicate with agreements. There will be essential financial changes where Eth 2.0 will support to mark hubs and acquire Ethereum as revenue. Ethereum 2.0 is then joined by the exertion of several developers who have worked for quite a long time.
Ethereum developers are eagerly waiting to bring massive evolution progress in the blockchain space. Ethereum 2.0 is completely built by 9 different well-experienced developer teams. They are responsible for making different clients that connect to the Ethereum network. The Ethereum community says that ETH 2 development teams are the most talented protocol designers in the blockchain industry.
Why Ethereum 2.0 is more Popular in the Industry?
The main reason for the popularity of Ethereum 2.0 is scalability. As we know, ethereum is the most popular crypto and has the largest trade volume. Currently, many traders are trading eth because of the massive upsurge in price. Also, they are expecting after the release of Ethereum 2.0, the price of ethereum may double in the market. After the release of ethereum 2.0, the transaction speed of ethereum might increase from 15TPS to 1000TPS (Transaction Per Second).
The primary aim of Ethereum 2.0 is to introduce a PoS (Proof of Stake) consensus mechanism and sharding. Sharding will help to increase the transaction per second. Instead of having one blockchain, Ethereum 2.0 will have many shards that run parallel and processing transactions.
By updating Ethereum from Proof of Work to Proof of Stake, then it will move away from the high cost of the PoW mechanism. It is due to the cost of hardware and electricity. Proof of Stake mechanism helps Ethereum to scale horizontally. Because the requirements for running a staking node is significantly reduced. That’s why many people are waiting for ethereum 2.0 and it is prominent in the industry.
Now, let us see…
Ethereum 2.0 Phases that you need to know
Phases play a crucial role in the update of the ethereum network. In the ethereum, there are about six different phases. You can check the below image for the ethereum phases.
Ethereum 2.0 also has different phases which are known as the serenity roadmap. Here is the list of distinct phases in the ethereum 2.0.
Phase 0 – Beacon Chain
This phase 0 tools place on December 1 2020 after the predetermined number of more than 16,000 validators. Initially, ethereum 2.0 starts with phase 0. This phase is considered the heart of the ethereum 2.0. Phase 0 will start with the official dispatch of Beacon Chain. The target of Phase 0 is to provide validations to a shard square. With the bump of Phase 0, comes another ethereum token named ETH2. users of Ethereum can be able to change over to ETH2 at a 1:1 proportion through a recruitment contract.
Phase 1- Shard Chain
Experts in the blockchain space mentioned that phase 1 of ethereum 2.0 might take place in 2021. Phase 1 will allow the Ethereum blockchain to scale immensely through shard chains. The implementation of the shard chain is to eliminate the scalability issue in the ethereum. The Ethereum system will be part of 64 shard chains that work simultaneously. which means they will be part of all cycle exchanges and calculations. On other hand, phase 1 will allow the users to speak with one another utilizing crosslinking.
Phase 2 – Execution Engine network
After the development process of ethereum 2.0 phase 0 and phase 1, the execution phase will be started. With an enthusiastic experience, the newer network way boosts up and improves the performance of Ethereum 2.0. So, there is a combination of existing Ethereum with the emerging Ethereum 2.0 to boost the entire performance of the ethereum token. Thus, many people are showing their interest to create ethereum tokens by approaching the best ERC20 token development service.
How Ethereum 2.0 is More Secure?
Ethereum 2.0 has shard chains in its development phase. So it can conduct more than 1000 transactions per second. Whereas Ethereum 1.0 can support only 25 – 30 transactions per second(TPS). Also, it leads to a lot of delays and network congestion which will not be in Ethereum 2.0. The main motive behind an update to the existing Ethereum is to facilitate more secure and safe transactions. In this current time, many proofs of stake(PoS) networks have a small set of validators. But Ethereum 2.0 requires a huge set of validators approximately 16,384 that makes it more decentralized, secure, and less prone to management.
Now, let us see…
Features of Ethereum 2.0
There are two essential features in the update of the existing ethereum blockchain network. Such as
- Sharding
The existing Ethereum blockchain will be broken into 18 Shards that work simultaneously. This feature will help to improve the productivity of ethereum tokens.
- Marking
Ethereum will move to the PoS consensus algorithm. This feature helps to improve vitality productive strategy for keeping up the system.
Advantages of Ethereum 2.0
- The major advantage of Ethereum 2.0 is it improves scalability and security.
- It increased the speed of ethereum-based token transactions
- Ethereum 2.0 initialized the network for decentralization.
- Ethereum 2.0 has the decentralization process that will boost and improve the visibility in the crypto networks.
- After the release of ethereum 2.0, the price of ethereum will increase tremendously.
- It helps to create an ethereum token in a simple and fastest way with the implementation of advanced features.
- This updated ethereum is expected to have advanced high-level security features. The ethereum network 2.0 has introduced some security mechanisms. So the transactions will be done with the highest speed and security.
- The introduction of the Testnet technology will help ethereum 2.0 to outperform any type of security breach. Also, helps to protect the token transactions.
- Another greatest advantage of ethereum 2.0 is the Proof of stake mechanism. This mechanism helps to promote energy consumption to a commitment in a financial stake.
- Shard chain and Beacon chains are parallel to the blockchain networks. These chains are corresponding security and management framework. Also, they are created by the experienced Ethereum developers team to provide an effective decentralization mechanism.
Wrapping up
The co-founder of the Ethereum blockchain network, Vitalik Buterin mentioned that Existing decentralized applications built on ethereum will keep running with no change. Also, all account balances, contract code, and contract storage will carry over and do not have any impact. In other words, we can say that Ethereum will continue as it is now. Also, it will undergo improvements in Ethereum 2.0. The introduction of Ethereum 2.0 will offer a wide range of opportunities for the Ethereum token development service providers, Ethereum Developers, and Ethereum community.