What Does Ethereum 2.0 Promise?
Ethereum 2.0 Serenity
Today I am here with another topic written about for a long time: Ethereum 2.0 Serenity. As you know, the Ethereum blockchain is the second largest currency in the cryptocurrency market after Bitcoin and has long been expected to receive an update. Ethereum’s co-founder Vitalik Buterin announced that this expected update will be completed this September. With the upcoming update, the goal is to transform Ethereum from a Proof-of-Work (PoW) consensus model into a Proof-of-Stake (PoS) consensus model. So what changes will the Ethereum network undergo with this update? What does Ethereum 2.0 promise?
What Will Ethereum 2.0 Bring?
Ethereum 2.0, also known as Serenity, is an improved version of the existing Ethereum blockchain network. Why is Ethereum 2.0 a necessity? The answer is to improve the speed, efficiency, and scalability of the Ethereum network. This way, the network can handle more transactions at the same time. It also aims to improve the security and sustainability of the blockchain network. However, it takes a few processes to achieve this goal. Let's examine this whole process, the roadmap of Ethereum 2.0, which consists of three stages:
1) Beacon Chain
Launched on the 1st of December 2020, the beacon chain is defined as the first phase of Ethereum 2.0.
It takes 32 ETH for each validator to be activated in this chain. At this stage, the PoW system continues cooperating with the new PoS chain to ensure no data is lost.
2) The Merge
The main network of Ethereum 1.0 is soon entering the beacon chain PoS phase. This way, the Ethereum development team is moving from the PoW consensus model to the PoS consensus model. This transition won’t affect the Ethereum network in any way, and all transactions and implementations on the network will continue to work as before. However, after this phase, instead of calling them Ethereum 1.0 and Ethereum 2.0, there’ll be two separate layers: the execution layer and the consensus layer.
At this point, the execution layer, the first one, will be responsible for transaction packaging, execution, and state management. This layer is represented by Ethereum clients like Geth, OpenEthereum, Hyperledger Besu, and Nethermind. The consensus layer is simply responsible for validating blocks, also known as the beacon chain. Notable clients of the consensus layer include Teku, Lighthouse, Nimbus, and Prysm.
3) Shard Chain
The next phase of development, Shard Chain, is the final phase that’ll be implemented to improve Ethereum 2.0 scalability and is expected to launch in the last quarter of 2022 or in 2023. I can say that the shard chain will provide better transaction and storage performances on the Ethereum network.
What Does Ethereum 2.0 Offer Different from Ethereum 1.0?
After the transition to Ethereum 2.0, we’ll witness two main changes. These changes are about PoS and shard chain. So, why not take a closer look at what these two main differences will bring to the Ethereum blockchain network?
1) Proof-of-Stake (PoS)
Ethereum 1.0 works in the PoW consensus model in the current blockchain network. In PoW, adding new blocks to the blockchain depends on miners and electricity. On the other side, Ethereum 2.0 is going to use PoS consensus to enhance the energy efficiency, security, and scalability of the Ethereum blockchain. Additionally, PoS doesn’t rely on physical and electricity miners. Instead, validators and ETH deposits are at the forefront. It means that the costs and transaction fees will be lowered.
2) Shard Chain
Shard chain or sharding is known as a mechanism that can significantly increase the throughput of the Ethereum blockchain network. Sharding, a method developers use to improve blockchain transactions and storage performance, will bring similar features to the Ethereum blockchain network with Ethereum 2.0.
As a result; the efficiency, transaction volume, and security of the Ethereum network are expected to increase through the update. At the same time, transaction fees are predicted to decrease as the PoW consensus model cedes its place to the PoS model.
Without a doubt, Ethereum 2.0, which excites me, will create many differences in the Web3 world. I can’t wait for this transition to be done. If you’re interested in this world, you can follow all updates by subscribing to my newsletter! Looking forward to your comments.
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