What is ETH 2.0? Crypto Current
What is ETH 2.0? Ethereum is the home of DeFi and NFTs. For the public network’s significant role in the growing crypto scene, thousands of developers are actively improving its source code for better scalability and efficiency.
From the onset, Ethereum developers expected smart contracts to increase the network’s load, and they, therefore, purposed to improve the core’s scalability. There have been enhancements since then, from Homestead to Metropolis, gradually making Ethereum more robust and efficient. These changes were preparation for the eventual shift to a staking network, away from a proof-of-work to a staking network in Ethereum 2.0.
Ethereum 2.0, or ETH 2, is an upgrade on Ethereum whose objective is to improve the smart contracting platform’s security and scalability. Already, Ethereum is a secure network with high levels of decentralization. However, a big challenge affecting performance has been scalability. Scalability in crypto is the ability of a blockchain to process as many transactions as possible without affecting performance. The goal of Ethereum in the next era, Ethereum 2.0, is to be highly scalable, decentralized, and secure.Eth2 is an Ethereum upgrade that will enhance the network's security and scalability. Prominently, Ethereum 2.0 will support staking and use Sharding for on-chain scaling. Learn more here: Click To Tweet
A prominent feature in ETH2 is the incorporation of a proof-of-stake consensus algorithm allowing Ethereum transactions to be confirmed by a network of validators. Validators are users or institutions who run full nodes, staking at least 32 ETH.
Besides staking, ETH2 developers plan to introduce Sharding for on-chain scaling. Currently, there are layer-2 scaling options using rollups and other innovations like state channels. They will be used together with Sharding to enhance user experience and reduce on-chain Gas fees.
The Beacon Chain—the Ethereum staking network—runs in parallel with the primary proof-of-work blockchain. The two would be merged in 2023 as Ethereum transitions to a staking network, deactivating the energy-inefficient proof-of-work blockchain.
Eth2 will be revolutionary for Ethereum. Tune in and subscribe to our podcast if you want to keep up with Eth2 and Ethereum updates.
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