We all have an idea of how popular these days cryptocurrency is getting and with its new additions it is growing in interest for a lot of people as time passes. So recently the cryptocurrency investors have shown their interest and are impatiently waiting for the release of Ethereum 2.0. I am sure that the ones who are new to this term will find it very unusual and you must be googling what exactly does this term means but there is no need for that as before proceeding forward I will answer your question of what exactly is this Ethereum 2.0.
Ethereum 2.0 is a new type of cryptocurrency that will use an overall new consensus mechanism, scalability, and security. This upgraded blockchain will use a PoS (proof-of-stake) concept instead of the traditional PoW (proof-of-work). This change has taken place as the PoW system can be energy-intensive, as miners use computer processing to solve complex mathematical puzzles to verify transactions. When miners first solve a puzzle, they add a new transaction to the record on the blockchain. After which they were then rewarded with crypto coins. Now, that was a lot of work and a lot of time which was invested. But that problem is now sorted with the brand new PoS system, where validators stake crypto to verify a transaction and propose a block based on the amount of crypto they hold and the duration they’ve owned it. Then, other validators attest that they’ve seen the block. When there are enough confirmations, the block can be implemented into the blockchain. Validators are awarded crypto coins for the successful block proposition. Because the PoS system is more energy-efficient, it’s more scalable and there is less brainpower and energy which is wasted. The original Ethereum blockchain can support only 30 or so transactions per second. However, Ethereum 2.0 has promised up to 100,000 transactions per second through the use of shard chains. Cryptocurrencies’ environmental impact has come under fire in recent weeks. Influential investors and governments have raised the alarm on crypto’s energy consumption. Ethereum 2.0 and other blockchains running the PoS concept may help take the industry into the future.
I am definitely sure now that with the above explanation there must have been a greater rise in curiosity and even interest for some in trying this out. Well, Ethereum 2.0 hasn’t been fully launched as of yet. But even with the delays, the developers kept making progress with the development of Ethereum 2.0. It is now said that the release will take place in three phases namely the beacon change, the merge, and shard chains. The beacon change had already happened in the month of December last year. The merge, which is the second phase, which is basically the merging of the beacon chain into the mainnet, is scheduled to launch on Aug. 4 in the London hard fork. And the final phase, the shard chains, will mark the full realization of Ethereum 2.0 which is slated for the year 2022.
So dear cryptocurrency investors you need to have a little bit more patience and cross some more months till Ethereum 2.0 blows the cryptocurrency universe and is available to you too.
