Latest:
Blog Cryptocurrency 

New Upgrade of Ethereum: Ethereum 2.0

Nxtgen Virtue

Snapshot

  • Ethereum 2.0
  • Issues with Ethereum
  • Ethereum 2.0 Release Date
  • Ethereum Upgrades
  • Staking in Ethereum 2.0
  • Ethereum 2.0 Status
  • Position of Current Ethereum Holders

After Bitcoin, the mainstream cryptocurrency is Ethereum. For the past few years, Ethereum is witnessing some problems within its network and is long overdue for an upgrade. 

Ethereum 2.0

Ethereum 2.0 is the new upgrade of Ethereum that will address some core issues related to the Ethereum network. If this new version of Ethereum can achieve its objectives, it will help Ethereum 2.0 network to gain more adoption all around the world.

Issues with Ethereum

Ethereum 2.0 is aimed at addressing some of the key issues of Ethereum: scalability, security, and sustainability. The new version of Ethereum is expected to be faster, more secure, and utilize few resources. 

Ethereum 2.0 Release Date

As of now, there is no date set for the launch of Ethereum 2.0. Though, the transition process has already begun. 

Ethereum Upgrades

The Beacon Chain

It was launched in December 2020 and will introduce the staking concept to the platform. The reason for launching it first was because other upgrade components will work on top of it. 

Ethereum Mainnet Merge

“The Merge” as many call it, is the merging of the current Ethereum mainnet with Beacon Chain proof-of-stake protocol. Once ‘the Merge’ is concluded, mining will not be required, and Ethereum holders will have to shift to staking Ethereum, to earn more Ethereum tokens (ETH). 

Shard Chains

Implementation of the Shard Chain will provide more speed and capability to handle more traffic. In ‘Sharding’, the database gets horizontally split so that the transaction load can be distributed on the network. It will reduce congestion and will allow more people to participate in the network.   

Launch of eWASM (WebAssembly)

It is the final stage, in this stage, the EVM (Ethereum Virtual machine) will be replaced by eWASM. EVM is the engine on which the current platform is working and executing all the tasks. eWASM will make the network more efficient and fast. 

Staking in Ethereum 2.0

Staking is the process in which cryptocurrencies are locked to validate transactions in a blockchain, to earn rewards. 

Proof-of-Stake system will allow users to stake their Ether tokens, to earn more, instead of earning them through the mining process. This will utilize less energy and fewer resources will be required to keep the network functioning. It will also ensure more network safety and will be more efficient. 

Ethereum 2.0 Status

It’s still early days to comment on Ethereum 2.0. As the project is being launched in phases, nothing can be said until the full transition is in effect. 

Position of Current Ethereum Holders

Ethereum 2.0 will have no impact on the current ETH holders. It is being predicted that the complete transition to Ethereum 2.0 will increase the value of the ETH token.    

Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investing.

Photo by – elifxlite on Pixabay