Ethereum 2.0 also known as Serenity is a long project which aims to bring some important changes in both Proof-of-Stake and Proof-of-Work.
Serenity is a significant upgrade over the old blockchain. All of us know and also have witnessed that Bitcoin is the leading cryptocurrency in the crypto market. It consists of many flaws and instability, still, then it is leading. But Ethereum 2.0 is expected to overcome Bitcoin.
Why Is It So Hyped?
The making of Ethereum has been going on for five years. Scalability has been a concerning issue in all cryptocurrencies, but Ethereum 2.0 claims to solve the issue of Scalability, as it has been designed in such away.
In simple words Ethereum 2.0 is massive. It is also said that the transaction fees are expected to be low and affordable. This can be a reason behind the attraction of many people joining and investing in the crypto market. It has no cap which will bring changes in the ETH supply. However, it is important to note that ETH supply is said to be low in the new blockchain, compared to the present supply.
The upgrade of Ethereum 2.0 over Ethereum 1.0 will not occur suddenly, it will take a lot of time for Ethereum 2.0 to stabilize properly, and fix all its problems.
When is Ethereum 2.0 happening?
Ethereum 2.0 is launching in several phases, with the first upgrade, called the Beacon Chain, having gone live on December 1, 2020. The Beacon Chain introduces native staking to the Ethereum blockchain, a key feature of the network’s shift to a PoS consensus mechanism. As the name suggests, it is a separate blockchain from the Ethereum mainnet.
The second phase, called "the Merge," is expected in the first or second quarter of 2022 and will merge the Beacon Chain with the Ethereum mainnet.
The final phase is shard chains, which will play a key role in scaling the Ethereum network. Instead of settling all operations on one single blockchain, shard chains spread these operations across 64 new chains.
This also means that it will become much easier from a hardware perspective to run an Ethereum node because there will be far less data that needs to be stored on a machine.
The full upgrade to Ethereum 2.0 is expected to take place by 2023, according to the Ethereum Foundation.
Benefits And Features Of Ethereum 2.0
The first benefit of ETH 2.0 is that it is fast, cheap, and scalable. It will be able to process more transactions per second count for centralized and decentralized finance. New ETH 2.0 will be able to process 100,000 transactions per second (TPS), compared to older ETH which has only 15 transactions per second (TPS).
It also helps end environmental problems. And the second benefit Ethereum 2.0 brings is a shift from the Proof of Work (PoW) to the Proof of Stake (PoS) mechanism. And the benefit of this is that this will bring changes in the mechanism of validating transactions making the network more secure.
All these features and benefits can be said to be the reason why people are now wanting to shift to Ethereum 2.0 from Ethereum 1.0.
Proof-of-Work: It is a traditional mechanism that is used by Ethereum 1.0 and Bitcoin. The working of this mechanism requires a lot of computer power for executing complex mathematical calculations for decrypting all the transactions.
Proof-of-Stake: It is a mechanism that is developed as an alternative to PoW. The reason for developing this mechanism is to lower the consumption of power which was previously used by PoW. It basically gives the mining powers to the miners based on the coins percentage of the miner.
What Is The Reason Behind Its Delay?
For bringing more scalability Ethereum 2.0 is moving towards Proof-of-Stake. And this is also the reason behind the delay of Ethereum 2.0, as the entire shifting process is taking some time. According to some reports, Covid is also a reason behind its delay. Recently, Vitalik Buterin did an interview with Lex Fridman and said that Ethereum 2.0
Ethereum 2.0 is a significant update over Ethereum 1.0 as it has claimed to bring more scalability in the entire blockchain. However, it has been delayed but the makers have claimed that it will arrive in the market by 2023.
The shift from PoW to PoS is taking some time. And even after its launch, it will have some faults and problems, but it will be fixed timely. The entire process will take time and it will not occur in the blink of an eye.