Everything you need to know about Ethereum 2.0

Everything you need to know about Ethereum 2.0

What is Ethereum 2.0? It is a decentralized world computer and commonly used to describe a progression of potential updates to Ethereum to make it quicker and better. it is estimated to launch in Q1 of 2020 and comes with several promising updates to solve issues such as current scaling issues, mining, and to some extent issues with security include proof-of-stake solutions.

One of the main features of Ethereum 2.0 is proof-of-stake. Staking will serve the same role that mining currently serves in Ethereum 1.0, and it will give Ethereum coin holders a way to earn a return on their investment. Staking has numerous advantages over mining as it’s energy-efficient, and it will reduce Ethereum’s inflation rates. Furthermore, Staking is also more secure and decentralized than mining.

At the present time, you will need at least 32 ETH to stake on Ethereum 2.0. Fortunately, you’re able to do this without increasing your power bill as there are no ASICs involved. Staking does not require a powerful computer or special hardware. Most consumer-grade laptops will be able to support at least one validator slot. Of course, you still need to stay online consistently and be available to validate blocks.

Ethereum 1.0 and 2.0 will work in parallel. During phase 0, you will be able to transfer ETH tokens to the Ethereum 2.0 “beacon chain”, which will handle staking exclusively. During phase 0, Ethereum 1.0 will also handle non-staking activity, including transaction activity and smart contract activity.

Ethereum 2.0 also addresses issues of scalability and transaction speed and stops one app from slowing down the network. This can be done thru Sharding method, where Ethereum network is able to split a large database into smaller more manageable parts.

The future is bright since Ethereum 3.0, 4.0, and so on are possible for the future. Ethereum has had some issues it needs to address, but years of work are starting to come together into a solution to these problems that one might call Ethereum 2.0.

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