ALL ABOUT ETHEREUM 2.0
Right now everyone in the crypto market is eyeing the upgrade ‘ 2.0’ of the Ethereum chain. The Ethereum chain is still the most used blockchain in the crypto market today. All major cryptos first bring their tokens on the ERC20 itself and then move their tokens onto their chain after developing their own blockchain. Ether is the token of the Ethereum chain and the second-largest crypto in the crypto market after bitcoin.
As the use of the Ethereum network increased, the speed of operation of this blockchain slowed down and the problem of increasing gas fees was also seen. Due to this problem of the Ethereum network, many such projects came into the market which is making their place in the market by claiming themselves to be better than Ethereum. There are also a number of projects that are solving the problem of Ethereum scaling and gas fees by offering the option of a sidechain with Ethereum such as the Matic network.
Problems Of Ethereum 1
Two of the biggest problems with the Ethereum network are the late completion of transactions and the ever-increasing gas fees. The dap or smart contracts that are using the Ethereum blockchain today are not able to make their project as good as they should be and that is why they are not able to reach their project to more people.
Transaction fees are another big problem, even if we leave out the speed. For small transactions, fees are being paid more than the transaction price and this is the reason that developers are looking at the option of Ethereum Chain. Scaling and low fees may be available in other networks, but network security is a big issue as 51% of attacks persist due to low validators.
Ethereum is a proof-of-work-based blockchain and requires a large amount of computer power. More and more computer power is becoming very expensive on the one hand, it is also posing a threat to the environment. Today many people are raising their voices about the pollution caused by crypto mining. The problem of bitcoin’s blockchain is That it cannot be changed but the advantage of the Ethereum network is that change is possible here and this is what is happening in Ethereum 2.0.
What is Ethereum 2.0?
Simply put, the Ethereum 2.0. Ethereum network is an internal upgrade of the Ethereum network in several phases with the aim of making Ethereum more scalable (more transactions in less time), more secure, and more durable. This upgrade will gradually complete several milestones in the Ethereum ecosystem.
The goal behind doing this upgrade is to successfully complete thousands of transactions in a second on the Ethereum network so that the applications built on the network can be used on a large scale, which can be used by as many people as possible. But a block is created every 12 seconds. Along with this, the main objective of this upgrade is to minimize the network fee.
The security of the network is the most important thing for any blockchain so that the network can be protected from 51% of attacks. Validators work to protect the network. Right now Ethereum network is working on Proof of Work so mining blocks of Ethereum requires a huge setup and technical know-how which is a big problem, yet Ethereum is the most secure network in the crypto market.
Moving from Proof and Work to Proof of Stake is the main objective of Ether2 and it requires 32 Ethereum stakes to become a validator, then neither Proof and Work requires as much computer power nor much technical know-how. The pool can take advantage of validators even after having less Ethereum stake in the share.
BEACON CHAIN is the first halving for Ethereum 2 which has gone live at the moment. It aims to prepare the groundwork for bringing the network from Proof of Work and Proof of Stake. It is being used for staking Ether which is Most important for this upgrade.
- BEACON CHAIN will not make any changes to the way we are using the Ethereum network today.
- It will work to support the network.
- This will introduce Proof of Stake in the Ethereum ecosystem.
- You can call this the “Phase Zero” of this upgrade as a technical road map.
The number has so far exceeded the number of Ether stakes and validators required for this upgrade. There have been 7,545,733 total Ether stakes and 228,106 total validators so far which is the Ethereum network and the fastest, cheapest, And enough to make it safe.
CONNECTING THE MAIN CHAIN WITH BEACON CHAIN
The Ethereum main chain will have to be linked with BEACON CHAIN at a specified time after completing a halving and a halving is likely to occur in the last month of 2021. This upgrade will move the Ethereum network from Proof of Work to Proof of Stake and will be a sign of making mining very economical. This upgrade will move the system towards shard chains.