Ethereum 2.0

Countdown to Ethereum 2.0

| CryptoPress

December 1st was the confirmed date for the implementation of the long-awaited evolution of the aforementioned cryptocurrency, and the news did not take long to impact the price of ¨Ether ¨ which suddenly went from 380 to 407 USD to later retract at $401.

The novelty, on the other hand, had a strong impact on the volume of transactions with a rise of no less than 30%.

Current Ethereum users, however, will not notice the difference as both versions will coexist for a considerable time as, as those responsible for the Ethereum Foundation assured, phase two consists of a solid long-term project.

In this regard, Justin Drake, from the Ethereum Foundation, assured that it is even very likely that there will be a 3.0 upgrade to solve any problems that may arise.

Good news for those who have waited for years for the new version of this cryptocurrency to be a reality by the end of the year. A novelty that promises to revolutionize the crypto world with an evolution that, it is claimed, brings with it an Ethereum that in many respects will be simpler than its predecessor.

But what is Eth2?

Ethereum 2.0 is a planned hard fork for the Ethereum network that will implement several significant protocol upgrades. The current version of ETH is known as Ethereum 1.0. In this guide, you’ll learn everything you need to know about Ethereum’s upcoming update and its impact on ETH prices.

Ethereum 2.0 represents an important step forward in the history of the blockchain. It takes into account all the latest developments and security upgrades.

Formal Ethereum 2.0 is a mixture of technologies such as Ethereum 1.0 and SwissEthereum, which was designed to take the latter codebase and fix its shortcomings in areas such as transaction speed and costs.

Dec. 1 marked a pivotal event for the entire crypto industry as the first block of the new Ethereum network was generated, the one developers had been preparing to see through for the past few years.

Some exchanges have already begun updating their nodes to stay in sync with the changes and to be ready for the rollout of the new network.


ETH 2.0 countdown

When will Eth2 fully launch? It has been a few months now with no news of eth 2.0 and its anticipated features, which is slated to be more scalable and efficient than its predecessor (Ethereum). The future of blockchain technology might be just around the corner thanks to the developers dedicated to the cause, but from the outside, it can seem quite unclear.

DApp users are getting anxious in the face of delayed Eth2. Developers have also started operating their own independent test networks for the application they wish to launch. The waiting game has been on for a while now as we anticipate the fully launched version of the Ethereum2.0 network.

For those of us that keep up with the development of Ethereum, time is always a factor. Regardless if you are a full-time hodler or just simply follow the news/development updates — there is never enough time in the day.

What is Ethereum Serenity?

Ethereum 2.0 upgrade is called ‘Serenity’, is a multi-phase upgrade package that will make Ethereum 2.0 more scalable and resilient. To put it simply, Serenity brings two significant changes to Ethereum: the shift of the blockchain from a proof-of-work (PoW) consensus method to a proof-of-stake (PoS) paradigm, and the introduction of Ethereum sharding. Serenity will deploy in four stages due to the update’s complexity.

Ethereum 2.0 phases

  • Phase 0: Launched on December 1, 2020, Eth2’s Beacon Chain is the network’s coordinating mechanism and utilizes Casper Proof of Stake. Validators validate transactions and create new blocks on the network in return for a share of the network’s transaction costs. The Beacon Chain will maintain and administer a validator registry. It will be hundreds of times more resource-efficient than Ethereum’s present structure. During this stage of the Serenity deployment, the Beacon Chain blockchain will run alongside the current PoW Ethereum 1.0 network.
  • Phase 1: Connects the traditional Ethereum network to the Eth2 blockchain. Shard chains are formed by sharding or dividing, the blockchain’s data processing tasks, allowing each validator to handle just one shard of the network instead of a whole chain reduces validator effort. The Ethereum blockchain will be divided into 64 shards, one of which will be Ethereum 1.0. Instead of a fully completed network merging, sharding will be a trial run in Phase 1.
  • Phases 1.5 – 2: The complete merger of Ethereum’s network shards. ERC-20 tokens may be transferred from one blockchain to the other in Phase 1.5. After that, smart contracts deployed on any of the shards will be able to interact with Ethereum smart contracts on any of the others. How this cross-shard interoperability will be accomplished is unknown.
  • Phase 3: It refers to any additional future features or improvements that developers will need to implement in order to guarantee a seamless and safe transition to Eth2. This step may include introducing additional privacy technologies or Beacon Chain shards as needed.

ETH2 Staking

There are two types of staking programs that allow for large payouts: a worker-based stake (also called EPoS) and a time-based stake (also called ETH2).

The Eth2 staking system has been reworked to use a hybrid Proof of Work/Proof of Stake design. The new system is designed to place the control in the hands of a smaller pool of token holders and redistribute earned tokens amongst a wider range of members.

Starting with Eth2 staking, the funds will be accumulated using all of the ETH that is earned through block rewards and fees. This will allow for a larger number of projects to be funded than was possible with just donations. Once setup is implemented, staking should occur once per day at midnight, UTC.

To participate you pay a deposit in ETH to the smart contract, which is refunded to you at the end of the period. Each participant buys an amount of Eth2 based on his or her deposit; the more you deposit, the more Eth2 you are entitled to. You can claim your Eth2 at any time, but if there are more requests than there is available supply then users will be allocated it on a pro-rata basis.

If you stake Eth2 tokens on an annual basis, the rewards you can earn are calculated based on the number of tokens in your wallet and the length of the staking period.

Updated: July 17, 2021.


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