Ethereum 2.0 is the upgraded version of the ethereum network. It offers revolutionary change to the network.
Ethereum is among the most popular cryptocurrencies in the world. It offers the development of decentralized applications with the help of smart contracts. Moreover, numerous defi technologies are running on the ethereum blockchain. Currently, NFTs business is also flourishing the use of ETH.
Ethereum 2.0 will solve the scalability issue of the ethereum blockchain. As the number of transaction on the network increases, so does the fee of performing transactions. The platform is ever-expanding. Hence, it can be impractical to use in the long run.
What is Ethereum 2.0?
Ethereum 2.0 is long-awaited by ethereum miners. It will make the platform scalable with a shift from Proof of Work (PoW) to Proof of Stake (PoS). Proof of work involves rewarding miners for their work of validating the blocks of data on the blockchain. Subsequently, the mining requires more computing power as the blockchain grows.
On the other hand, Proof of Stake (PoS) involves staking power. You can commit your funds (i.e 32 ETH) and get paid for validating the transactions.
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Shard chains have particular subsets of a particular blockchain. So a single node (computer validating the transactions) has to download and compute a slice of the blockchain. Ethreum 2.0 will create shards of the ethereum blockchain. Thus the overall capacity of the network will improve.
The job of the beacon chain is to keep all the parallel running shard chains synced in. It will provide consensus to shard chains.
The beacon chain is a new kind of blockchain in the crypto space. It will be a crucial part of ethereum 2.0.
Ethereum 2.0 upgrade is necessary for the sustainability of the ethereum network. It is already in the process. Beacon chain’s release is the first phase of development. Shard chains and Staking will follow this.
The full roll-out of ETH 2 is expected after 2021.