web design houston

Web Design Agency based in Houston that specializes in Websites design, SEO, Digital Marketing, Mobile Apps Development, Blockchain Solutions, and others.

2502 La Branch St, Houston, TX 77023
+1(855)-931-3205
support@bereshkaweb.net

Folow us

Ethereum 2.0: the Future of mining

Ethereum 2.0: the Future of mining

Ethereum 2.0: the Future of mining

Ethereum 2.0 is a global update of the Ethereum blockchain, which is scheduled for the fourth quarter of 2022.

The basics

Ethereum 2.0 has been successfully launched in the form of a testnet aimed at detecting problems when switching from the Proof-of-Work algorithm to Proof-of-Stake. At the same time, the entire ecosystem based on the original Ethereum protocol will continue to exist (including all smart contracts) and will work exactly the same as ETH 2.0 and the backward compatibility function will be opened to switch from the first version to the second, but the transition in reverse order will be impossible. (If you want to understand how protocols work, read our article, what are smart contracts.)

 

One big difference, as already mentioned, which we will see with the release of Ethereum 2.0 is a departure from Proof-of-Work. This is a consensus mechanism that is also used in bitcoin mining. In Eth 2.0, mining will become a thing of the past, as the focus will shift to betting. The verification of transactions in this block chain will no longer depend on computing power — and supporters of this version believe that the update will eventually make Ethereum much more secure. Another big advantage could be a significant increase in energy efficiency, especially given the growing concerns about how much electricity the BTC network consumes. Ethereum 2.0 is expected to provide a significant increase in throughput, which ultimately means that it will be able to process more transactions per second.

 

As demand is constantly growing, the focus on scalability will be a crucial step in securing the network in the future. This is achieved by using segment chains that allow transactions to be processed simultaneously rather than sequentially. (If you are interested in the topic of blockchain, also read our article top cryptocurrencies, in addition to blockchain)

Ethereum 2.0 Launch History

Ethereum 2.0 is not a new idea in the Ether community. A shift in the consensus mechanism underlying Ethereum to eliminate the limitations of the Proof-of-Work blockchain has existed since the inception of the network. Ethereum 2.0 arrives on the heels of many planned updates to the Ethereum core network after the launch of the Frontier core network in July 2015.

 

The launch of Ethereum 2.0 is especially important compared to previous updates due to the implementation of the Proof-of-Stake consensus mechanism, diverting the network from the existing Proof of Work architecture. Proof-of-Stake will be launched at the first stage of the Ethereum 2.0 upgrade, known as Phase 0.

 

Phase 0

Eth2 will be rolled out in stages, starting with Phase 0 in 2020. At stage 0, the chain of beacons of the Ethereum 2.0 network will be launched. The chain of beacons will implement Proof of Stake and will manage the register of validators who will begin to confirm the presence of blocks on Ethereum 2.0.

 

In order for the chain to launch its genesis block, at least 524,288 ETH must be placed on the network, divided between at least 16,384 validators (these numbers were chosen to ensure sufficient security and decentralization). Staking rewards will not be distributed until this threshold is reached, which is partly the reason for some altruistic behavior among the first participants of Phase 0. For a report on what ETH holders are thinking when deciding whether to bet their ETH.

 

This will enable the Proof-of-Stake consensus mechanism along with Proof-of-Work, preventing any failures during the transition process. The phase is called Beacon Chain, and in the early stages of Ethereum 2.0 mining will continue as usual.

 

Phase 1

There is no exact launch date for Phase 1 yet, but it is expected that it will come a year after the launch of the beacon chain in Phase 0. The main improvement of Phase 1 is the implementation of segment chains, the scalability solution mentioned earlier in this article. For Eth 2.0, segmentation will lead to the division of the Ethereum blockchain into 64 separate chains (called segment chains) that work in parallel with each other and interact with each other without problems. Sharding provides scalability, allowing Ethereum to process multiple transactions simultaneously: theoretically up to 64 blocks at a time.

 

Right now, Ethereum (and other PoW chains) can only process one sequential block at a time, which means that if there is a transaction backup, those transactions have to wait until one block is processed before they can be confirmed in the next. Due to the fact that dozens of simultaneous chains interact with each other, the data load can be distributed across blocks that are processed simultaneously.

 

Phase 1.5

An important point in Phase 1 is the merging of the original Ethereum PoW chain with the new PoS chain. In the Ethereum community, this moment is called phase 1.5. In particular, the Ethereum PoW blockchain will be transferred to the Eth 2.0 network and will exist as one of 64 chains of segments along with a chain of beacons, which means that there will be no interruption of continuity or data history.

 

This also means that ETH holders will not have to undergo any token transfer or exchange between Ethereum 1.0 and 2.0; rather, they will be able to freely use their ETH on the second version of the network, without the expected additional work on their part or the risk that their ETH will become obsolete. Although the history of the original PoW chain will still exist, it will no longer need to support the POW consensus mechanism; it will work like any other PoS shard on Ethereum 2.0.

 

Phase 2

Phase 2 is currently less defined than Phase 0 or Phase 1. However, we know that with the successful implementation of both Proof of Stake and Sharding, Phase 2 will allow — among other things – ether accounts, transactions, transfers and withdrawals, and the execution of smart contracts.

 

Conclusion

Ethereum 2.0 was long-awaited and widely discussed in the blockchain ecosystem. Proof of Stake and segmentation significantly improves scalability, security, and availability. For ETH holders, Ethereum 2.0 provides a new opportunity to participate and receive rewards for maintaining the network. For those who want to launch their own validator with 32 ETH, use a third-party provider to host their 32 ETH, or pool their funds with others, the Ethereum ecosystem will host a number of products and solutions, including ConsenSys PegaSys and Codefi teams. (If you are interested in this article, become a member of the crypto world and read our article how and where to buy bitcoin.)

 

Post a Comment