The next update of the Ethereum Blockchain network towards 2.0, which seeks better scalability, has become a real event for the crypto world. It is the second digital currency in Market Capitalization after Bitcoin according to CoinMarketCap.
The Ethereum update has been announced for quite some time now and is expected to enter the scene by the end of 2020. The expectation of working with the Proof-of-Stake is great and a sea of opinions can be found in social networks.
On this occasion, a summary of the most essential aspects of this update is presented. In this case of accessibility, speed and the improvement in the scalability of the network, one of the weak points of this cryptomonnage.
This is how the whole process leading to Ethereum 2.0 started
The idea of Ethereum 2.0 was longed for by the majority of the community. It is not a new idea, but a final product of a series of updates planned for the network from the year 2015.
The most important of these updates have been: Homestead (2016), Metropolis: Byzantium (2017), Metropolis: Constantinople (2019) and most recently Istanbul (2019). All these updates were made within the Proof-of-Work (PoW) scheme.
The arrival of Ethereum 2.0, is a radical change in the whole scheme. Mainly, because PoW is replaced by Proof-of-Stake (PoS). This is the central axis of the update.
The lack of scalability is the main factor that pushed the development of Ethereum 2.0. It is important to mention, at the same time, that the Blockchain of this crypto currency does not exceed the gap of 15-20 transactions per second. This is a major weakness that prevents large-scale use.
Compared to other projects, such as the Solana Blockchain, Ethereum lags far behind. The former boasts of processing up to 59,490 transactions per second.
Istanbul brought hope and many expectations, the same is to open the way for the transition from PoW to PoS. According to Ethereum co-founder Vilalik Buterin, the capacity of the post-Istanbul Blockchain would be about 3,000 transactions per second.
Ethereum 2.0 is expected to help significantly improve the scalability of the network.
120,000 Ethereum wallets ready for ETH 2.0
What will the Proof of Stake bring?
As already stated, the PoS is the most important of the network changes. It means a complete change of the validation structure of the Blockchain. Ethereum 2.0 can be translated as everything related to PoS.
The PoS comes to overcome two big headaches of the Etehereum community, they are the scalability and the accessibility. In the first case, it should be noted that, so far, with PoW, blocks are mined in sequence and each block has a capacity cap.
This means that if the number of transactions exceeds the limit of one block, the remaining transactions must wait for the next blocks. This is why criticism of the slowness of the Ethereum has been a constant.
The other problem that would overcome Bitcoin Era, is accessibility. The miners with PoW have been a key part in maintaining the decentralized networks. However, the costs of access are very high. Electricity and hardware are not easily accessible to everyone.
Thus, with Ethereum 2.0, the aim is to open the field for greater participation of validators. They will no longer have to pay a high cost to be part of the network, taking into account that electricity and hardware are no longer a necessity for validation.