What Is Ethereum 2.0?

The Next Leap In Blockchain Tech Explained

In 2020, all eyes are on Ethereum as the second-largest cryptocurrency undergoes a significant upgrade.

Ethereum 2.0 Rollout In Three Phases

A few basic facts about Ethereum in its current state is that it is slow, relatively expensive to use, and can’t scale to save its life. What’s more, Ethereum’s proof of work network is so inefficient that each network transaction requires the same amount of energy it takes to power an American home for a day.

Proof of Stake In a Nutshell

In proof of work, miners utilize extreme amounts of computational force powered by incomprehensible amounts of electricity to earn block rewards. This whole process keeps the network honest, secure, and stable, but comes at a big cost to performance and the environment.

The Beacon Chain

First and foremost amongst Ethereum’s crucial upgrades is its phase 0 Beacon Chain upgrade. Phase 0 sets the stage for the rest of the show and contains the most hotly anticipated aspect of the ETH 2.0 rollout — PoS staking.

Ethereum Starts Sharding

From a performance perspective, phase 1 is immensely important. This is where sharding comes in to play. In effect, sharding allows for parallel processing of transactions so that a blockchain can handle way more transactions, rather than the few Ethereum is capable of now.

Ethereum the World Computer

Right now, the computation side of Ethereum is handled in the EVM (Ethereum Virtual Machine). Smart contracts are all executed by the EVM, as are financial rules like how transactions are charged in ether. While it works well, the EVM as operated by ETH 1.0 is pretty rigid.

When Ethereum 2.0?

So, when exactly is all of this supposed to happen? The answer is nobody knows, unfortunately.



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