What is Ethereum 2.0? (what is difference between ETH and ETH 2.0 update) Eth 2.0 explained!
12This is my video discussing the differences in ethereum and ethereum 2.0! COINBASE REFERAL: https://www.coinbase.com/join/nowak_9c binance (for alt coins) refferal: https://www.binance.com/en/register?ref=FF20GHNY (you earn crypto with both of these links)
This video is me discussing the difference between ETH and ETH 2.0 and how ETH 2.0 now provides staking with ethereum. Ethereum 2.0 will have a massive increase in useability, scaleability and transactions per second. Eth 2.0 update will be the best improvement we've seen with eth in a LONG time. I also personally think that the ETH 2.0 update will solve a lot of potential issues with eth. Such as eth having some nice things for the enviornment, for eth having improvements on tps, and eth 2.0 just being a better blockchain overall.
I'm going to also be including an article discussing ethereum 2.0 and how good it is:
Evolving Ethereum: What The Second-Largest Cryptocurrency's 2.0 Upgrade Means For Investors:
12:00:23 GMT, December 1, 2020. This is the time and date set aside for Ethereum 2.0’s genesis block - representing the biggest upgrade to Ethereum’s network since its inception, and possibly the largest for any established cryptocurrency. But what does the arrival of 2.0 mean for investors?
In early November, the Ethereum Foundation commenced the first process of the long-awaited Ethereum 2.0 upgrade specifications, detailing the rules of the genesis phase 0. The phase stated that around 524,288 ETH needed to be pledged with at least 16,384 validators to invoke the proof-of-stake process.
On November 24 it was confirmed that the deposit milestone had been reached and the genesis process - as detailed in the diagram above - was ready to begin.
The arrival of ETH 2.0 has been welcomed as a momentous achievement for the network, with Ethereum 2.0 R&D member Hsiao-Wei Wang saying: “Thanks to all the Eth2 teams and the community that wrote the history. And thanks to the Ethereum critics who made us stronger. Don’t forget to update your Eth2 client in a couple days.”
But what is Ethereum 2.0? And will its development affect the price of ether in the coming weeks? Let’s take a look at the wider ramifications of the hotly anticipated arrival of 2.0:
What Is Ethereum 2.0?
Ethereum 2.0, otherwise known as Eth2 or simply ‘Serenity’ is an upgrade to the Ethereum blockchain. This upgrade promises to boost the speed, efficiency and scalability of the Ethereum.
The move is set to greatly benefit Ethereum and the many projects that operate on Ethereum’s blockchain, which is more advanced and usable than Bitcoin’s older blockchain framework.
Ethereum’s 2.0 update is set to launch over a series of phases, with the first set to roll out on December 1, 2020. Significantly, Ethereum 2.0 will use a proof of stake (PoS) mechanism, which flies in the face of its original proof of work (PoW) consensus.
Transitioning Towards Proof Of Stake
When it comes to the Ethereum blockchain, it’s essential to validate transactions in a way that upholds the effectiveness of decentralization. Like many cryptocurrencies, Ethereum currently uses a consensus mechanism called proof of work.
This allows miners to use computer hardware processing power to solve rich and elaborate mathematical problems and verify transactions. The first miner who solves a mathematical equation adds a new transaction to the record on the distributed ledger. Subsequently, they are rewarded with cryptocurrency.
Proof of stake is a much more efficient way for transactions to become validated in order to verify a transaction when compared to PoW. Validators simply propose a block based on how much crypto they hold, and how long they’ve held it for.
Fundamentally, this process is much healthier for the environment, due to the significantly lower levels of energy being consumed by PoS verification. Furthermore, PoS also means that there won’t be as much computing power needed for users to secure the blockchain.
The cryptocurrency landscape is livening up in the wake of bitcoin’s push towards surpassing its all-time high. If you’ve invested in Ethereum and are simply happy to hold, trade or use your currency on decentralized apps, you don’t need to make any changes in order to prepare for Ethereum 2.0. Simply continue using your favorite crypto exchanges to buy and sell ETH or other currencies that run on Ethereum’s blockchain like usual.
However, if you’re interested in taking on the new Ethereum network there is certainly an opportunity for you to begin staking at the Genesis phase of the project instead of waiting for Phase 1.5.
For reference, staking is the process by which validators commit ETH to the Ethereum 2.0 blockchain as a means of proposing the development of new blocks. To become a fully-fledged Ethereum validator, however, ETH holders must stake 32 ETH into the official deposit contract developed by The Ethereum Foundation.