Hello amigos, Let’s understand the breaking changes in Ethereum 2.0 and explore why it is expected to be more resilient than its previous version. Overall the aim of blockchain ethereum 2.0 is to increase the scalability and security of the whole chain of network but those are general attributes that will boost the industry. Here we are exploring the most pivotal in details and assessing the vivid impact of those changes.
The first phase of Ethereum 2.0, the Beacon chain, was implemented on December 1, 2020. This was a significant upgrade to the Ethereum blockchain. It works as the backbone of the Ethereum blockchain on Proof-of-Stake (PoS). It also serves as a coordination layer for shard chains. Let’s dive deep into the ocean of the second-best-known crypto, Ethereum, and learn about upcoming upgrades.
Ethereum uses a Proof-of-Work (PoW) mechanism, that requires the miner nodes to solve a methodical puzzle (also known as Math Puzzle), to be eligible to mine a new block. On the other hand, Ethereum 2.0 uses Proof-of-Stake (PoS) Consensus Mechanism, where validators have to stake their ETH to secure the network and validate the transaction.
This change increased the network’s efficiency and reduced electric consumption. Ethereum consumes a lot of energy, as shown in the graph below. That, after the merge of Ethereum 2.0 using the PoS mechanism, dropped by approx 99.95%. You can compare six month data of Proof of Work (PoW) and Proof of Stake (PoS) Electric Consumption.
Ethereum (Proof of Work) Electric consumption
Ethereum (Proof of Stake) Electric consumption
|Proof-of-Work (PoW) Mechanism
|Consumes more energy
|Consumes less energy dropped by approx 99.95%
|15 Transaction Per Seconds
|Promises to support
|Cross-Shard was missing in Ethereum 1.0
|It supports Cross-Shard allows to interact with other blockchains
One of the significant issues faced by Ethereum was transaction speed, which limited the number of transactions the network could process per second. The merge of ETH 1.0 and ETH 2.0 has increased the transaction speed to 100,000 transactions per second. This phase implemented the concept of shard chains, allowing the network to process multiple transactions in parallel, thereby increasing its capacity.
Ethereum 1.0 was based on the Proof of Work (PoW) consensus algorithm. where miners compete to solve a cryptographic mathematical equation to validate transactions and create new blocks on the blockchain. This process requires significant computational power, and a 51% attack can be launched if an attacker controls most of the network’s computing power.
On the other hand, Ethereum 2.0 relies on validators rather than minors. That makes the network more secure than its predecessor.
Using the Proof of Stake (PoS) consensus mechanism makes it harder for attackers to compromise the network. As validators have to stake a significant amount of ether as collateral to participate in the consensus process. In PoS, validators are randomly selected to create new blocks and validate the transactions. This saves more energy and reduces the risk of a 51% attack. It would require an attacker to control a significant portion of the total staked ETH to compromise the network.
Overall, the combination of these security features is expected to significantly enhance the security of the Ethereum network, making it more resistant to attacks and providing a more reliable platform for dApps (Decentralized Applications).
Ethereum 2.0 has also come with upgradeability, allowing for future improvements and enhancements to the Ethereum blockchain network. In Ethereum 2.0, better governance will allow stakeholders to vote for changes in the network. This will create an opportunity for the Ethereum community to make future rightful decisions to make it more decentralized and robust.
eWasM stands for Ethereum-flavored WebAssembly virtual machine. This will replace the current Ethereum Virtual Machine (EVM) with eWASM, which will enable developers to write smart contracts in many other languages and improve the network’s performance. eWASM is still in the development phase, but it is expected to become an essential component of the Ethereum blockchain. This will be a significant upgrade to Ethereum 2.0.
Ethereum 2.0 aims to be a game changer in crypto and NFTs. It will improve the whole ecosystem and fill many loopholes in the Ethereum blockchain network, like the Proof-of-Stake (PoS) mechanism, scalability, and security. And we will witness the rise of Ethereum with the Ethereum 2.0 upgrade.
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