Version 2.0 of Ethereum, also known as Serenity, is soon to be released. With Serenity, ETH will soon move away from Proof-of-Work (PoW) methods, which are also employed in Bitcoin mining.
Instead, Proof-of-Stake (PoS) and Ethereum staking will become the norm. According to Ethereum, the modifications will make the money “more scalable, more secure, and more sustainable.”
What is Ethereum 2.0?
The Ethereum blockchain has been updated with Ethereum 2.0, popularly referred to as “Serenity.” It will increase the network’s speed, effectiveness, and scalability.
Additionally, more transactions will be possible on the network, and congestion and excessive gas prices will be eliminated. This indicates that Ethereum wallet offered by ZenGo X is making the shift to a less energy-consuming technology.
Ethereum will achieve its objectives of being a transparent and open network for decentralised apps and finance once it reaches the last stage of the upgrade, known as “phase 2.” (DeFi).
The Ethereum Foundation has declared that it will formally discontinue using the term “Ethereum 2.0” to describe the update. As a result, Eth1 is now referred to as the “execution layer,” which is where the network rules and smart contracts are located.
The “consensus layer,” also known as Eth2, makes sure that the devices contributing to the network are behaving in accordance with its standards. The Ethereum network includes both of these layers.
Ethereum 2.0 roadmap
After the integration, Vitalik Buterin has now provided a more thorough overview of what lies ahead for Ethereum 2.0 and your crypto wallet.
One of the unique features of Ethereum’s upgrades is the merge. The Beacon Chain, The Merge, and Sharding are these.
In December 2020, The Beacon Change (Phase 0), which introduced the PoS algorithm, first went live. PoS algorithms use less energy than PoW methods. Testing for Ethereum Staking is now underway.
The merging process comes next. The Beacon Chain and PoW algorithms will be eliminated during this significant phase. Ethereum is currently in this stage, and the merge will take place in a few months.
Buterin stated that Ethereum will only be “55% finished once the merge is deployed” and that further improvements will follow when he spoke at the EthCC conference in Paris.
Shard chains will be included as part of the final Eth2 update planned. As transactions can be divided into 64 additional chains, adding sharding to Ethereum 2.0 should enable increased scaling of Ethereum.
Ethereum co-founder Vitalik Buterin referred to this scaling as “even more significant than Proof-of-Stake” in a keynote address at the Singapore University of Social Sciences.
This could be crucial for Ethereum given the abundance of brand-new NFT initiatives that are starting up and the rising demand for the blockchain. A total of 100,000 Ethereum 2.0 Transactions/Second may be possible.
In fact, it is likely that following the merger, the Ethereum gas fees won’t change much. These might disappear only if sharding is put into practise.
The Ethereum website warns that the present plans for Ethereum 2.0 are not definite. The Altair Upgrade, the Beacon Change’s first significant update since its debut, was the most recent Ethereum update. Launch day for Altair was October 27.