Ethereum itself has been criticized for its low efficiency and high gas rates. As Ethereum grows in popularity, its users and applications continue to grow. Entering funds and traffic will increase the demand on Ethereum. At the same time, the rise of new public chains is also gaining heavy traffic and users from Ethereum. Due to the above factors, there is an urgent need to upgrade Ethereum.
The goal of Ethereum 2.0, also known as Serenity or ETH2.0, is to address the present Ethereum network’s scalability and security issues. End of April 2020 saw the introduction of the ETH2.0 testnet, while December 2020 saw the official launch of the ETH2.0 mainnet. Since then, Ethereum 2.0 has been formally launched.
Beacon Chain: Beacon Chain was introduced to synchronize all shard chains and provide consensus to all shard chains. Trade ETH with MEXC Global. This is an important component and was introduced by Serenity to ensure the exchange of information between shard chains.
Shard Chain: In Ethereum, a node is required for everyone who wishes to assess the Ethereum network. A node is a replica of the complete network that serves a specific purpose. Shard chains limit the amount of data that nodes must manage, resulting in greater performance. Shard chains only include a portion of the blockchain.
Ethereum 2.0 vs Ethereum 1.0
- From Proof of Work (PoW) to Proof of Stake (PoS)
Ethereum’s consensus mechanism is Proof of Work, while Ethereum 2.0 uses Proof of Stake. Ethereum’s Proof of Work (PoW) aims to reward miners for creating and validating blocks on the blockchain. However, such a mechanism limits scalability because it requires a certain amount of computing power as the blockchain grows. Trade ETH with MEXC Global. Proof of Stake (PoS) was introduced to attract more validators. That is, anyone with at least 32 ETH can pay for transaction validation and verification.
2. Ethereum 2.0 has better scalability
Ethereum has always been known as the king of the public chain. Many popular projects such as DeFi in the summer of 2020 and NFT & DAO in 2021 are being carried out on the Ethereum public chain. However, the congestion and high gas prices of the Ethereum network have been criticized by users. The reason is that Ethereum 1.0 causes lag and congestion because the network can only support about 30 transactions per second. Trade ETH with MEXC Global. Ethereum 2.0 achieves up to 100,000 transactions per second by implementing a shardchain to solve scalability issues.
3.Ethereum 2.0 will be more secure
Security is also taken into consideration in the Ethereum 2.0 plan. A minimum of 16,384 validators are required to deposit ETH on Ethereum 2.0. This makes Ethereum more decentralized and safer. At the same time, the Ethereum Foundation has set up a dedicated security team to serve Ethereum 2.0 and detect potential network security issues with cryptocurrencies.