Ethereum is a big name in the world of cryptocurrency. It is set to upgrade into a new, more efficient network, fast, and scalable, known as version 2.0. If you want to buy cryptocurrency, consider Ethereum since this upgrade will take it to new heights, offering convenience and maximum choice to users.
This post will equip you with an Ethereum cryptocurrency overview and a breakdown of Ethereum upgrades together with the major changes that will come with the new ETH 2.0.
What are the key features of ETH 2.0?
Here are the main features of Ethereum 2.0;
Staking: Ethereum will change to proof-of-stake consensus. This is an efficient method of maintaining the network.
Sharing: The new version will come with 18 shards that function at the same time. This will increase its operating speed.
In fact, the new version of ETH will change the current network. It will eliminate the concept of mining.
Phases of Ethereum 2.0
There are three phases of the new version of ETH.
Phase 0 (Beacon chain)
Phase 0 was first launched in December 2020. It aimed to deliver randomness and attestations for a shard block. This phase also introduced staking to ETH, providing users with an exciting opportunity to stake 32 ETH2 on validator nodes.
Phase 1 (Shard Chain)
This phase allows ETH to scale efficiently through shards. It has split the network into 64 shards which run at the same time. This phase will improve the efficiency of ETH when it comes to processing transactions. It will also allow better communication between the shards through crosslinking.
Phase 2 (Execution)
This is the final phase of ETH 2.0. Once this stage is complete, ETH will be merged into a new version called Ethereum 2.0. This is when newer proof of stake and existing proof of work comes together.
Proof of work vs. proof of stake
Proof of work is the traditional method that was implemented by Bitcoin. Under this blockchain consensus, miners and CPUs deal with complex algorithms to validate blocks. These blocks are fed with transactions and when full, they are logged on the blockchain network by miners.
On the other hand, the proof of stake solves the complicated issues associated with native proof of work. This algorithm allows miners to validate transactions made on the network they are assigned. PoS will offer ETH better accessibility, making it more user-friendly.
ETH 2.0 release date
The release date for the new version of ETH 2.0 is still unknown. It is, however, speculated to happen in 2023, following the phase 0 launch in 2020. 2023 is near, so you can buy Ethereum and enjoy the perks of phase 0.
The next phase in the ETH upgrade is merging the mainnet with the beacon chain. According to reports, this step is expected to happen in August 2022.
The current state of Ethereum
Since phase 0 was launched in December 2020, Ethereum has undergone three upgrades.
It was launched in April 2021. Its objective was to optimize gas costs for EM actions. This upgrade helped Ethereum to support multiple types of transactions.
Launched in August 2021, this upgrade reduced gas costs for particular operations.
This is the latest upgrade that was launched in October 2021. It provides support for sync committees that bring inactive validators and enable light clients.
How the launch of ETH 2.0 has impacted the price
The price of Ethereum has actually doubled since the launch of phase 0. As of December, Ethereum was going for 600 USA/EN dollars. But today, you can find it at $1220.
What can I do with my new Ethereum?
There is nothing you can do with ETH 2.0 at the moment. These are digital receipts and the features contained in regular ETH won’t be available in ETH 2.0 shortly.
An upcoming upgrade of Ethereum could change how it operates. It will help grow in value with every transaction made. Over the past weeks, Ethereum has grown over 8% compared to other cryptocurrencies. This might be good news for investors looking for the best crypto to venture in and those who want to exchange cryptocurrency.