Ethereum 2.0: A New Dawn for Cryptocurrency
Ethereum 2.0 is here and comes with a promising crypto industry. Ethereum began it’s development in leading smart contracts and DApps only to encounter issues with its scalability, privacy, and governance.
However, the improvements implemented into Ethereum v2 differ slightly compared to the changes that were made during the Ethereum v1 version and include the shift of one major amendment from “proof of work” (PoW) consensus mechanism to “proof of stake” (PoS). This includes a shift from traditional mining towards green forms of extraction, which is one significant turnover. In a PoS system, validators can create new blocks and approve transactions taking into account their crypto asset possessions, increasing their stakes, keeping a blockchain’s ecological impact at minimum and enhancing its overall performance.
Network congestion due to high traffic always results in increased transaction costs for ethereum scalability. Ethereum 2.0 suggests a shard chain system where the network is split into several smaller entities known as the shards. Each shard operates on an individual basis processing either of the transaction smart contracts resulting in a huge number of procedures handled concurrently.
Moving into Ethereum 2.0 is not done in one day since it involves several steps. The initial stage of the process, known as Beacon Chain, was realised during its launching in December 2020, with a view of presenting the suggested PoS consensus mechanism model.t They follow with successive stages that introduce a shard chain until it obtains “Ethereum 2”.
Lastly, besides scalability and environmental issues, the Ethereum 2.0 is more secure, better distributed within Ethereum network. This PoS also prevents the cheating agents from earning some money out of their actions. Thus, this enhances block chain security and resistance.
However, the influence of ethereum goes beyond their own community. The enhanced network puts them in a position to undertake this task where they will jointly develop advanced blockchain technology, DeFi and NFT’s along with a powerful and scaled blockchain base.
Actually, Ethereum 2.0 indicates the strength and maturity of the Ethereum community when building environmentally friendly, scalable and sustainable blockchains. Thus, commencement of an era where worldly collaborations are propelled through Ethereum 2.0.
