Do repost and rate:
The increases adoption of ETH by DApps, DeFi and NFTs has made ETH 2.0 inevitable.
Let us look into various upgrades that are in ETH 2.0:
1. PoW —> PoS
- The transaction validation is moving from mining to staking.
- Miners compete to solve math problems, whereas validators stake their ETH to validate a transaction.
- Miners get block rewards, whereas validators get a percentage of transaction fees.
- This results in less energy consumption and secure network.
- The short comings of PoS are to be overcome by Casper protocol, which is under development.
2. Sharding
- Removes the need for the entire network for consensus for validating a transaction.
- Sharding is a popular practice in Big data. Horizontal partition of data by a cluster of nodes will lead to a better efficiency.
- Better efficiency results in improved scalability.
- Currently, ETH can handle 30 transactions per second, whereas ETH 2.0 can handle upto 10,000 transactions per second.
TLDR:
ETH 2.0 - Less energy consumption, improved transaction speed and scalability, and increased security.
Disclaimer: The article is intended for informational purposes only and should not be considered as investment advice. All the prices and data referenced in this article were recorded on May 29, 2021.
