The first version of Ethereum 2.0 will be launched on December 1, 2020. With the completion of the transition, the scalability and security of the Ethereum network will be greatly increased. What is Ethereum 2.0 and what will change?
The date that Ethereum investors are eagerly anticipating has become clear today, and Ethereum 2.0 is starting on December 1, 2020.
Ethereum 2.0 is a new generation version of the Ethereum blockchain. It is aimed to overcome the scaling problems experienced in Ethereum’s first version 1.0 with 2.0. In the current state of Ethereum, an average of 15 transactions can be processed per second and this capacity is insufficient. Those who follow Ethereum closely will know how CryptoKitties game running on Ethereum clogged the network for a while. Insufficient capacity also causes transaction fees to increase exponentially. Last August, average wages hit an all-time high of $ 12. High fees and extended transaction times are a major obstacle to using and developing Ethereum.
What is changing with Ethereum 2.0?
Basically, Ethereum’s current consensus mechanism will be Proof-of-Stake (PoS) instead of Proof-of-Work. Of course, this transition will be made gradually and will spread over the years. With PoS, new block production and block verification will be provided by ETH, which investors lock into the system, not the mining process that requires energy consumption. The incentive mechanism will also be operated with the awards to be given in return for the locked ETH. Since there is no mining process that requires energy consumption, the PoS system is considered much more environmentally friendly.
Meanwhile, ETH investors will be able to earn passive income over the ETHs they lock into the system as of December 1, 2020.
With Ethereum 2.0 Phase 1, it is stated that the capacity will be increased to 100 thousand transactions per second. This is far beyond the often compared Visa’s. Visa can make 65 thousand transactions per second.
In general, these will be the features that Ethereum 2.0 will bring to Ethereum. If this transition is completed successfully, an era will close and a new era will open for Ethereum.
Ethereum 2.0 will affect not only Ethereum but also the cryptocurrency markets. The majority of cryptocurrency projects still on the market are located on Ethereum. Therefore, increasing capacity and speed in Ethereum is of great importance for all.
Ethereum 2.0 is moving to Stage 0 on December 1, 2020. Phase 1 and Phase 2 will follow. The transition to Stage 2 may take 2022 or even 2023.