Ethereum 2.0 is next and upcoming and to go live – everything to know about it

The next-generation Ethereum is the next new thing to go live in the Ethereum blockchain after being in the works for many years. According to the best cryptocurrency development company in India, there are chances that it might go live by the 1st of January 2021 and is quite good to go as well. This new thing will be a new transformation as Ethereum 2.0 will change its model from Proof-of-work to a Proof-of-stake where all the participants will be able to hold their cryptos with the network as collateral.

ITSpectrum, a crypto service provider in the industry states that with Ethereum 2.0 coming into effect there can be over 16,384 validators who have to opt for a minimum stake of 32 ethers which can be worth over $12,800 depending on the current market rates. Here staking ether can be termed like cryptocurrencies underpinning the entire network. After achieving a minimum staking amount the Beacon chain will get triggered automatically facilitating the switch and the Ethereum 2.0 genesis event as well.

Changes to be expected in Ethereum 2.0

As suggested by the best cryptocurrency development company in India, according to market reports there can be some important changes regarding Ethereum 2.0. As said earlier that the Ethereum blockchain will transit from PoW to PoS which is more effective and energy-efficient in terms of maintaining the entire network. In other words, when talking about the PoW system there is only one unit of computational power equating to a single unit of mining power, whereas on the other hand when talking about the PoS system a single unit of value is able to secure a single unit of mining power for the validator.

When we considering both the systems, it is quite evident that both are designed only to incentivize the network maintenance, and ensure that the data in the blockchain remains tamper-proof at all times. In the later stage, there will be Ethereum network sharding where there will be a portion of the nodes calling for validation for any transaction which also helps in increasing the network’s output at an astonishing rate.

Some key features of Ethereum 2.0 which might also include are –

•    Staking of ETH

As Ethereum will be transiting to a new Proof-of-Stake Consensus so there will be a need for a much more energy-efficient method of maintaining the network which can be done by staking only.

•    Sharding

In terms of sharding, Ethereum might be broken into 18 shards where all the shards will operate independently at the same time which will further improve efficiency as well.

Latest scenario of Ethereum 2.0

According to ITSpectrum, Ethereum 2.0 is now passing through a serenity phase 0 where the reception to the testnet is quite formidable with over 20,000 validators signing up regularly and putting in their resources in terms of helping the Beacon chain testnet. After the development of the Beacon chain, the development phase would move onto the building phase 1 – shard chain and then consecutively to the final phase 2 – execution engine. From there onwards, ETH will be merged with ETH 2 which initiates the dawn of a new era for Ethereum.

However, it might take several years at a stretch for the Ethereum 2.0 up-gradation process to start considering all the complexities involved with it. As suggested by ITSpectrum, as of now, the biggest hurdle to cross over is the initial launch of Ethereum 2.0 which will be an important milestone to be covered as per the Ethereum 2.0 roadmap.