What is Ethereum 2.0?
Ethereum 2.0, also known as ETH2 or Serenity, is an upgrade to the existing Ethereum blockchain, aimed at improving its scalability, security, and sustainability.
Key Features
- Proof of Stake (PoS): ETH2 transitions from the energy-intensive Proof of Work (PoW) consensus mechanism to PoS, which allows validators to create new blocks based on the number of coins they hold and are willing to "stake" as collateral.
- Shard Chains: This upgrade introduces shard chains that will increase the number of transactions processed simultaneously, enhancing network capacity and performance.
- Beacon Chain: The Beacon Chain is a core component that coordinates the network, manages the PoS protocol, and ensures loss of the Ethereum ecosystem.
Benefits of Ethereum 2.0
By implementing these changes, Ethereum 2.0 aims to address current limitations, such as slow transaction times and high fees. It allows for a more energy-efficient system while supporting a greater number of decentralized applications (dApps).
Current Status
As of now, Ethereum 2.0 is being rolled out in multiple phases, with Phase 0 having launched in December 2020. Subsequent phases are expected to follow, ultimately leading to a fully operational upgrade.