Differences Between Ethereum and Ethereum 2.0
Ethereum, launched in 2015, is a decentralized platform that enables developers to build and deploy smart contracts and decentralized applications (dApps). However, it operates on a Proof of Work (PoW) consensus mechanism, which can lead to scalability issues and high energy consumption. Ethereum 2.0, also known as ETH 2.0 or Serenity, introduces significant changes to address these limitations.
1. Consensus Mechanism
Ethereum 2.0 transitions from PoW to Proof of Stake (PoS). In PoS, validators are chosen to create new blocks based on the number of coins they hold and are willing to "stake" as collateral, drastically reducing energy consumption and enhancing transaction speed.
2. Scalability Improvements
Ethereum 2.0 incorporates shard chains, allowing transactions to be processed in parallel rather than sequentially. This scalability solution is aimed at increasing the network's transaction throughput, making it more efficient for users and developers alike.
3. Security Enhancements
The PoS mechanism in Ethereum 2.0 not only promotes decentralization but also provides better security against attacks. Validators are incentivized to act honestly, as malicious activities can lead to the loss of their staked assets.
4. Transition Phases
Ethereum 2.0 is being launched in phases, starting with the Beacon Chain, which establishes the PoS network. Future phases will introduce shard chains and the full integration of the new system. This gradual transition helps ensure stability and security throughout the upgrade process.