What is Ethereum 2.0?
The first stage of the next-generation proof-of-stake (PoS) Ethereum 2.0 (Eth 2.0) has been launched on December 1, 2020. The launch was welcomed by the decentralized finance community.
- Ethereum 2.0 is a generalized blockchain to decentralize the computer-based applications including from iPhone games to government bonds.
- The system was under construction since beginning of the current proof-of-work (PoW) network in the year 2015.
- PoS is aimed at providing a more energy-efficient method to secure the network by locking Ether (ETH) into a staking contract. It does not solve the cryptographic puzzles using computing power.
- The launch of the Beacon Chain leads to the more scalable, secure and sustainable home for the foundation of Ethereum.
- The Beacon Chain is the backbone of a new Ethereum blockchain.
- It is a network that keep pace with PayPal (PYPL) and Visa (V) in terms of processing speed.
- It also provides transparency and payment finality.
Challenges with the Eth 2.0
Eth 2.0 has two technical challenges:
- To dynamically break the PoS Ethereum blockchain into multiple datasets called “shards”
- To adopting the Rollups which is a throughput solution for decentralized applications (dapps).
Function of Eh 2.0
- Eth 2.0 help in “storing and managing the registry of validators,”
- Eth 2.0 can not be used for paying the electric bill until 2022.
Ethereum has been created by Russo-Canadian developer Vitalik Buterin. He also founded the Bitcoin Magazine. He is the member of multiple early alternative currency projects like Mastercoin. The Ethereum was first announced in the year 2013 at a Bitcoin conference in Miami.