Ethereum 2.0 And How It Can Change A Lot

Blockchain technology contributed a lot in transforming the global markets. The technology has disrupted several fields, such as healthcare, agriculture, fintech, and so on.

Did you know 7,000+ cryptocurrencies are there as of now? Coming to Ethereum, it is the second largest cryptocurrency. Recently there was much buzz about the better version of it Ethereum 2.0 , lets know about it.

Ethereum 2.0: In A Nutshell

When Ethereum 2.0 is compared with its predecessor, the Ethereum 2.0 comes with a few basic changes in terms of design and structure. Among other changes, two key changes are “sharding” and “proof of stake.”

Features of Ethereum 2.0

Proof of Stake:

Validators/Stakers help to safeguard Ethereum for everyone and achieve new Ether (ETH) in the process. This is termed as “proof-of-stake.” The Beacon Chain has introduced proof-of-stake.

Sharding:

Such validators are shuffled between shards on a daily basis. It helps to eliminate any sort of manipulation. Moreover, the Beacon Chain contributes to the coordination as well as communication of the shards.

Work Structure of Ethereum

Every validator features two keys. One is a signing key and the other is a withdrawal key. When it comes to a signing key, it contributes to performing “work for the blockchain.”

A validator performs three key functions. It is:

  • To confirm the validity of the shard chain shard and beacon chain
  • To suggest and include blocks in one of the shard chains and in the Beacon Chain
  • To report the malicious conduct by other validators

For all the above reasons, the signing key needs to be online round the clock.

Ethereum 2.0: The Future

Phase 0 was already rolled out in December 2020 upon the execution of the Beacon Chain. The phase keeps the library of validators.

Moreover, it also makes use of the proof of work consensus mechanism. Phase 1 is expected to be introduced in 2021. Furthermore, the integration of the shard chains will occur. 64 shards are anticipated to be introduced in this regard.

When Phase 2 will roll out, the shards will be 100% functional and suitable for smart contracts. Phase 2 is anticipated to be launched in 2021/22. It is going to be an upgraded version due to the additional features.

Wrapping Up

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