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ETH 2.0 The Future of Ethereum

ETH 2.0 is The Future of Ethereum. The single most important issue currently facing the Ethereum network is scalability. The Ethereum network supports hundreds of decentralized applications. So, this means it needs to process a high number of transactions per second. In a recent speed test, the network only managed 20 transactions per second. By comparison, Visa’s maximum capacity is close to 24,000.

A longer term issue is the sustainability of Proof of Work (PoW) and mining. Because each transaction on the Ethereum network uses about 30 kWh (Kilowatt hours). Furthermore, the electricity used by Ethereum mines could power over 650,000 American households every year.

Ethereum 2.0 or Serenity, is a term used to describe a series of potential updates to Ethereum. For lack of better terms, to make it faster and better.

 

Proof-of-Stake (PoS)

 Solutions like Beacon and Casper refer to switching how Ethereum is mined. PoS requires users to stake ETH for the right to vote which replaces computational work found in PoW.

 

Sharding

Sharding is splitting a large database into smaller more manageable parts. The goal of Sharding is to make Ethereum more scalable. So it can process more transactions.

eWASM

eWASM allows code to execute faster. It expands coding options and capabilities for the Ethereum Virtual Machine (EVM).

 

Plasma

Plasma is an extra layer that sits on top of the network that can handle massive amounts of transactions. It is the Ethereum version of Bitcoin’s Lightning Network.

 

Implementation

The updates will be rolled out in successive stages on a parallel chain.

  1. Phase 0 is a beacon chain PoS system. It will not support dApps or smart contracts. 
  2. Phase 1 will introduce shards and support dApp data only.
  3. Phase 2 will be fully sharded and support smart contract execution.  

It appears Phase 0 is in its final stages of development. However, it is still unclear when the network will go live. The vision of an optimal decentralized computer is exciting but there are some risk factors to consider. In essence ETH 2.0 is a complete overhaul from its previous version. Only time will tell whether these new features can function together correctly. Ethereum also has competitors including EOS and Tron; it is unclear which platform will take the lion’s share for both public and private blockchain utilities.

Ethereum 2.0 Calculator

EthereumPrice.org released a new tool to calculate Ethereum 2.0 staking rewards over 10 years. This calculator has a number of options for customization allowing to project various staking conditions. The key shift in Ethereum 2.0’s network will be from Proof-of-Work to Proof-of-Stake consensus.

This tool is fresh out of beta testing from a Brooklyn based Ethereum incubator “ConsenSys“. The tool calculates 10 years of Ethereum staked, ETH awarded each year, and cumulative ROI over time. The tool also allows users to choose from a number of Fiat currencies to display the value of their ETH stake including USD, EUR, GBP, JPY, among others.

You can test this tool out at the link below:

ETH 2 Calculator

Full credit owed to the articles below:

https://cryptocurrencyfacts.com/ethereum-2-0-explained/

https://medium.com/chainsafe-systems/ethereum-2-0-a-complete-guide-d46d8ac914ce#0500

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