What exactly is Eth2 or what we know as ethereum 2.0? Check out the full review in the video below!
What is Ethereum?
Ethereum (ETH) is a blockchain platform that has a smart contract function. Ethereum has a function like a virtual machine that allows running smart contracts on a peer-to-peer basis with cryptographic money Ether (ETH).
Ethereum’s first block was encountered on July 30, 2015. At that time, Vitalik Butterin was 19 years old.
For the previous two years, Vitalik Buterin was the one who popularized Bitcoin by being the author and owner of Bitcoin Magazine. Later, he continued to develop Ethereum.
What is Ethereum 2.0?
Ethereum 2.0, also called Eth2 is the next upgrade to the Ethereum blockchain. Ethereum 2.0 will be released in several “Phases” starting in 2020 with Phase 0. Each phase will improve the functionality and performance of Ethereum in a different way.
What is the difference between Ethereum 1.0 and Ethereum 2.0?
There are two major improvements introduced by Ethereum 2.0 or Eth2 that are not present in Ethereum 1.0: Proof of Stake and Shard Chains.
Proof of Stake: Currently, Ethereum 1.0 runs on a consensus mechanism known as Proof of Work (PoW). PoW collects physical computing power (miners) and electricity (work) to build blocks on the blockchain.
Proof of Stake (PoS) is an upgrade that enables increased security, scalability, and energy efficiency. Instead of collecting physical and electrical miners, PoS collects validators (virtual miners) and Ether deposits.
When Will Ethereum 2.0 Launch?
Phase 0 of Ethereum 2.0 will launch in 2020. Phase 1 is anticipated in 2021. Phase 2 onwards is anticipated for 2021 or later.
How to Get Ethereum 2.0?
There are two ways ETH holders can participate and get rewarded for Ethereum 2.0 stakes. First, ETH holders can run their own validators by staking ETH in multiples of 32 on the network. Running your own validator node means that you have the responsibility to validate and manage blocks.
Another option for ETH holders is staking their rewards through a staking provider or joining a staking pool with a smaller amount of ETH, where anyone can stake the small amount of ETH they can afford and still receive a reward commensurate with their contribution.