Ethereum will evolve into Ethereum 2.0 by the end of 2020. So, what are the changes and advantages of Ethereum 2.0? Why is this thing awaited by blockchain activists?
The Evolution of Ethereum 2.0 Becomes Important History
Ethereum is one of the most popular crypto assets after bitcoin. According to Indodax CTO William Sutanto, the evolution of Ethereum to Ethereum 2.0 is an important history. Not only for cryptocurrency and blockchain but these changes are important for the financial world.
What is the reason? The crypto assets created by Vitalik Buterin are a forum for networking on almost all Decentralized Finance or DeFi platforms. With Ethereum 2.0’s ERC-20 network, there are lots of DeFi platforms in it, one of which is Tadpole Finance.
DeFi is one of the future financial systems that will allow people to pledge crypto assets to get loans in the form of crypto assets in a decentralized application (Dapps). This is what is the advantage of Ethereum 2.0.
Changing from Ethereum to Ethereum 2.0 will certainly boost many DeFi platforms. This is why the launch of Ethereum 2.0 is so important in history.
Why Should Ethereum Evolve?
Ethereum is changing its network to be wider so there will be more DeFi platforms. So that the advantages of Ethereum 2.0 will be more efficient and cheaper.
So far, there have been several problems on the Ethereum network, such as bugs and high gas fees. Other constraints such as being able to only support about 30 transactions per second so that it often experiences overload which results in delays or congestion.
To that end, Ethereum 2.0 is here to make network scalability better. Another advantage of Ethereum 2.0 is that it supports up to 100,000 transactions per second so there will be no overload.
Ethereum 2.0 Uses PoS Not PoW Scheme
Before changing to Ethereum 2.0, Ethereum still used the concept of mining or mining. This concept is commonly called Proof of Work (PoW).
With the PoW system, miners or miners require high costs. This is because they use the hardware (hardware) with the highest specifications which consumes a lot of electricity.
Unlike the previous generation, Ethereum 2.0 no longer uses the PoW system. The system used is a proof of ownership (PoS) mechanism.
The PoS system on Ethereum 2.0 (PoS) uses a transaction validator that stakes crypto for the right to verify transactions. These validators are chosen to propose blocks based on how much crypto they own, and how long they have held it.
Other validators can then prove they have seen a block. If there are sufficient validations, blocks can be added to the blockchain. The validator is then rewarded for the successful block proposition. This process is known as “forging” or “printing”.
Conclusion
Ethereum 2.0 is an upgrade to the Ethereum blockchain. This update aims to increase the speed, efficiency and scalability of the Ethereum network so that it can process more transactions and reduce congestion.
Ethereum 2.0 uses the PoS system. The advantage of Ethereum 2.0 with the PoS system is that it is much more energy efficient than PoW. This is because it separates energy-intensive computer processing from consensus algorithms.
Usually, moments like this will increase the price of a coin or crypto asset, you know. So, it is possible, the price of Ether (ETH) will increase at the launch of Ethereum 2.0 later.
Have you prepared your money to buy ETH?
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