Since its independent online launch, Ethereum has begun to use the same proof-of-work mechanism as Bitcoin. However, in the past few years, Ethereum developers have been actively preparing for the transition from the network to proof-of-stake, using network validators to replace it. Miners, thereby greatly reducing the energy consumption of the network.
More importantly, the proof-of-stake network can make a qualitative leap in the performance of the Ethereum network and eradicate the high gas fee of Ethereum. After switching to proof of equity, users of the Ethereum 2.0 blockchain will help maintain the network and earn block revenue by locking the amount of ETH, not the amount of computing power contributed.
The proof-of-stake network is part of a more ambitious Ethereum project-Ethereum 2.0. At present, there is no exact time for the completion of Ethereum 2.0 (probably in the second half of 2022), but the proof-of-stake network is expected to be put into use before the end of this year.
We are currently in the first phase of the Ethereum 2.0 development roadmap. The beacon chain used to coordinate block production and block rewards in the proof-of-stake network has been launched in December 2020. At present, Ethereum’s proof-of-work network and beacon chain (proof-of-stake network) are operating independently and in parallel. The next step in the roadmap is to merge the two networks together.
Danny Ryan, the lead developer of Ethereum 2.0, said that the entire team is making every effort to speed up development, and at the same time try to put some lower-priority functions into the next version, in order to complete a deliverable product as soon as possible.
Ethereum developer Kalinin proposed a proposal called “executable beacon chain” in order to reduce the development complexity in the original design. Kalinin has initiated a pull on the proposal on GitHub. Pull request, other developers are discussing the feasibility of the proposal.
“When releasing major functions, the best way is to release a basic version first, and then use this as a starting point to expand more functions, which will help manage risks,” Kalinin said.
Ethereum founder Vitalik Buterin also said, “Our first priority is to speed up the merger process. For this reason, we do not hesitate to give up many functions of the network, including the validator withdrawal mechanism.”
The validator withdrawal mechanism means that the validator retrieves the pledged tokens from the network. Delayed integration of this function makes the mandatory lock-up period of ETH pledged on the Ethereum 2.0 network extended by at least 3 months. At present, Ethereum 2.0 can only be pledged and cannot be redeemed. The specific time when the redemption function is opened depends on when the developer decides to add the function.
The Ethereum Foundation currently estimates that the merger will be completed by the end of 2021 (phase 1.5 of the roadmap), which is almost a year ahead of the 2022 planned in the previous roadmap.
However, for the prosperous Ethereum ecosystem, the faster the merger, the better. Starting in the second half of 2020, Decentralized Financial Applications (DeFi)-applications that provide financial service products such as lending, trading, and derivatives without the need for intermediaries, have evolved into a huge multi-billion dollar industry. Most DeFi applications are built on the Ethereum network. The popularity of the DeFi protocol has greatly slowed the processing speed of transactions and caused transaction fees to soar to an unbearable level.
DeFi ecology on Ethereum
In the first half of 2021, another type of phenomenon-level product, NFT, appeared on Ethereum. These digital currencies, which represent collectibles and artworks, set off a new round of Ethereum transaction climax, and once again slowed down the network processing speed of Ethereum.
NFT on Ethereum
At the same time, Ethereum’s competitors Solana and Cardano and other blockchains are trying their best to attract Ethereum users and project teams who cannot tolerate high transaction fees.
For those who are looking forward to a faster and cheaper network, Ethereum’s proof of stake is still too slow.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/how-far-is-ethereum-from-proof-of-equity/
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