Ethereum 2.0 is an upgrade to the Ethereum network. It improves the speed, efficiency and scalability of the network while maintaining security and decentralization. The upgrade is very important to Ethereum, and this will include three main stages:
- Phase 0-Deploy and mortgage on the beacon chain.
- The first stage-sharding framework
- Phase 2-The merger between the beacon chain and the main network.
The key changes brought to the network by ETH 2.0 are:
- Sharding-Ethereum will be divided into 18 “shards” running simultaneously. This will greatly improve efficiency.
- Staking-a thorough reform of the consensus protocol from proof of work to proof of equity.
Ethereum’s current limits
Ethereum currently uses Proof of Work (“PoW”) consensus. The motivation of Ethereum 2.0 stems from the limitations of the current network.
High operating cost
The economic problem with proof of work is the high barriers to entry. In fact, the initial cost of the hardware required to profitably mine Ethereum is high unless the electricity costs for users to join the mining pool.
High energy consumption
It is estimated that Ethereum uses 57.01 TWh per year (at the time of writing), which is equivalent to Uzbekistan’s electricity consumption, making it environmentally unsustainable.
Higher start-up costs can also cause miners to join pools or economies of scale dominated by large miners. This leads to the centralization of miners, which offsets some of the security provided by the PoW system.
In addition, PoW is more difficult to scale because the processing power is limited by the sequential mining of each block, and the block size is limited. If the number of pending transactions exceeds the block size limit, any remaining transactions will be queued for the next block. The Ethereum network can currently only process about 15 transactions per second, which is too small considering the growing demand of the network.
High user cost
Network congestion caused by scalability issues greatly increases the cost of users’ transactions on the network.
Proof of stake process on Ethereum 2.0
Proof of rights replaces miners and electricity with verifiers and rights. Verifiers replace miners as individuals who maintain the state of the network. On Ethereum 2.0, validators need to submit 32 ETH as the legitimacy of their intention to the official deposit contract.
How PoS works on Ethereum
1. Blocks can be created in each time slot for 12 seconds.
2. The network randomly selects a verifier as the proposer for each time slot.
3. If the designated verifier misses the opportunity to propose a block, the network will have no block for that time slot and enter the next time slot.
4. During each time slot, verifiers will take turns submitting proofs (voting for the main chain).
5. Vote to determine the block of each period (a period is 6.4 minutes and consists of 32 time slots).
6. Each verifier submits their proof once in each epoch.
7. It is finally determined that at least 2 epochs (≈ 12.8 minutes) are required.
8. Verifiers will also monitor each other for malicious behavior.
9. If they observe that another validator proposes two blocks in the same time slot or submits a proof vote that contradicts themselves, they can alert the network.
10. The network will reward whistleblowers and punish violators.
11. Rewards, punishments and cuts will be dealt with in each period. Inflation rewards are when validators receive ETH for their work. Submitting the proof correctly and including other validator proofs when proposing a block will generate a pledge reward of 2% to 22%, depending on the amount of pledge of the entire network.
12. If validators fail to stay online and execute their share of computational responsibility, their block rewards will be moderately reduced (67K Gwei per epoch when they are offline) to incentivize validators to stay online as much as possible. The penalty amount is deliberately set low so that honest verifiers with low connectivity can still receive positive pledge rewards.
Advantages over PoW
More economically feasible
Unlike the PoW mechanism (Proof of Work), which requires investment in power hardware and expensive graphics cards, miners use electricity or other energy to consume physical energy (called hash power) to confirm. The cost for staking is lower, and validators seeking to redeem investments can withdraw their pledged ETH liquidity resources.
Network is more secure
On the PoS network, the economic punishment (strike) for malicious actors is stronger. In PoW, the economic risk of attack failure is equal to the cost of electricity and the borrowed computing power, while in PoS, the cost of launching an attack is equal to the amount of pledged ETH. If validators attempt to launch an attack to disrupt the network, the 32 ETH they pledged will be cut (removed and burned). Punishable crimes include proposing two blocks in the same location or submitting conflicting proof votes. In the event that a large amount of ETH is successfully attacked and stolen, the network will be compromised and the value of ETH may decrease, resulting in the attack being less financially successful. Once the validator is reduced, the validator will automatically be forced to withdraw from the active validator set after 8,192 periods (≈ 36 days). The validator will also reduce their ETH balance in each period until they withdraw from the active set. Verifiers that are trimmed will see their ETH balance reduced from 3% to 10%, depending on the mortgage rate and the number of verifiers trimmed in a similar time frame.
By requiring at least 16,384 active validator nodes (approximately 8,000 nodes existed before the start of the beacon chain), higher levels of decentralization also improve security.
Low barriers to participation
The company also provides staking services for customers who choose not to run their own validator nodes. As with mining pools, individuals who wish to pledge less than 32 ETH can join the pledge pool, where their funds are pooled with other people’s funds to reach the required 32 ETH. Their reward is proportional to their total contribution.
Reduce energy consumption
The password complexity required in Proof of Stake (PoS) is low because it does not rely on the cost of electricity and computing equipment to prevent potential attacks, but instead relies on direct economic incentives. Therefore, in the proof-of-stake network, the energy consumption of each transaction is significantly reduced. According to the research of the ETH R&D team, energy consumption has been reduced by nearly 99.9%
The increased scalability comes from a horizontal processing technique called sharding. Sharding is the process of splitting the database horizontally to distribute the load, and trying to solve the trilemma faced by the blockchain system:
In the current blockchain, the entire network must be verified by all participating nodes after each transaction, so the processing speed is limited by the speed of its slowest participant. This creates a bottleneck, increases transaction costs and requires more computing power and storage.
Through sharding, the network will decompose the verification of state and history into smaller parts (shards), and nodes focus on verifying a subset of the received data (shards) instead of the entire blockchain, eliminating the need to store the entire ether Blockchain. This parallel processing process optimizes the overall processing and storage capacity of the network, greatly increasing it. Anyone can run a node that can be fragmented, and the hardware requirements are lower than the requirements for running a full node, thereby increasing network participation. Sharding will continue to maintain the decentralization of the network.
As with the current system, there are still differences in the stringency of validators.
The stage of ETH2.0
Eth2 will be launched in phases, with phase 0 being launched on December 1, 2020.
- Phase 0 is to start the beacon chain, which will implement the PoS consensus mechanism.
- The beacon chain coordinates the registration of verifiers.
- With the launch of Phase 0, a new token, ETH2, appeared.
- Ethereum users will be able to convert to ETH2 at a ratio of 1:1 by burning the ETH registered contract in the current wallet.
- The user will get a withdrawal key and a validator key.
- You need to mortgage 32 ETH2 to become a validator on the beacon chain.
- ETH 2.0 has a period and users will not be able to withdraw it before the first phase.
- The beacon chain currently does not handle accounts, transactions, storage or smart contracts.
- It is currently an independent network, running in parallel with the current Ethereum system to ensure that data continuity will not be interrupted.
Eventually, the beacon chain will merge with the traditional Ethereum chain to become the main settlement layer of the Ethereum network and coordinate the sharding chain.
So how does the beacon chain consensus form?
At least 128 validators are required to prove each shard block, which is called a committee . Each shard block will be proposed and verified within a time frame called a slot . Each time the committee proposes and verifies 32 time slots-collectively referred to as an epoch -after the committee is disbanded, a new group of verifiers will be selected. This is done so that malicious verifiers cannot control the final result of the newly proposed block.
When the shard block proposal is sufficiently proven by the committee, it will share a crosslink with the beacon chain . This crosslink is a summary of the state of the shard, which includes new blocks and their transactions.
- The first phase will implement the shard chain controlled by the beacon chain.
- Before Phase 2, there will be no support for accounts or smart contracts.
- It is expected that Phase 1 will start with 64 shards first.
Ultimately, the side chain will perform its full function.
- A bridge is built between the two environments of the beacon chain and traditional Ethereum.
- The Ethereum 1.0 blockchain will be one of 64 shard chains, all of which will be run using the new Ethereum PoS protocol.
- The Ethereum 1.0 mainnet sharding will provide the history and current state of Ethereum to the beacon chain.
- In the meantime, dApps will hope to start building on the Beacon Chain.
- eWASM replaces EVM.
- eWASM will allow programmers to choose from a variety of languages to write code to run on the blockchain, thereby increasing the number of potential programmers in the ecosystem without having to learn the native Ethereum language.
Once ETH2.0 is launched, you will use the Ethereum network in the same way, but it will be faster, cheaper, and allow more possibilities on the blockchain. Anyone can become a validator and earn money by staking their ETH, while supporting the network by maintaining the stability and security of the network. This is a big step towards a better Ethereum, and it will also be a big step in the history of blockchain/cryptocurrency.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/what-are-the-key-changes-that-will-be-brought-about-after-the-eth-2-0-upgrade/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.