What does the emergence of Ether 2.0 really mean?

After the official release of Ether 2.0, it is likely that there will be some business applications around Ether 2.

As of June 27, the number of pledged Ether 2.0 contract addresses is about to reach 6 million ETH, which is a volume breakthrough for Ether 2.

According to CoinGecko data, the current total number of ETH is around 116 million, and the number of ETH2.0 pledges occupies about 5% of the total, with an annual interest rate of 6.4%.

However, when it comes to the shift of Ether from PoW to PoS and what kind of breakthrough from 1.0 to 2.0? I feel it is important to mention what happened last November.

At the beginning of November 2020, Ether 2.0 pledge was launched with the rule that it needs to have at least 16,384 verifier deposits (32 ETH per verifier, total 524,299 ETH) 7 days before December 1 (i.e. November 24). Ether 2.0 blocks will then trigger Genesis 7 days after this threshold is reached (whenever that may be).

However, the progress has been very slow, which shows the “determination” of people who do not want to give up the graphics card mining, but with the scheduled release of blocks and the arrival of the bull market explosion in the first few months of the first half of this year, more and more people found that the price of Ether rose while the Gas fee became very expensive, resulting in a reduction in the number of transactions, so EIP-1559, Layer 2 and other solutions began to become the focus of people’s attention.

What does the emergence of Ether 2.0 really mean?

But for the Bitcoin mining clearout is what really opened people’s eyes to the important reasons for Ether’s shift from PoW to PoS:.

  1. excessive energy consumption, not in line with the concept of carbon neutrality, with some large mining pools occupying more computing power.

2, the original throughput will cause slow block packing and high Gas fees when the transaction is congested.

  1. Blockchain has developed to the point that it needs to realize large-scale commercialization, and the original Ethernet PoW out of blocks can no longer meet it.
What does the emergence of Ether 2.0 really mean?

Since November last year, there has been a long way to go on the Ether 2.0 upgrade, with obstacles but also continued progress, yet nothing is more important for the public to know than what it can do for individuals.

The widely circulated ETH2.0 roadmap maps out three components to be implemented in sequential order.

Phase 0: a beacon chain with PoS as the consensus mechanism

Phase 1: Multiple sharded chains

Phase 2: Adding execution to all fractions

V-God has previously stated that in the next 1-2 years, the planned issuance of ETH is about 4.7 million pieces per year, and once PoS is fully landed, the number of destroyed pieces will be subtracted each year, which is roughly about 2 million pieces per year.

And the transformation of ETH from 1.0 to 2.0 provides more scalability for the whole blockchain world. PoW mining adopts a system similar to workers’ labor-based distribution, which was mainly applied in the 20th century, and there was no problem for any country or any entity to adopt this model, but with the continuous improvement of living standards, that is, people were not satisfied with the form of tokens obtained by miners only, so then came the concept of DeFi, NFT, Metaserve and other more innovative ways to play.

PoS is the most viable way at this stage because it generates a proportional equity distribution model, which happens to be the most important breakthrough in corporate management in the shift from the 20th century to the 21st century, so it has become the one that everyone is competing to pick up. But, as is the problem facing companies now, it allows the majority shareholder to become overly decisive, but with the benefit of increasing productivity.

What does the emergence of Ether 2.0 really mean?

ETH 2.0 emphasizes the sharding model to solve today’s problem of high GAS fees as prices rise and will allow ETH 2.0 to better carry high throughput and greatly enhance the user experience.

The main upcoming roadmaps for Ether are also currently

3Q 2021 (July to September)

July – London Upgrade – Eth1 upgrade to incorporate EIP-1559 and Ice Age latency

July – Optimism public mainline launch

August – zkSync 2.0 mainnet release. Achieves zk rollup of 20,000 transactions per second.

Eth1/Eth2 merged product tested.

Optimsim enables fast withdrawals via MakerDao

StarkNet star cluster phase release, zk rollup for multiple apps

Argent implements Layer 2 scaling with zk rollup

Q4 2021 (October to December)

Shanghai upgrade – possible Eth1/Eth2 merge

StarkNet universe phase release. Decentralized zk rollup.

Q1 2022 (January to March)

Ether upgrade to enable verifier withdrawals / post-merge cleanup.

What does the emergence of Ether 2.0 really mean?

Through the above, we can see that it will take some time to realize Ether 2.0, during which Ether will also have several upgrades of different degrees, among which Shanghai upgrade will occupy a larger proportion. The merger of ETH1 and ETH2 will bring new breakthroughs in technology, and at the same time, after the official release of Ether 2.0, it is probable that some commercial applications around Ether 2 will appear.

At the same time, it will take some time to deal with the closing work about ETH1 after the release, so let’s look forward to the blockchain and also the coming of Ether 2.0 era together!

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-does-the-emergence-of-ether-2-0-really-mean/
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.

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