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HomeCrypto NewsMarketEthereum 2.0 Is Launching On Dec 1-What Will Be The Changes To Ethereum Network?

Ethereum 2.0 Is Launching On Dec 1-What Will Be The Changes To Ethereum Network?

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Mark Brennan

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What is Ethereum
What is Ethereum

The number two cryptocurrency, Ethereum (ETH), is about to be upgraded to Ethereum 2.0. The question is what Ethereum 2.0 is going to change for Ethereum? We have listed the most important changes below.

It is a long-term plan to enhance the security, programmability, and scalability of the Ethereum network, without any effects on decentralization. Under what Vitalik Butirin calls a “rollup-centric Ethereum,” Ethereum will soon be capable to perform around 3,000 transactions per second with just rollups, without Eth2, and up to 100,000 transactions per second once Ethereum 2.0 enters Phase 1, using sharding.

Improve Scalability
Ethereum gas fees increases very high, when the blockchain is used by many users, sometimes exceeding 450 Gwei, it is clear that improvements in scalability are needed. The upcoming enhancements will not only significantly lower the barrier to entry into the  unaffordable smart contracts, but will also provide a whole new set of opportunities for developers to combine Ethereum’s composable “money legos” in ways that were previously impossible.

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Improve security
Another important feature of Ethereum 2.0 is the enhanced security. Proof of Stake gives separate security guarantees than Proof of Work. For example, if someone has the resources to perform a 51% attack on a PoW network, they can perform these attacks continuously even after performing soft forks. Under PoS, validators are not only rewarded for dealing fairly, but also punished for attempting to defraud the network.

One of those punishments in Eth2 is called a “slashing”. Slashing occurs when a validator is caught doing destructive actions. When this happens, the validator is forced to leave, confiscating some or all of his financial commitment. The outcome is that an attacker cannot hit the chain without bearing a loss.

In addition, the Ethereum Foundation is building a dedicated security team for Ethereum 2.0 to ensure the robustness and security of the upcoming upgrade. This security effort is a addition to the special Eth2 audit by Least Authority and many others.

More decentralized
Not only will it be more difficult to attack the network thanks to deterrent measures such as slashing, but the network will also have the potential to become more decentralized. While most PoS chains have a small number of validators, Ethereum 2.0 is activated with at least 16,384 validators staking their Ether. Additionally, PoW mining pools exist mainly to make the revenue streams more consistent, but since this isn’t an issue under PoS, we’re less likely to end up with a handful of pools controlling most of the network.

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With this update, Eth2 clients will ensure that the full benefits of Ethereum can be enjoyed on a wide range of devices, including devices such as older cell phones, not high-performing PCs or smartphones.

Let us know your view in comments.

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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Author

Mark Brennan
Mark Brennanhttps://thecryptobasic.com/
Mark Brennan has been active in the cryptocurrency sector since 2014. His love and passion for the nascent industry drove him to develop interest in writing about important developments and updates about cryptocurrencies and blockchain. Brennan, who holds a Masters degree in Business Administration, learned about the potential of blockchain technology. Aside from crypto journalism, Brennan runs an education center, where he educates people about the asset class.

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