Saturday, January 16, 2021
Home Crypto News Market Ethereum 2.0 Is Launching On Dec 1-What Will Be The Changes To...

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

- Advertisement -

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.

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.

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.

Read More:

Mark Brennan
Mark Brennanhttps://thecryptobasic.com/
Mark is 27, holds a Master in Business Administration degree and works as a content Creator at TheCryptoBasic mostly on Crypto Market Updates. Since 2014 he has been active in the crypto sector. Thanks to the Business College in which other than Business subjects, he was taught about the disruptive potential of Blockchain. His interests include Blockchain technology and Crypto Market innovations. He also founded a small startup in which he gives lectures on cryptocurrencies.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Recent News & Articles

Reasons Behind Chainlink (LINK) Price Making New All Time High

Chainlink (LINK) price achieved new highs increasing over $20 touching 22 USD. The price of LINK has risen by close to 30% in the...

SIMBA Chain Got A $1.5 Million Contract From The U.S. Office Of Naval Research To Develop Blockchain-Based Solution For Critical Military Weaponry Parts

SIMBA Chain, a blockchain-based company, has been received a contract of $1.5 million to create a system for predicting demand for critical parts of...

Another Cryptocurrency Exchange Backed XRP: “We Will Continue Listing XRP”

The U.S. financial authority, the SEC, has sued Ripple over the XRP sales. After the securities lawsuit, many popular cryptocurrency exchanges removed XRP from...

A Chinese Hospital Started Issuing Electronic Invoices On Blockchain Technology

The state hospital of Chengmai County in Hainan Province, which positions itself as the center of technology development in China, has released the first...

Kraken Allow Buying Of Monero With A Debit Or Credit Card

The Monero team tweets that it is possible to buy Monero directly on the Kraken crypto exchange with debit or credit card. https://twitter.com/monero/status/1349452657166065664

Subscribe To Our Newsletter

Get Updated with All The latest Crypto News, Articles, Reviews, Analysis and much more. Delivered Every Monday.