Ethereum 2.0

Ethereum 2.0 | Eth 2.0 Staking |

Ethereum 2.0: A revolution to secure the future of Ethereum

There is a burning topic nowadays that has grabbed the attention of all crypto investors. Are you also seeking an answer to the following question:

What is Ethereum 2.0?

If yes, then we are here with the answer to it.

It is an initiative taken by the developers with the aim to improve the efficiency of the ETH. It is an upgrade that was necessary to be made for ensuring a secure and remarkable future of Ethereum. It was expected that with the launch of ETH 2.0, the network will be able to experience great benefits. One of the amazing benefits of the shift from PoW to PoS is that it will result in bringing down the energy cost by 99.95%. The ETH2 release date was in the year 2022.

To know more, let’s move ahead in this read and have a brief assimilation of it.

The key lineaments of Ethereum 2.0

The prime attributes of a particular service or a product somewhere give an overview of the complete mechanism of that service. Thus, before diving into the vast ocean to build knowledge about this blockchain, it would be far better to first have a look at its key highlights. The discovered features of this blockchain are:

The introductory phases of the Ethereum 2.0

After having a cursory check at the cognizance and key features of this blockchain, it's now time to turn back the pages of history and gain knowledge of pathways or phases that are involved in its introductory stage.

As per the empirical research conducted to dig the information about its past, it has been discovered there are three stages in which this blockchain was launched. In this part of the read, we are going to shed light on each of the phases one by one.

So, get ready to walk through the complete journey of Ethereum 2.0

Phase 0: Introduction of Beacon chain

Launch of the Beacon chain- The first move in this journey. The roots of Ethereum 2.0 can be traced dates back in December 2020. The proof-of-stake was launched in the Ethereum ecosystem through this chain. Not only this, Consensus logic and block gossip protocol that now safeguards the ETH is also a blessing of the Beacon chain. The credit for introducing ETH 2.0 Staking and Shard chain also goes to the Beacon chain. And the launch of the Beacon chain brings several changes and the event of “The Merge” gave birth to the next phase.

Any idea of what the next phase is about?

If not, then step ahead in this journey.

Phase 1: The Merge- Unifying the blockchains

The event of “The Merge” also remember as the practice of merging the blockchains into one. This event took place on September 15, 2022. To end PoW and kick-start PoS involves a complete set of instructions to be given to the Beacon chain. The required instructions involved asking the Beacon chain to approve the transactions from the original blockchain, bundling them into blocks, and then managing them in a blockchain using a Consensus mechanism based PoS.

At this point, the clients stopped performing mining, block propagation, and Consensus logic and handed all the tasks to the Beacon chain. And with this, The Merge happened as it brought an end to multiple blockchains and there is only one PoS now i.e. the Ethereum chain.

Distributing the load with Sharding Chains in Phase 2

Till the time this phase came, the Beacon chain was already launched, and “The Merge” event also took place. And now comes the stage of Sharding. It refers to the process of splitting the load on the network in small blockchains and then distributing them so as to facilitate light-fastening transactions and that too by cutting down the transaction cost.

Is it possible to perform staking Ethereum on Coinbase?

Coinbase, being a centralized exchange dealing in cryptocurrencies allows the staking of ETH. Pooled staking helps in consolidating multiple validators into one pool with the prime objective of increasing the staking rewards. To stake ETH with Coinbase is quite simple and you can put them to work with a few clicks only.

In return for staking the assets, the investors are provided with staking rewards.

Ethereum 2.0: A Switch from Mining toward Staking

Earlier Mining activity was very much popular and is practiced by a large segment of investors. But, with the impact of the Beacon chain, staking came into existence and was found more effective than mining. However, understanding staking is not an uphill task if you already know what mining is.

One of the biggest differences between the both is that, in staking the investors need to lock their assets for a certain time and this is not so in the case of mining. In addition to this, Mining involves large up-front costs such as powerful hardware, energy consumption, and others.

Wrapping up!

With proof-of-stake ETH 2.0 is going to create history by bringing revolution in the world of crypto. The complete process of its launch comprises three phases that you have read in the above write up. The main goal behind launching this is to make improvements to the current working mechanism such as to add pace to the transactions, lower the transaction cost, and so on. However, the assumption relating to its performance is on the go, as the crypto market is highly volatile and to make a definite prediction is not possible.


Will ETH 2.0 make ETH worthless?

Calling spade a spade, an Ethereum upgrade will not make ETH worthless. It is expected that with the launch of ETH 2.0, both will be amalgamated into the two layers of the same blockchains. The ETH will act as an execution layer while ETH 2.0 will take the place of the Consensus layer.

Is ETH 2.0 a good investment?

With the Ethereum 2.0 release date, people have started making assumptions relating to whether it is going to be a good investment or not. However, there is no definite answer that can clearly reveal whether one should invest in ETH 2.0 or not. But, as per the majority of opinions, it is considered a worthy investment.

Is Ethereum 2.0 price prediction?

As we all know that the crypto market is highly volatile, and predicting the price of a particular asset is quite an uphill task. However, by the beginning of this year, it has been seen that ETH secured the position of being the second-largest cryptocurrency. Above all, it is predicted that ETH 2.0 is going to perform well in upcoming future.