Ethereum became the trending platform for all the thriving ecosystems around decentralized technology. Since its launch in the year 2015 by the programmer Vitalik Buterin, this open-source blockchain has always been the bastion for some revolutionary changes. These changes include a boom in the initial coin offering (ICO) in the year 2017, the Inception of crypto tokens and stablecoins, the Introduction of smart contracts as well as Decentralised applications (dapps) which gave rise to Decentralized Autonomous organizations (DAOs) and decentralized finances (Defis).
As time passes the Ethereum 1.0 has lost its shimmer with continuously facing the issues related to scaling that happens due to Ethereum’s uneven growth, which further gives rise to congestion in the network followed by the spike in the GAS fees.
After the toppling of Ethereum 1.0(ETH) from its benchmark, the talk about this network’s existence came into the limelight which gave birth to Ethereum 2.0, which no one can deny is a need of an hour. Ethereum 2.0 or serenity is a multi-phase upgrade package of Ethereum 1.0 which ensures sustainability, scalability and security.
In this era of advancing decentralized technology, Ethereum 2.0 is the next-levelpost-mergepost-merge thing. Shifting from proof of work (Pow) to proof of stake (Pos), to optimizing the energy needs in the network these upgrades have left no stone unturned to demystify the issues faced by Ethereum 1.0.
“The goal of Proof of Stake is the be the most efficient way to keep a public blockchain validated, not to maximize rewards for a specific use case.” — Vitalik Buterin
Phases of Ethereum 2.0
Serenity Phase and the POS framework (Phase 0)
This upgrade went live on December 20, 2020, however, the presence will be noticed when all the phases will be aligned. This Phase 0 is the foundation of the beacon chain which also acts as the primary settlement layer for the upcoming shard chain. The main technological implementation includes the PoS consensus mechanism (dubbed Casper) and validator nodes.
Sharding Framework (Phase-1)
This stage is known to be phase 1.0 which includes the implementation of sharding solutions and roll-ups. The former involves breaking the Ethereum network (64 shards ), which will enhance the capacity and speed of transactions. At the same time, the latter consists of the bunching up of transactions together before the confirmation of the main chain. Only after the completion of sharding, it will run a smooth finality of the transaction serving the beacon chain as the base layer.
The improved speed of transaction and the capacity will also improve the energy usage by the network which according to researcher carl beek will be greater than ~99.95% reduction in energy use post-merge.
Merging of two protocols (Phase 2)
After completing the voyage from upgrading to the beacon chain to implementing the sharding framework now is time to dock which means merging the two Ethereum protocols, Ethereum 1.0 will be docked with a beacon chain supporting the architecture of shard chains.
Here comes phase 1.5 into the picture which bridges the gap between the two environments( ETH 1.0and ETH 2.0).
The beacon chain at this stage will coordinate and manage validators and their responsibility with various shard chains.
Namely advantages of phase 2 over phase 1
- Phase 2.0 will initiate the native dapps development and shardpost-mergepost-merge interoperability.
- Unlike phase 1, Phase 2 will provide shard with an opportunity to handle transactions and smart contracts.
- Until now Solidity programming language is only supported by Ethereum’s smart contract but after phase 2 of serenity, they can be written in any programing language.
Beacon chain induction in December 2020 was the beginning of Ethereum 2.0 and the project going to complete tentatively by the year 2023, but whatever development took around the Ethereum is unprecedented and innovative. When all is said and done, Ethereum 2.0 will come out to be revolutionary in the decentralised technology which will pave the way for it to become a global supercomputer.
Author –Kratikesh Mishra
[Write about web 3.0, blockchain and NFTs]
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Ethereum- 2.0 Bigger, Better, Faster, Stronger was originally published in DataDrivenInvestor on Medium, where people are continuing the conversation by highlighting and responding to this story.