Ethereum is a blockchain platform that users can build decentralized applications on top of. However, for several reasons, any system(be it a simple application or network) must be updated continuously. If a system remains static and does not keep up with the times, it becomes outdated very quickly and ceases to be helpful.
Since crypto is in its infancy, its technological prowess is changing and increasing daily; the market is shaping up to the wants and needs of both retailers and institutions. ETH 2.0 is a scalable and more ecological solution than the previous version and could be the single most significant event in crypto history.
Ethereum has been widely adopted by developers keen on creating better-decentralized apps (Dapps), but it has its limitations in terms of speed and scalability. That’s why the team behind Ethereum is working on a new update called “Ethereum 2.0,” which will tackle those issues head-on and make the network faster, cheaper, and more scalable than ever before. Read on to find out more about this update.
What is Ethereum?
Ethereum is a blockchain platform that users can build decentralized applications on top of. The network enables developers to create smart contracts that can be programmed to handle the interactions between individuals in a given network. All transactions on the Ethereum blockchain are conducted with Ether, Ethereum’s native token.
As mentioned, blockchain networks are immutable and decentralized, two essential features for any given network. However, as the Ethereum network has grown, it has become clear that scalability (i.e., the ability to grow and serve more users) and speed are issues that need to be addressed. That’s where Ethereum 2.0 comes in. It’s a new iteration of the Ethereum blockchain that promises to scale the network to meet demand, provide greater security, and process transactions much more quickly.
ETH2.0: what will change?
To start off, Ethereum 2.0 will rely on a new consensus mechanism to reach its desired state. It will also have a new Virtual Machine that will process transactions much faster than the current model.
Additionally, the update will include a new mining protocol to verify transactions more quickly. The network will also be significantly cheaper — and cheaper transactions lead to greater adoption. Finally, Ethereum 2.0 will be more scalable than the previous iteration, which is a necessary improvement given the sheer number of individuals who use it. Read More...
