What is Ethereum 2.0?
Ethereum 2.0 is an upgrade to Ethereum’s existing platform, if you would like to know more about Ethereum, visit our in-depth guide here.
The Ethereum 2.0 upgrade has been named Serenity, it is designed to provide Ethereum with the security and scalability that it greatly needs to succeed in the future world of crypto.
What Will Change?
Proof of Stake
As it stands, Ethereum runs on a proof of work mechanism, this mechanism much like Bitcoin’s relies on miners to operate. Instead of needing physical human miners using their mining rigs which the current proof of work system does, proof of stake uses computerised/virtual miners. Proof of stake gives Ethereum increased scalability, safety and also it is more energy efficient
Shard Chains also improve the capacity of Ethereum and increase its ability to scale. Ethereum’s current blockchain processes transactions in consecutive blocks, this involves individual nodes verifying the data one by one; which despite being incredibly sophisticated can take some time. Shard chains no longer make transactions consecutively on the blockchain, instead they split tasks amongst different sets of nodes and run them in parallel with each other.
These two improvements could ultimately see Ethereum take the number one spot in terms of rank in the years to come.
If you like the look of Ethereum 2.0 and would like to invest in Ethereum, head over to the Best Ethereum Exchanges page.