All about Ethereum 2.0? (It coming soon)
Ethereum 2.0 is a widely used term that usually represents Ethereum's long-awaited transition from Proof-of-Work to Proof-of-Stake, which promises the disappearance of Ethereum mining.
What Ethereum 2.0 will change for the NFT area?
It will only bring good things to the world of NFTs, especially in terms of speed and transaction costs.
Previously, to mint an NFT on Ethereum, it took "time" (on a human scale it is fast but not for a machine) and it was very expensive which discouraged many.
We will now be able to mint and sell our NFTs at much more attractive prices for our future customers and thus make this web3 world explode even more.
The goal will remain the same, build a community of many followers on Twitter, bring them to your Discord and turn them into online members then convert them to your project! 🚀
But what's Ethereum 2.0?
Ethereum 2.0 is a long-awaited update to the Ethereum (ETH) network that promises significant improvements to the functionality and operation of the network as a whole. To address Ethereum's scalability issues, Ethereum creator Vitalik Buterin and the Ethereum team have scheduled a network upgrade called Ethereum 2.0 or Eth2.
Ethereum 2.0, also known as Eth2 and Serenity, is the first update to the existing Ethereum Classic blockchain, an existing Ethereum Classic blockchain designed to improve the speed, efficiency, and scalability of Ethereum networks while improving security and enhancing network resilience.
A POS consensus:
Ethereum 2.0 is a significant upgrade of the network consisting of sequential steps culminating in the transition from the Proof-of-Work consensus mechanism to the Proof-of-Stake Proof-of-Work consensus mechanism, which will make the network more scalable, secure, and resilient.
In Ethereum 2, the Ethereum blockchain network will be upgraded to a proof-of-stake blockchain and introduce a chain of beacons and shard chains.
As part of the transition to Ethereum 2 and Proof-of-Stake, there will be a one-way bridge for ETH holders to move their tokens to the beacon chain, ETH holding their tokens. When the merger occurs, mining of Ethereum tokens will officially cease, and staking will become the main way to create new tokens.
With Ethereum 2.0, staking is king:
Removal would render traditional mining systems obsolete, and if miners wanted to validate transactions for wholesale rewards and transaction fees, they would have to turn to staking. Phase 0 staking is backed by smart contracts on the traditional Ethereum network, so ETH cannot be withdrawn until the current chain becomes a shard in Ethereum 2.
If you don't want to stake but just want to hold ETH tokens or use them for other applications you can wait for phase 1.5, after which the old Ethereum blockchain will merge with Ethereum 2. If you send their tokens to the Ethereum 2 deposit protocol to start staking on the Ethereum 2 main chain, they will be locked until phase 1.5 transitions to Ethereum 2.
Netizens stake a portion of their ether to be able to approve new transactions. Proof of Work (PoW) is how Ethereum (and many other blockchains) keep the network secure and up-to-date by rewarding miners who create and validate blocks on the blockchain. For example, when DApp developers take advantage of the Ethereum proof-of-stake feature, other blockchain networks are sure to take notice. The sharded network will also be able to work with smart contracts, allowing developers of Dapps and other technologies to seamlessly integrate with Ethereum 2.0.
We're going to reduce gas costs! (finally)
Ethereum 2.0 will include sharding to significantly increase network bandwidth and reduce gas costs, thereby reducing the cost of sending ether, tokens and interacting with smart contracts. Sharding will eventually allow regular users to use Ethereum on their personal devices, increasing the number of network participants and making the Ethereum network more decentralized as more users become available. As the adoption of cryptocurrencies and NFTs, Dapps, and NFT smart contracts continues to grow, the scalability of the Ethereum 2.0 network is bound to attract more users, making Ethereum the service of choice. This is a massive upgrade to an existing network to a more scalable network that could accelerate the adoption of blockchain in the mainstream.
More speed! 💨
The upgrade will reduce power consumption, increase the speed and number of possible transactions, and ensure the security and decentralization of the Ethereum blockchain network. Ethereum 2 is introducing a number of architectural changes that aim to introduce a number of improvements to Ethereum that help :
- reduce the energy required to run the Ethereum 2 main chain
- increase scalability and transaction throughput
- increase resistance to network attacks. Ethereum's multi-stage upgrade, including Beacon Chain, Merge, and Shard Chains, aims to improve the scalability and security of Ethereum networks by making several changes to the infrastructure.
Breakthrough is exactly what the Ethereum developers hope to achieve with their next update to the underlying blockchain, which they call Ethereum 2.0 the underlying blockchain.
To start addressing this issue, Ethereum 2.0 will switch its blockchain to a more efficient proof-of-stake system. In the current state of Ethereum, users pay ridiculously high gas fees, experience long transaction verification times, and consume a decent amount of power in the process.
The more popular the Ethereum crypto network becomes, the more computational work is required to verify the blockchain, which causes network nodes to consume more electricity. Instead, the Ethereum crypto network will use a proof algorithm that requires validator nodes to risk (or “stake”) a certain amount of Ether cryptocurrency in order to validate blocks on the blockchain.
Ethereum is currently limited in the number of transactions per second it can process. Users of the existing Ethereum Classic blockchain have identified bottlenecks and still need to increase the number of possible transactions per second. The Ethereum Virtual Machine was running much slower than expected due to many transactions happening at the same time. The support also causes a lot of latency and network congestion, which doesn't happen with Ethereum 2.0.