After the launch of Ethereum, it has become one of the biggest and most expansive networks in the run of the blockchain. In this Bitcoin era, Ethereum has become a good competitor for Bitcoin. Ethereum is planning to launch a new upgrade, which is decided to be named as Ethereum 2.0. This upgrade has taken place to alert the users about problems such as the network getting crowded, high fees for gas and the network is expanding. It also has features that can repair the inner problems of the network.
Ethereum 2.0 is a major update towards the network, consisting of many stages that will result in the switch from evidence of work to confirmation of stake agreements, enabling the system to be more accessible, stable, and long-lasting. The upgrade that is being planned to be launched is not an immediate decision. For decades, the Ethereum group has discussed introducing the proof-of-stake method. Indeed, Ethereum is just now gaining traction with several of the existing proof-of-stake blockchain systems.
What are the Distinct Phases of Ethereum 2.0 Implementation?
The upgrade of Ethereum 2.0 is getting in action in the name of some phases. These phases have already started taking action in the year of 2020 and the end will take place in 2022.
- Phase 0 – This phase first started the chain of beacons in the blockchain network. The main goal of Phase 0 was just to keep a track of the verifiers that were responsible for creating transactions on the Ethereum 2.0 blockchain. This phase has also helped in creating new structures for the upcoming phases.
- Phase 1 – This phase is mainly focused on the better use of split up networks and perfectly performs transaction executions outside the main Ethereum chain. The split up networks are called shard chains in the system. Within the Ethereum network, this is the function, which allows transaction data to be divided across 64 blockchains. Because of the feature of shard chains, the functional burden will be less on the network and the network will run smoother. It has been decided that this phase should be released by the earliest of 2022.
- Phase 1.5 – The main function of this phase is to work as a blank space or a gap between the second and last phase. This phase also acts as a strong bridge for both of the versions of Ethereum. It is when two different ecosystems start to merge. The Ethereum 1.0 devices and information will be docked with the beacon channel, and the Ethereum 1.0 network will subsequently be among the 64 shard networks that have been created in phase 1. The start of phase 1.5 will mark the formal start of Ethereum 2.0, and its capabilities will have an immediate impact on the system. Phase 1.5 will begin in 2022, shortly following the path of phase 1.
- Phase 2 – The final phase will take place after the completion of the process of merging for Ethereum 2.0. It will enable network-wide cross-shard compatibility and local autonomous app innovation. This phase will also help the network in gaining the operation in handling transactions and smart contracts. This phase will become a proper influence on the network to transform it from a normal shard chain to a well-functioned main net.
The new upgrade of Ethereum 2.0 is a new start for the investors of the Ethereum blockchain. The change should definitely be considered as a positive one after knowing all the facts. This upgrade also has a new feature where the investors or traders will have to pay fewer fees for their respective transactions. This will also allow the investors in the chain to become proper valuators of the network but this feature has a requirement. They should have enough Ether that is marked at 32 to start trading their coins. With the introduction of Ethereum 2.0, the proof-of-work extraction mechanism will be phased out in exchange for owning. This will help in getting rid of the traditional way of mining digital currencies, which will save many efforts wasted on the computing power in this bitcoin era. If miners wish to accept payments for transaction rewards and processing fees, then they will have to shift to staking.