Ethereum 2.0 (Serenity or ETH 2.0) refers to a set of interconnected upgrades that will make Ethereum more scalable, more secure and more sustainable to solve the blockchain trilemma in its own way, a concept proposed by its co-founder Vitalik Buterin, according to which a blockchain has to sacrifice one of the three key aspects (decentralization, security, and scalability) in favor of the other two.
Of course, Ethereum 2.0 will be far more important than any of the Ethereum blockchain forks and upgrades to date.
Big Ethereum 2.0 Changes
Ethereum is the second most valued and recognized cryptocurrency platform in the world after Bitcoin. Obviously, the changes to be implemented with Ethereum 2.0 are also focused on trying to snatch the throne from Satoshi Nakamoto’s creation.
Ethereum 2.0
It currently uses a proof-of-work (PoW) consensus algorithm like Bitcoin. PoW enables mining by using high-powered computing to solve complex mathematical problems to verify transactions. Because of this, PoW wastes energy, is not environmentally friendly, and has high transaction costs, as high demand is driving up fees.
Ethereum prepares to switch at ETH 2.0 to a more adaptable and flexible proof-of-stake (PoS) consensus algorithm. PoS aims to increase the speed, scalability, and efficiency of the Ethereum network so that it can process a large number of transactions.
However, the Ethereum Foundation does not want to sacrifice decentralization for the sake of bolstering scalability potential. Therefore, the new platform seeks the ideal balance between both factors. It is decentralization that gives Ethereum resistance to censorship, openness, information privacy and almost unbreakable security.
Ethereum 2.0 will later implement a very original architecture called segmentation or fragmentation (sharding), which consists of a network of parallel channels that work simultaneously. Each segment will manage a different set of accounting balances and smart contracts.
Of course, the sharding occurs in a layer 2. The current layer 1 will continue to work. Basically layer 1 will be a sphere containing all layer 2 and control them for conflict avoidance, arbitration function and others.
When will it arrive?
If all goes to plan, mainnet docking with ETH 2.0 will arrive in the second quarter of 2022, according to their official schedule.
The mainnet will continue to be protected by proof-of-work, even while the beacon chain and its shard chains run in parallel using proof-of-stake. Coupling consists of the fusion of these two systems.
Ethereum 2.0 timeline
The mainnet will bring the ability to run smart contracts on the proof-of-stake system, in addition to the full history and current status of Ethereum, to ensure a smooth transition for all ETH holders and users.
The shard chains (data sharding) should be shipped sometime in 2023, depending on how quickly the work progresses after docking. These shards will give the network more capacity to store and access data, but will not be used to execute code.
Shard chains will expand the blockchain’s ability to process transactions and store data. The shards themselves will gain more features over time, deployed in multiple phases.
