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2022-05-25 | Mike Hallen
Maybe this summer, coming with an improved ETH with the Ethereum 2.0 release.
With Ethereum 2.0, k/as Serenity, Ethereum will soon shift away from Proof-of-Work (PoW) algorithms - also used in Bitcoin mining. Rather, it will move towards Proof-of-Stake (PoS) and Ethereum staking. According to the ETH, the upgrade will have some changes which will make the currency "more secure, more scalable, and more sustainable".
So, for how long do we have to wait for Ethereum 2.0?
Following the launch of the first phase in 2020, the full release of Eth2 yet can’t be predicted till at least 2023.
Initially expected for a 2019 release, there were massive delays during the development period of Ethereum 2.0.
The next move in the ETH upgrade is to merge the mainnet with the Beacon Chain of Ethereum 2.0, enabling full staking. Thereafter, ETH shard chains will launch in 2023, increasing the capacity of the blockchain.
The latest ETH information suggests, that The Merge might happen in Aug 2022. During the Permissionless conference, Preston Van Loon (Ethereum Core developer) said: "As far as we know, if everything goes to plan, August. It just makes sense."
Although he quelled those expectations by saying that it would happen here if they did not need to move the EIP-4345 Difficulty Bomb. Previously, till June 2022, this was delayed.
In EIP-4345, developers James Hancock and Tim Beiko said the Difficulty Bomb could happen later than June. They said:
“Targeting for The Merge to occur before June 2022. If it is not ready by then, the bomb can be delayed further.”
After suffering such massive delays, the full launch of Eth2 is still subject to change.
Obviously, Eth2 might not be complete even after the merge. In an interview with the Bankless podcast, Vitalik Buterin stated the current growth in Eth2:
“I would say around 50[%]. I’d be willing to go past 60 once the merge is fully complete, and I’d be willing to go past 80 once we have a full sharding implementation.”
Presently, Ethereum 2.0 is live on the testnet, with holders before now staking over 12 million ETH.
Prior to this 2.0 upgrade, Ethereum received one more update in the London hard fork on Aug 5, 2021. This update implemented EIP-1559, which changed the transaction fee system of Ethereum, and kickstarted the Ethereum burning of ETH.
Recently, in an interview with Planet Crypto, DARMA Capital's Andrew Keys, also k/as the Ethereum Oracle, said "We’re going to see a full transition to proof-of-stake by mid-Q2 2022."
Resembling with Cardano's network upgrades, the release of Ethereum 2.0 staggers into distinct sections: The Beacon Change, The merge, and Shard chains.
The Beacon Change (Phase 0), first launched in Dec 2020, implemented the PoS algorithm. As compared to PoW algorithms, PoS is less energy-intensive and used in Cardano staking. ETH Staking is presently being tested.
The next phase is 'The merge'. This significant phase will merge the Beacon Chain into the mainnet and observe the end of PoW algorithms.
The final stage is ‘Shard chains’.Introducing sharding to Ethereum 2.0 must allow for elevated scaling of ETH, as transactions might split across 64 new chains.
In a keynote at the Singapore University of Social Sciences, Vitalik Buterin(ETH’s co-founder) described this scaling as "even more important than Proof-of-Stake". With an increase in the demand on the Blockchain and the launching of so many fresh NFT projects, this would be crucial to ETH.
Obviously, current plans for Ethereum 2.0 are not rigid and sustainable, with the Ethereum website cautioning:
Based on the information available, this is how we outlook what is happening. However, this is technology, things change instantly. So please don’t take it as a commitment.
Since the release of the latest Ethereum update on Oct 27 was the Altair Upgrade, set to be the first major update to the Beacon Change.
Ethereum 2.0 is not a new coin.
In terms of Ethereum vs Ethereum 2.0, Eth2 is just an upgrade that will improve the Ethereum blockchain and will not affect the value of ETH the holders hold.
Rather than holders, It might have an impact on Ethereum miners, as the move to PoS will notice 'staking' take over from 'mining' to support transactions on the ETH blockchain.
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