Ethereum Co-Founder Vitalik Buterin has recently tweeted that he regret launching Ethereum in 2014 because There were many bugs and mistake that had to be fixed and that was only possible if they could have taken 9 months delayed time for lauching ethereum in 2015 with upgraded version .He told all these because critics keep complaining about getting delayed for launching Ethereum 2.0 .
Ethereum 2.0 is simply upgraded version of Ethereum and core difference in between them is Ethereum is PoW (Proof of work)consensus based network and Ethereum 2.0 is PoS (Proof of Stake).
Now the question is ,why ethereum needs to implement proof of stake to validate the blocks and run the ethereum blockchain ?
ethereum is currently running on proof of work consensus like bitcoin where miners needs to use computational power to find the blocks and secure the network which is quite complicated because of GAS necessity and huge electricity consumption but when ethereum 2.0 will be completely functional then old mining procedure will be completely changed and ethereum will become fully operational on the base of proof of staking .
To understand the new ethereum 2.0, firstly we need to know about proof of staking .
proof of stake is the mechanism where mining of etherum will be easy by just validate ourself by deposit 32 ETH in deposit contract for blockchain continuation .it can be more easy and comfortable of each and every one who like fast , protected and secured network algorithm but the problem is anybody can be validator by just depositing 32 ETH in deposit contract then how does the ethereum network will work if every one become validator so the answer is , all the validator will be randomly selected fom validator pools and if any validator do some thing suspected then their deposit 32ETH will be slashed or cut in half which will provide balanced networking ecosystem of ethereum blockchain.
Ethereum 2.0 will be categorised in 3 phases in which ethereum 2.0 phase 0 will be launched in 2020 in the month of june and the rest phase 1 and phase 2 will be developing continuously. ethereum 2.0 proof of stake will become active in phase 0 and will start working together with current ethereum blockchain so the big advantage to get from ethereum will be , staking reward which will be earned when you hold your ethereum and do staking individually or through staking provider like custodial or non custodial server.
The question will might rise in your mind that what about current ethereum and what its future ?
The current ethereum which working on proof of work will stop once ethereum 2.0 phase 2 will be successfully launched .so after that there will be no proof of work for validating any ethereum blocks . yes don't worry your ethereum holdings will not be affected and it will be safe from ethereum to ethereum 2.0.
The prime focus to switch ethereum from proof of work to proof of stake to cut the inflation and make the ethereum more valuable, scalable , faster and secured .in example , if we talk about smart contract HEX which runs on ethereum blockchain then you realise they bringing such staking algorithm where users having huge profit.
lets know about FAQ of ethereum 2.0.
Ethereum 2.0 : also called eth2 , upgraded version of ethereum blockchain.
difference between eth and eth2: ethereum(eth) is proof of work algorithm based but ethereum 2.0 is proof of stake bases algorithm.
Ethereum 2.0 can i buy: ethereum 2.0 ether is no such new token but its same ETH but what makes it unique is staking to validate any blocks or continue running blockchain to earn rewards in ETH.
Hot news related Ethereum :
- Reddit a popular content forum is launching ethereum based token to reward their users .
- Visa putting dollars on ethereum.
- Ethereum 2.0 phase 0 will launch in next month.