Ethereum 2.0 Staking Upgrade, Explained

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Akhilesh Agnihotri
Akhilesh is an engineer and research subordinate working with thecoinrepublic.com as a part of the research team and do research work on Cryptocurrency and Blockchain. His curiosity in research and writing brings him to thecoinrepublic.com, He believes writing is all about expressing the thoughts with words and spread information backed by well-researched work.
  • The Ethereum 2.0 set to release over multiple stages (phases) starting in 2020 with ‘Phase’ 0.
  • The expectation is that the new upgrade will roll out in multiple stages. There would be at least three phases over a period of three years.
  • Danny Ryan urges his users to come out of their comfort zones and try more than one client to promote the viable distribution of customer software on the network. 

Ethereum 2.0 is the next biggest update to the Ethereum blockchain. It is a much-awaited update to the Ethereum main public network. The Ethereum 2.0 will be released over multiple stages starting in 2020 with ‘Phase’ 0. Each of these phases will increase the functionality and scope of Ethereum in multiple sectors. The potential development in each phase would most likely address scalability, for faster transactions, mining issues, and overall security of the Ethereum mainnet. The framework of Ethereum 2.0 will be based on “The Beacon Chain”. This new chain will guarantee continuation with the existing Ethereum chain by being fully functional with chain 1.0.

The prime difference between Ethereum 1.0 and Ethereum 2.0

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The two primary features that don’t exist in the original Ethereum blockchain are:

Proof of Stake (PoS): The Ethereum 1.0 is based on a consensus mechanism called Proof of Work (POW). PoW depends on physical miners whereas PoS relies on Virtual miners (validators) to build blocks on the blockchain. This ensures more efficiency, scalability, and security. 

Shard Chains: This mechanism radically increases the input of data of the Ethereum blockchain. Currently, Ethereum is based on a single chain that makes it secure. Now, information can be easily verified. But during high main net activity, the speed of transactions slows down. Hence the introduction of the Shard chain will be in the new upgrade. Shard Chains split the blockchain thus placing the data processing among many nodes. The current Ethereum 1.0 chain will in due time become the 1st Shard chain. 

The ETH 2.0 roadmap

The expectation is that the new upgrade will roll out in multiple stages (Phases). There would be at least three phases released over a period of three years:

Phase 0: Planned to be released in 2020, this first phase would incorporate “The Beacon Chain”. This newly developed chain registers and manages virtual miners (validators). The Proof of Stake (PoS) mechanism would also be first implemented in Phase 0.

Phase 1: Likely to come out in 2021, the chief development would be the Shard chain integration and enforcement. The Ethereum blockchain would supposedly be divided into 64 diverse chains thus believed to make throughput 64 times more. 

Phase 2: Believed to roll out either in 2021 or 2022, it will involve the implementation of cross Shard transfers and withdrawals. There is no more information about this phase yet. 

Vitalik Buterin’s opinion 

Vitalik Buterin, the co-founder of Ethereum recently tweeted about the progress and alleged roadmap of the new Ethereum. He says that the roadmap is a reflection of his views and may have a slightly different perspective from other co-developers. He talks about research, development, and optimization of specific primitives. According to Vitalik, Sharding and ZKPs ensure much cheaper verification cost. ETH2 being Sharded, is also supposed to hold much more quantity of data. 

Updates by Danny Ryan

Ethereum developer opens up on Ethereum 2.0 progress giving insights on the new features. He says Phase 0 is about, coming in terms of validators, regarding the consensus mechanism. Ryan talks about how they must be able to handle a large number of validators during Phase 1+ when the distribution of subsets of validators will take place. He urges his users to come out of their comfort zones and try more than one client to promote the viable distribution of customer software on the network. 

Conclusion 

Ethereum 2.0 will be a reward-based network providing new opportunities to its users. Ethereum 2.0 aims to provide solutions to every problem faced in Ethereum 1.0 if the said upgrades are properly implemented.

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