How Ethereum 2.0 is Gearing up to Revolutionize Blockchain
2022 is proving to be a rather challenging year for cryptocurrency and NFTs. The entire market has been affected by an upheaval of losses, changes in tokens, and greater economic downturn. However, that has affected not just the blockchain. Stocks, traditional investments and the global economic health have sharply dipped as well.
Crypto advocates and investors are now poised to take a much more careful look at the legitimacy of projects, tokens, and networks. Accordingly, 2022 will prove to be an important year for cryptocurrency. However, these new challenges present the opportunity for stand out projects to revolutionize blockchain as we know it.
In this article, we take a look at Ethereum 2.0. We update how the project is gearing up to evolve the blockchain while also providing a steadfast investment through the bear market.
Ethereum 2.0 has already made headlines across the blockchain space
Rebranded as the ‘consensus layer’, ETH 2.0 is getting closer to launch. That is compared with Ethereum 1.0, which was rebranded as ‘execution layer’. Originally planned for 2019, the new launch date for ETH 2.0 is likely to be set around August of 2022, as mentioned in an article by currency.com.
The upgrade is a major one for the Ethereum network, with several key changes being implemented. One of the most talked-about aspects of ETH 2.0 is how its launch will create a lasting impact on blockchain technology. Specifically, a move from the proof-of-work (PoW) consensus mechanism to a much more environmentally friendly and less energy costly proof-of-stake (PoS) system. This upgrade in systems is being branded as “The Merge,” and will affect the Ethereum Mainnet.
The Merge is ready to transform the whole of Ethereum
ETH 2.0 is set to upgrade the entire Ethereum ecosystem. It will allow for the expansion of the network of stakers, a crucial change to the network. ETH 2.0 also will be able to process more transactions than the current network.
Part of the execution of “The Merge” is when Ethereum will enact what it calls its “difficulty bomb,” which is a mechanism that will make it unprofitable to mine via PoW instead of PoS.
One of the growing concerns about blockchain in general is its energy consumption. Luckily, Ethereum is showing that it is once again ahead of the curve. The move from PoW to PoS demonstrates Ethereum’s ability to innovate by cutting back on energy requirements needed to make its network run.
Ideally the PoW system will end by August 2022 as the new consensus layer makes its debut.
In addition, Ethereum has also been working on other upgrades and improvements. One of which is Plasma, a scalability solution that could help Ethereum increase its capability to process transactions per second.
ETH 2.0 will be able to process around 100,000 transactions per second
Transaction speeds at this level will be a major improvement from the current Ethereum network. ETH 1.0 can only handle around 15-20 transactions per second. Implementing such a massive improvement would leave positive impacts not just for trading. Additionally, it would also benefit all projects that utilize the Ethereum network, including NFTs and nodes.
How is such a change possible? ETH 2.0 is planning to accomplish this with the introduction of sharding. Specifically, sharding is a process of dividing the Ethereum network into multiple parts, or shards. Each shard will have its own blockchain and will be able to process transactions in parallel. At its core, the introduction of sharding means that ETH 2.0 will be able to store data much more efficiently.
Importantly, this change is likely to help further improve the scalability of ETH 2.0. It could also help attract crypto investors who are looking to help make up for losses incurred throughout the early half of 2022.
Ethereum releases its roadmap for future upgrades and scalability
The team behind Ethereum continues to release new plans for updates. It also hopes to improve the network as a whole. The roadmap for the coming years can be seen here, where the changes go well into 2023 and 2024.
A move to the consensus layer could prove to be a major step forward for the Ethereum network. It provides a way for projects linked with Ethereum to expand its usability and thrive throughout the bear market. Also, with improved scalability and performance, ETH 2.0 has laid down a strong foundation for a successful launch in the near future.
Save your investments with the latest knowledge and tools
In the midst of the bear market that has presented itself in 2022, Ethereum has taken the steps needed to address how it will continue to grow and advance in the years to come. This will happen through its laundry list of upgrades and network transformations.
Investors are likely already preparing for the major update as it could lead to long-term impacts on major blockchain investments. The bear market currently leaves many worried. But, with pioneers and innovators like those behind Ethereum and other projects, crypto markets will likely see an eventual return to a much needed bull market.
Investments are still facing the potential to make serious gains or losses in 2022. It’s vital to learn the latest news and reports from passionate blockchain advocates. Cryptonairz is a free online community that is dedicated to helping people learn about and invest in the blockchain space. Joining the Cryptonairz Community allows you to get in touch with a passionate community of people concerned about the future of cryptocurrency.