Ethereum 2.0 Overview
Updated: Nov 2
As a long-time crypto trader, I have noticed uncertainty around ETH 2.0, especially with novice traders that have joined the crypto space recently, that's why I decided to explain how Ethereum 2.0 works and why you should know that.
What does ETH 2.0 mean for Ethereum?
We are talking about a series of major upgrades that will improve Ethereum's scalability, security and sustainability. Read about the latest Merge.
Will Ethereum be a new coin?
Ethereum 2.0 will not become a coin and is not going to replace the current circulating Ethereum. So if you hold some Ehereum in your wallet don't worry, the upgrade is not going to affect any of your funds.
What will Ethereum 2.0 do?
It will be a series of upgrades of the blockchain, with no action needed from holders and traders.
The first update that started in December 2020 is the transition from Proof of Work (PoW) commonly known as mining, to the Proof of Stake (PoS). Basically, it will allow users to validate transactions, not through the mining process, but through the staking of their funds, and get rewarded in the same way. The other upgrades will increase the scalability, so the amount of data processing during the staking.
Has Ethereum 2.0 been launched?
The first upgrade, The Beacon Chain, has already been launched on December 1st 2020, introducing the Ethereum 2.0 staking, aka Proof of Stake (PoS). It can be joined by staking 32 ETH.
When will Ethereum launch?
There is no fixed Ethereum release date for the next upgrades. Although on the Ethereum website the estimated shipping time for the whole upgrade is 2022. Let's keep in mind that the current PoS process will take at least 2 years.
With this in mind, we can now stop worrying and be more confident about ETH 2.0.
If you wish to know more about Ethereum 2.0 news I'll deeply recommend visiting the official website https://ethereum.org/, where every step is completely explained from a more technical perspective.