Since April 2022, Ethereum, one of the most popular cryptocurrencies in the world, has been running on two parallel blockchains: Ethereum Mainet, which uses proof of work, and Beacon Chain, which is a test chain that only uses proof of stake.
Ethereum 2.0, also known as the Merge, is here to change that, combining the two parallel blockchains and making them even better. Ethereum 2.0 is the new version of the Ethereum blockchain that uses a proof of stake mechanism to help verify transactions done via staking.
Proof of stake is a process where users have to stake their tokens to secure and validate transactions. Ethereum 2.0 comes with a lot of improvements to the previous operating Ethereum blockchain, which are:
Scalability
It will be more scalable, allowing it to adapt to different blockchain environments and still produce effective and, most significantly, user-friendly platforms and transactions.
Fast Transactions
Its ability to verify and validate 10,000 or more transactions in a second makes it the fastest Ethereum blockchain available and hugely solves the transaction delay problem of other blockchains.
Security
It was developed to provide more security to transactions and aims to protect the Ethereum network using the slashing mechanism against all forms of attack.
Environmentally Friendly
Ethereum Mainet requires a large amount of electricity to run and poses a danger to the environment. Not forgetting about the environment, Ethereum 2.0 is going to adopt green IT measures and practices to reduce over 98% of its carbon footprint and deliver environmentally friendly blockchain technology.
With all these advantages and more, apart from being the second largest cryptocurrency, Ethereum is now the largest proof-of-stake blockchain in the world, all thanks to Ethereum 2.0.
Although there are some setbacks to Ethereum 2.0, since it operates on a proof of stake, there will be no need for mining, reducing the production of ether per day by over 80%.
Where there is less production, there will be scarcity due to higher demand, and this will cause an increase in the price of the Ethereum token.
No doubt, Ethereum 2.0 is a big step up. What do you think about it? And if there is ever an Ethereum 3.0, what blockchain problems will you want it to solve?
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