What is Ethereum 2.0 and Why Does It Matter?

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What is Ethereum 2.0 and Why Does It Matter?

 

What is Ethereum 2.0, and why does it matter?

Ethereum is undoubtedly the most used global software platform backed by blockchain systems. Smart Contracts, dApps, and any digital technology, Ethereum is all-set to curate digital technology with features and possibilities of the blockchain. 

Ethereum’s cryptocurrency, ETHER or ETH, plays an integral part in transactions happening on crypto, NFT and the blockchain field. Ethereum development is also likable by developers, as from the scalability, security, and integration part, Ethereum is best. 

However, with increasing blockchain usability by the public and businesses, Ethereum is facing some problems that must be solved. For individuals, Ethereum is a likable place for investment, and corporations and organizations use blockchain development services to improve their systems. So, these problems must be addressed for a better future for Ethereum and crypto. 

Ethereum 2.0 is something new in this field. With numerous updates, this 2.0 is going to change the complexities inside Ethereum consensus. So, let’s condense our thoughts on what Ethereum 2.0 is and why it matters to people. 

What is Ethereum 2.0?

Ethereum 2.0 is the latest version of the classic Ethereum blockchain system, and the updated version claims to be better than the previous one. Critically acclaimed as the second-best blockchain, Ethereum handles user application, transactions from all around the world. Also, Ethereum is among the most popular cryptocurrencies after Bitcoin. 

But with an increasing user population, Ethereum classic was facing numerous problems arising on different levels of streamlining. Ever-increasing electricity consumption, high-end equipment usage, and carbon footprint were some of the issues in the Ethereum consensus. 

Read Also: Everything You Need to Know About DeFi Ecosystem

Ethereum 2.0 addresses all these problems by providing users with a more sophisticated, updated and developed cryptocurrency and blockchain system. Let’s understand the two major issues Ethereum 2.0 aims to solve – 

  • High Power Consumption

Before Ethereum 2.0 merged in 2022, Ethereum used the proof-of-work consensus model to validate and verify transactions. In this consensus mechanism, the validators verify transactions using high-end computers. The requirement of high-end computers is to solve complex mathematical solutions named hashes. 

The problem with this consensus mechanism is ever-increasing electricity usage. Before a transaction gets listed on the public blockchain, miner computers consume a lot of electricity to solve math and validate those transactions. The same problem with the Bitcoin system, as it was recorded to use electricity at a rate of 127 Twh. 

With Ethereum 2.0, Ethereum transactions don’t require high electricity to validate transactions, and it’s now recorded to limit electricity usage successfully and efficiently. 

  • Carbon Footprint

The Ethereum system was responsible for a high amount of carbon footprint release. According to a report, Ethereum was recorded to be responsible for 44 million metric tons of carbon emissions per year, which was something really traumatic for the future of this cryptocurrency. 

But, after the 2022 Ethereum merge, all the reports and records concerning Ethereum’s high carbon footprint changed overnight. Post 2.0, Ethereum has drastically cut down its energy and carbon footprint to 99.99%. As Ethereum moved towards an eco-friendly consensus model, it’s now ready to provide a better future for cryptocurrency and blockchain users. 

These upper corrections can make Ethereum the most environment-friendly blockchain system in the future. 

Is Ethereum 2.0 More Secure?

As technology is evolving to benefit people, hackers are also updating their mechanisms to impact adversely with their hacking tactics. And, while cryptocurrencies and blockchain are mainly famous for having a decentralized with hacking and penetration-proof layers, still blockchain security is a matter developers have to ensure. 

Customers using cryptocurrency and blockchain are nowadays more knowledgeable about security factors, so people definitely ask Ethereum about the updated security issues with Ethereum 2.0.  

Ethereum 2.0 is more decentralized and will save users from ‘The 51% Attack’. With a proof-of-stake model, Ethereum 2.0 requires a large base of validators to manage the transactions. Currently, Ethereum 2.0 needs 16,384 validators, which increases the decentralization factors and saves people from any malicious penetration and manipulation. 

What About ‘The 51% Attack’?

According to reports, Ethereum classic has faced numerous 51% attacks, so Ethereum 2.0 must provide better security than Ethereum Classic. 

The 51% attack is called when a few miners get 51% validation access, so they can easily alter the blockchain system. The new Ethereum 2.0 system is claimed to provide better scenarios for these kinds of attacks. 

Generally, penetrating a proof-of-stake platform is very expensive, as hackers have to use high-end computers with staked cryptocurrencies to start implementing an attack. With the new Ethereum, all these types of attacks will be reduced. 

Conclusion

With numerous claims and discussions, Ethereum 2.0 merge will settle the Ethereum foundation to touch new possibilities. Ethereum development practices will get more polished and sophisticated as Ethereum 2.0 is more scalable. Undoubtedly, Ethereum 2.0 is something gigantic, and well, it does matter!

Read Also: How Do Smart Contract Applications Actually Work

If your business requires Ethereum 2.0 development, consider searching for a veteran Ethereum development company. Also, you can hire a blockchain development company for a spectrum of Ethereum services. 

Author Bio

Akash Guha is a content writer with a grasp of different web content creation. He has an interest towards writing website content for multiple industries like blockchain, mental health and finance. Also, he is aimed to write simple and easy-to-understand content. 

By |2023-01-12T15:15:30+05:30November 28th, 2022|Blockchain|Comments Off on What is Ethereum 2.0 and Why Does It Matter?

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