Crypto

What Is Ethereum 2.0?

ETH 2.0

What Is Ethereum 2.0?

Ethereum 2.0, also known as ETH2, is a major upgrade of the Ethereum network. It is designed to increase security, speed, efficiency, and growth of the Ethereum network.

In early 2021, Ethereum 2.0 will exist alongside Ethereum 1.0. However, the original blockchain will merge with ETH2 in the future. If you are an ETH holder, you don’t need to do anything. Your ETH 1.0 holdings will automatically migrate to ETH2. The transition to ETH2 started in December 2020 and is expected to last two years.

ETH 2.0

Why is Ethereum 2.0 necessary?

Although moving a popular cryptoasset from one platform to another is difficult, Ethereum must move to scale and develop. The “Proof of Work”, a method that verifies transactions on the Ethereum 1.0 blockchain, causes bottlenecks, increases fees and uses substantial resources (especially electricity).

Network

Ethereum Network

Ethereum 2.0, also known as ETH2, is a major upgrade of the Ethereum network. It is designed to increase security, speed, efficiency, and growth of the Ethereum network.

In early 2021, Ethereum 2.0 will exist alongside Ethereum 1.0. However, the original blockchain will merge with ETH2 in the future. If you are an ETH holder, you don’t need to do anything. Your ETH 1.0 holdings will automatically migrate to ETH2. The transition to ETH2 started in December 2020 and is expected to last two years.

Proof of Work is a complex task that requires enormous processing power. This is provided by ” miners” from around the globe who are competing to solve time-consuming math puzzles.

The winner is able to update the blockchain with verified transactions and receive a predetermined amount in ETH.

This happens every 30 seconds, compared to Bitcoin’s roughly 10-minute cycle. Due to increased traffic, Proof of Work limitations have led to bottlenecks that cause fees to spike unexpectedly.

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