Staking Ethereum 2.0 – An innovation in the mining
Ethereum is one of the most impressive cryptocurrencies ever to be launched. Since the launch of Ethereum back in July 2015, this open-source and blockchain-based platform has continued to evolve and surpass expectations. With several records to its name already, the Ethereum price prediction is almost a safe bet for those who have traded this cryptocurrency since the beginning. We’re no longer talking about an ancient Book of Ra but the second-largest cryptocurrency platform in the world. It’s also safe to assume that both Ethereum and Bitcoin will remain at the top of the cryptocurrency chain for many years to come.
Given the constant evolution of this cryptocurrency, an update should have appeared much earlier. For those who trade cryptocurrencies nowadays, the fact that the current ETH blockchain is about to reach its limits is no longer Ethereum news! We finally have an update that will arrive in November of 2021 and that promises to solve all current problems and prepare the blockchain for the evolution of Ethereum mining. One of the developers at Prysmatic Lab, a company responsible for the Ethereum 2.0 infrastructure, mentioned that a launch in November is very likely.
And while this is not set in stone, as there are quite a couple of factors that could influence the best time to release Ethereum 2.0, Raul Jordan, Prysmatic developer, claims that, despite potential security checks and improvements in the user experience, “November is still favorable for a launch.” With this in mind, let’s see what we know so far about this long-awaited update.
Essential Features of Ethereum 2.0
A blockchain update cannot be compared to that of an operating system or an application update. In this particular case, updates are performed only when the blockchain absolutely needs them and has reached a point of no return. Now, Ethereum 2.0 promises a maximum of 100,000 transactions per second, unlike the previous version, which supported only 14.
At the same time, with this new update, there will be a transition from a proof-of-work mechanism to one that is proof-of-stake. The latter assumes that miners will be rewarded based on their stake in the blockchain. That will undoubtedly have a massive impact on Ethereum price, which will most likely end up beating all of its previous records once again.
Peer-to-peer optimization is also on the list of improvements and exciting Ethereum news. The nodes will benefit people with a better reputation and behavior while restricting less relevant people’s activity with the new version.
So far, everything sounds almost too good to be true. While there are still some miles ahead, any new difficulties that may arise along the way and affect the ETH network’s interoperability with other blockchains will be resolved with this new update.
Lastly, the Ethereum 2.0 APIs will benefit from full integration into Prysm. For the most part, ETH 2.0 is meant to bring Ethereum value to a level in line with its evolution in recent years. The years of delay in this update have made Ethereum mining earn more from fees than Bitcoin mining, namely $ 1.2 million in just a few days from transaction fees!
User Experience and Security
The new Ethereum update is currently running on the public test network Medalla, where it is being rigorously tested and checked before it will be finally moved to the main net. The well-known security firm Trail of Bits will perform the second security audit of the ETH 2.0 Prysm client. As for the first audit, it was conducted by Quantstamp.
Up to this point, the developers behind ETH firmly believe that these two audits will be enough to ensure the safety of every Ethereum miner out there and also to improve the user experience in the foreseeable future. Of course, the Ethereum analysis after the second audit does not mark the end of the work for them. They have the entire roadmap laid out in front of them, and these are the main boxes that they plan on checking:
- Creating a complete Ethereum 2.0 web interface for Prysm;
- Fixing all major bugs before switching from test net to the main net;
- Improving the Slasher algorithm (this is the algorithm responsible for punishing cheats inside the blockchain);
- Creating a common format for Slasher protection to facilitate the transport of keys between Ethereum 2.0 users.
What Does the Transition from ETH 1.0 to ETH 2.0 Entail?
First of all, the Ethereum 2.0 update will not involve any significant and immediate changes, especially for the everyday Ethereum miner. The transition will be remarkably smooth to protect mining and ensure that the switch will not have any downsides or adverse effects.
As such, the transition from Ethereum 1.0 to Ethereum 2.0 will take place in several gradual stages. First, we will have Stage 0, which is expected to commence in November and extend over the following year. From what we know so far, Stage 0 will be an accommodation one, a fact that has also been confirmed by the developers behind the project. Every Ethereum miner will be able to “melt” their eth1 cryptocurrencies to receive the rank of validator within eth2. These validators will act as security bodies of the Ethereum 2.0 Company. That will be mainly due to the proof-of-stake mechanism addressed in this update.
That means that the network will start by supporting a hybrid model involving both PoW and PoS. This way, both the block validators and the GPU/ASIC miners will have enough space to maneuver. Thus, Ethereum crypto will not jump to the 2.0 version overnight. Likely, the whole transition process might even last years. Only time will tell, but one thing is for sure, exciting times are ahead for Ethereum crypto fans!
In the end, Stage 1 will strengthen the preparations from Stage 0 and activate the blockchains that will process transactions and contracts with Ethereum 2.0. As soon as ETH runs exclusively on PoS rails, two natural choices will be presented to each miner. The first one would be to sell all current equipment and start investing in Ether, while the other option, prawn to GPU miners (concerning GPU miners), would be to begin the transition to other altcoins. In the end, experts do not doubt that the Ethereum ecosystem will face no difficulties in adjusting to the PoS and that the entire process will be conducted simply and efficiently.
Arthur Rowley is an avid writer specializing primarily in technology and marketing. Having spent years finessing his craft, he can now assure you that he has much acclaim for these areas and is dedicated to providing high-quality blogging content.