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What is Ethereum 2.0? What happens to Ethereum when Ethereum 2.0 comes out?

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1 year ago

Many already know what Ethereum and Ethereum 2.0 are, but the others don't. This post is for those who don't. So if you already know about the Ethereum network, there is nothing new in this post, so I suggest not to read it. Or maybe you can. I don't know.

Ethereum

Ethereum is currently the second biggest crypto, only behind Bitcoin in market cap.

Current Bitcoin Market cap - $686.7B

Current Ethereum Market cap - $265.7B

Ethereum, just like Bitcoin and other cryptos, is a decentralized digital currency. But Ethereum is not just a medium of exchange or a store of value like Bitcoin. Ethereum is a decentralized computing network built on blockchain technology. Using Ethereum network users can sign smart contracts on the blockchain.

Users can build applications that run on the blockchain, just like software on a computer. These applications can store and transfer personal data and complete complex transactions. 

 

Ethereum 2.0

In simple words, Ethereum 2.0 is just an update to the current Ethereum network. This update is said to improve the speed, scalability, and security of the network, thereby increasing the number of transactions it can process and reducing the transaction fees. Currently, the transaction fees for ETH are ridiculous and are one of the reasons stunning its growth.

The first phase of the update is the change in the computing technology of Ethereum. From proof-of-work technology that requires a large amount of processing power contributed by virtual miners. Ethereum is moving to a more environment-friendly proof-of-stake technology. 

The network is expected to be released between 2022-2024, maybe it will take even more time. Data are limited on its launch dates. Share your knowledge in the comments.

 

What happens to Ethereum when Ethereum 2.0 comes?

Many investors have the same question. I had that. So let me explain it clearly. Ethereum 2.0 like I said earlier is just an update to the network. So If you hold Ethereum(ETH) in your wallets, it will be updated automatically. Currently, platforms like coinbase have listed Ethereum and Ethereum 2.0 as two separate tokens. But when the update comes out it will be the same, a single token which you can trade much more efficiently as the update suggests. So there is nothing to worry about the update, but to be optimistic about what the update means to the network and its future. Ethereum is already finding its way in to the mainstream adaptation and this update will further the adaptation into more streams.

 

Thank you for reading.

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