More Scalability, Throughput and New Proof Of Stake consensus mechanism.

Ethereum was being launched as a Platform to deploy decentralized application using blockchain back in 2015. It conducts this mechanism using Smart Contracts (the type of contracts that executes when certain condition met), Distributed Applications i.e. dApps which run without interference of third party, fraud or control.

Issues of currrent Ethereum 1.0:-

1) Scalabiltiy:

Current version of Ethereum has serious issue of performing number of transactions per second. As it is capable of handling to only 10-15 transaction per second. It is a significant issue for Ethereum 1.0 which developer have try to improved it in Ethereum 2.0

2) Computing Power:

As it is also known as World Computer due to its support of dApps and smart contract to execute transaction, it validate transaction using the PoW i.e. Proof Of Work consensus mechanism. But, it uses immense computation power for validating transaction and hence energy efficiency of network is minimal.

3) Security:

In fact recent news published on 6th June 2020 shows that 2.7 Million Gas fees for fraction of amount transaction!. That concerns really for many users as it was unusual.

4) Accessibility:

Ethereum 1.0 have some accessibility issue when it come to workload on blockchain. That will be seen improvement in Ethereum 2.o with the high throughput for network.

Ethereum 2.0:-

Etherum 2.0 will have fastest, with more security added and at the same time changing of consensus mechanism.

Key Fetures:-

• Scalability:

  Ehereum 2.0 will significantly increase scalibility and reduces burden of workload on blockchain.

• Proof of Stake:

  PoS will enable less computational power for validating transaction and energy efficiency will be enhance on the network.

  Here is the graph for staking rewards to those who will run node as validator.

• Shard Chain:

  As I said scalability will be increase by improving shard chain which will split into 18 shards. This will help to significant increase in transaction.

• Security:

  Expect to be improvement in security as Ethereum 2.0 will not delete history of transaction or data after release of Ethereum 2.0. This will ensure continuity and more security.

• Throughput:

  Efficiency and output generated by network will have significant improvement over the entire network due to its changing consensus mechanism and chain splitting.

• Improvement in Gas Fees i.e transaction fees.

It is expected to launch at the end of this year in 3 phases i.e. Phase 0, Phase 1 and Phase 2.

• Phase 0: It will launch at the end of this year with implementation of 'Beacon Chain'. Beacon Chain stores registry and manage validators. This will be done using Proof Of Stake (PoS) consensus mechanism rather than PoW (Proof Of Work).

• Phase 1: It is expected to be launch in 2021 with the improvement of 'Shard Chains'. Shard Chains are a scalability mechanism on Ethereum network that perform number of transactions per second. With that saying, Ehereum blockchain will split into 64 different chains which will carry on parallel transactions and hence increase scalability.

• Phase 2: The third phase will be launch either at the end of 2021 or start of 2022. This phase will enable transfer and withdrawal of ether accounts. But with launch of phase 3, PoW consensus mechanism will completely remove.

Cons Of Ethereum 2.0:

• One can't buy Ether on Ethereum 2.0. Instead, it provides 3 options for getting reward. First one is, run the node as a validator and earn Ether. Second option it provides via staking through joining pool. Third one via making depositing ether into Ethereum 2.0 deposit contract.

• One can't withdraw ETH 2.0 ether back to ETH 1.0 ether.

• Slashed' penalties for the node validator for being done malicious activities such as going offline and not performing duties. This may cause losing of funds.

Resources:

https://consensys.net/knowledge-base/ethereum-2

https://www.coindesk.com