Ethereum 2.0 is coming – Developers locked specifications to future Proof of Stake blockchain
The time of Ethereum (ETH) —still being a proof-of-work blockchain— is coming to an end. Developers took a big step and locked the specifications for the first version of Ethereum 2.0. with Proof of Stake locked specification.
Proof-of-work vs Proof of Stake (PoS)
This is often the debate between Bitcoin’s maximizers and the rest of the community. Maximizers support proof-of-work as the safest way to find consensus. Proof-of-stake has its support in finding lower power consumption and generally higher speed.
Mainly, proof-of-work systems work by mining a network of mining equipment looking for an answer to a complicated mathematical question that is difficult to solve, but easy to verify with an existing solution. This allows the network to agree on its state. The miner who has the highest computational power holds the most significant chance to solve the problem.
The proof-of-stake method swaps the computational power for the number of tokens it held by a participant. The miner locks his tokens for a while, giving him the chance to become a block verifier. Then, randomly selected miner verifies the next block. The selection skewed towards miners with the largest amount of cryptocurrency at stake.
Ethereum will be a PoS
This means that if you are picking up a few tokens, there is a low chance of verifying a block, but if you have many coins locked, the probability increases. This process is considerably less energy-intensive. The security of the network is that anyone who wants to control the system will have to buy at least one-third of all the tokens (depending on the specific parameters of the algorithm). In this way, this participant in the network would have to spend a massive amount of money, which would subsequently depreciate.
Ethereum is moving to the proof-of-stake for several reasons. It is primarily faster than PoW. Furthermore, according to many opinions, it also allows for better decentralization (many POW supporters disagree) and, among other things, reduces the cost of mining in a radical way. Ethereum will move to a new type of mining at the beginning of next year.
ETH developers have now locked the basic code specifications to upgrade to ETH 2.0. The way the transition to the new chain will be realized has been already determined. At the same time, the contract by which the transmission will be accomplished is also locked. Also, the Beacon chain specifications are secured. This will trigger a new PoS blockchain called Phase 0.
Thanks to the lock, developers have their hands free and can focus on other parts of the code. Then, the next TenneTs will be launched, which will verify and test the safe operation of the newly created blockchain.
Ethereum thus stands on the edge of the transition to a new era. This era should be considerably faster and more advanced than the previous one. What Ethereum 2.0 will bring is not yet in sight. So far, it is clear that much of the work is devoted to sharding and 2nd layer scaling. This will further speed up the functioning of the network. ETH holders have something to look forward to. The future is bright and closer than it seems.
Check the official website of Ethereum here: https://ethereum.org/