{"id":19749,"date":"2022-12-13T06:38:47","date_gmt":"2022-12-13T06:38:47","guid":{"rendered":"https:\/\/zebpay.com\/au\/?p=19749"},"modified":"2022-12-13T06:38:50","modified_gmt":"2022-12-13T06:38:50","slug":"what-is-ethereum-2-0","status":"publish","type":"post","link":"https:\/\/zebpay.com\/au\/blog\/what-is-ethereum-2-0","title":{"rendered":"What Is Ethereum 2.0?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-ethereum-2-0\/#How_Does_Ethereum_20_Differ_From_Ethereum\" title=\"How Does Ethereum 2.0 Differ From Ethereum?\">How Does Ethereum 2.0 Differ From Ethereum?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-ethereum-2-0\/#Why_is_Ethereum_Moving_From_Mining_to_Staking\" title=\"Why is Ethereum Moving From Mining to Staking?\">Why is Ethereum Moving From Mining to Staking?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-ethereum-2-0\/#What_Happens_to_Ethereum_After_Ethereum_20\" title=\"What Happens to Ethereum After Ethereum 2.0?\">What Happens to Ethereum After Ethereum 2.0?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-ethereum-2-0\/#How_will_Ethereum_20_Work\" title=\"How will Ethereum 2.0 Work?\">How will Ethereum 2.0 Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-ethereum-2-0\/#How_Could_Ethereum_20_Affect_Ethereums_Price\" title=\"How Could Ethereum 2.0 Affect Ethereum\u2019s Price?\">How Could Ethereum 2.0 Affect Ethereum\u2019s Price?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-ethereum-2-0\/#Final_Thoughts\" title=\"Final Thoughts\">Final Thoughts<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>Ethereum\u2019s long-awaited upgrade is finally here. After years in the making, Ethereum\u2019s scalability update &#8211; known as \u201cthe Merge\u201d &#8211; has been implemented. This update is intended to finally solve prevalent issues on Ethereum like high gas fees and network congestion. One of the most notable changes towards this has been the shift from proof of work to proof of stake consensus. So how does Eth 2.0 work and what are the differences?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_Ethereum_20_Differ_From_Ethereum\"><\/span>How Does Ethereum 2.0 Differ From Ethereum?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"538\" src=\"https:\/\/zebpay.com\/au\/wp-content\/uploads\/2022\/12\/Ethereum-2.0-Differ-From-Ethereum-1024x538.jpg\" alt=\"How Does Ethereum 2.0 Differ From Ethereum\" class=\"wp-image-19747\" srcset=\"https:\/\/zebpay.com\/au\/wp-content\/uploads\/2022\/12\/Ethereum-2.0-Differ-From-Ethereum-1024x538.jpg 1024w, https:\/\/zebpay.com\/au\/wp-content\/uploads\/2022\/12\/Ethereum-2.0-Differ-From-Ethereum-300x158.jpg 300w, https:\/\/zebpay.com\/au\/wp-content\/uploads\/2022\/12\/Ethereum-2.0-Differ-From-Ethereum-768x403.jpg 768w, https:\/\/zebpay.com\/au\/wp-content\/uploads\/2022\/12\/Ethereum-2.0-Differ-From-Ethereum.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n<p>The primary difference after this Ethereum upgrade has been a change in the consensus mechanism. Earlier, Ethereum used the same method popularised by Bitcoin, <a href=\"https:\/\/zebpay.com\/au\/blog\/why-proof-of-work-works\" target=\"_blank\" rel=\"noreferrer noopener\">proof of work<\/a> (PoW).\u00a0<\/p>\n\n\n\n<p>Ethereum proof of work is a process in which users of the blockchain, known as miners, employ powerful computers to solve cryptographic problems. The first one to solve the problem wins the chance to verify and add a block to the blockchain. Doing this ensures all transactions on the blockchain are legitimate. To compensate miners for their effort and energy used, they were rewarded with ETH tokens.&nbsp;<\/p>\n\n\n\n<p>Now, the process has been shifted to <a href=\"https:\/\/zebpay.com\/au\/blog\/proof-of-stake-explained\" target=\"_blank\" rel=\"noreferrer noopener\">proof of stake (PoS)<\/a>. Most popular blockchains today use proof of stake for speed and efficiency. Unlike PoW, proof of stake does not require powerful computers. Instead, users must \u201cstake\u201d or lock in their tokens as collateral. The network then randomly chooses a validator who verifies and adds blocks to the blockchain. Your chances of being chosen as a validator increase with how much you stake.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_is_Ethereum_Moving_From_Mining_to_Staking\"><\/span>Why is Ethereum Moving From Mining to Staking?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>PoS has two main advantages over proof of work &#8211; energy efficiency and speed.&nbsp;<\/p>\n\n\n\n<p>Bitcoin is notorious for the amount of electricity it uses. <a href=\"https:\/\/zebpay.com\/au\/blog\/what-is-bitcoin-mining\" target=\"_blank\" rel=\"noreferrer noopener\">Bitcoin mining<\/a> is estimated to consume as much electricity as the entire country of Argentina. This has led to scepticism from many people over how effective crypto would be with its high energy consumption.\u00a0<\/p>\n\n\n\n<p>Read more: <a href=\"https:\/\/zebpay.com\/au\/blog\/what-is-staking-crypto\" target=\"_blank\" rel=\"noreferrer noopener\">What is Staking Crypto<\/a><\/p>\n\n\n\n<p>Ethereum proof of stake solves this problem by eliminating the need for powerful computations. You do not need to have the latest hardware to be able to participate in staking. Instead, you need to lock in 32 ETH to qualify as a validator. It is much more sustainable and reduces Ethereum\u2019s carbon footprint by almost 99.95%.&nbsp;<\/p>\n\n\n\n<p>Since PoW\u2019s puzzles are difficult to compute, finalising a block can be a time-consuming process. The staking approach thus also benefits speed by simplifying the path to consensus.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Happens_to_Ethereum_After_Ethereum_20\"><\/span>What Happens to Ethereum After Ethereum 2.0?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Ethereum\u2019s first steps towards ETH 2.0 started in December 2020. This is when the project started running on two parallel blockchains, the Ethereum Mainnet and the Beacon Chain. The Mainnet was the legacy blockchain using PoW while the new Beacon Chain utilised PoS. The Merge of September 2022 combined these two blockchains into a single system, marking 15th September 2022 as the Ethereum 2.0 release date.<\/p>\n\n\n\n<p>The Merge is only a part of Ethereum 2.0\u2019s launch. Next, the developers aim to introduce \u201csharding\u201d. This is a process by which Ethereum operations will be spread out over 64 chains, rather than a single chain. Sharding also makes it easier to run a node as each computer needs to store lesser data to function.&nbsp;<\/p>\n\n\n\n<p>Ethereum has several planned phases of improvement. These include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Merge<\/li>\n\n\n\n<li>Surge<\/li>\n\n\n\n<li>Verge<\/li>\n\n\n\n<li>Purge<\/li>\n\n\n\n<li>Splurge<\/li>\n<\/ul>\n\n\n\n<p>So what phase is Ethereum 2.0 in? This upgrade is still in the merge stage. There is thus a lot more development to come.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_will_Ethereum_20_Work\"><\/span>How will Ethereum 2.0 Work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Ethereum 2.0\u2019s scalability improvements will come from shard chains. Currently, Ethereum can only process roughly 30 transactions a second. This is nowhere near sufficient for the massive traffic that flows through the network. Shard chains are expected to increase this number to an astounding 100,000 transactions per second.&nbsp;<\/p>\n\n\n\n<p>It is also more secure since Ethereum requires a minimum of 16,384 validators. This ensures the decentralisation of the network and prevents the <a href=\"https:\/\/zebpay.com\/au\/blog\/blockchain-vs-cryptocurrency\" target=\"_blank\" rel=\"noreferrer noopener\">blockchain<\/a> from being compromised.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Could_Ethereum_20_Affect_Ethereums_Price\"><\/span>How Could Ethereum 2.0 Affect Ethereum\u2019s Price?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"538\" src=\"https:\/\/zebpay.com\/au\/wp-content\/uploads\/2022\/12\/How-Ethereum-2-Affects-The-Price-1024x538.jpg\" alt=\"How Ethereum 2.0 Affect Ethereum Price\" class=\"wp-image-19748\" srcset=\"https:\/\/zebpay.com\/au\/wp-content\/uploads\/2022\/12\/How-Ethereum-2-Affects-The-Price-1024x538.jpg 1024w, https:\/\/zebpay.com\/au\/wp-content\/uploads\/2022\/12\/How-Ethereum-2-Affects-The-Price-300x158.jpg 300w, https:\/\/zebpay.com\/au\/wp-content\/uploads\/2022\/12\/How-Ethereum-2-Affects-The-Price-768x403.jpg 768w, https:\/\/zebpay.com\/au\/wp-content\/uploads\/2022\/12\/How-Ethereum-2-Affects-The-Price.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n<p>Full implementation of Ethereum 2.0 and integration with shard chains are bound to push the price up. More scalability means more users and more transactions are supported. This increases the demand for ETH tokens and drives up the price.&nbsp;<\/p>\n\n\n\n<p>A reduction in gas fees is also a welcome change for many users. In the past, the cost of completing a transaction &#8211; or the \u201cgas fees\u201d &#8211; has crossed even the value of the transaction. Making Ethereum cheaper to use is sure to appeal to many prospective users.&nbsp;<\/p>\n\n\n\n<p>Read more: <a href=\"https:\/\/zebpay.com\/au\/blog\/what-is-the-ethereum-merge\" target=\"_blank\" rel=\"noreferrer noopener\">What is the Ethereum Merge<\/a><\/p>\n\n\n\n<p>Will Ethereum 2.0 be a new coin? Thankfully, nothing will change for the ETH token. ETH 2.0 is not a different coin, but the same token on an updated blockchain.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Final_Thoughts\"><\/span>Final Thoughts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Ethereum 2.0 is a much-needed step for the success of Ethereum going forward. With the rapid rise in the number of crypto users, the network was simply unable to keep up. But further development is necessary for Ethereum to reach its full potential. Constant innovation is what will cement Ethereum as the dominant project in the industry.<\/p>\n\n\n\n<p>You can <a href=\"https:\/\/zebpay.com\/au\/markets\/eth\" target=\"_blank\" rel=\"noreferrer noopener\">buy Ethereum<\/a> with 0 trading fees till December 14th on ZebPay. Read more about the latest happenings in the crypto market on <a href=\"https:\/\/zebpay.com\/au\" target=\"_blank\" rel=\"noreferrer noopener\">ZebPay blogs<\/a>.<\/p>\n\n\n\n<p class=\"has-small-font-size\"><strong><em>Disclaimer:<\/em><\/strong><em> This report is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. The Company has prepared this report based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. This report is preliminary and subject to change; the Company undertakes no obligation to update or revise the reports to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Trading &amp; Investments in cryptos viz. Bitcoin, Bitcoin Cash, Ethereum etc. are very speculative and are subject to market risks. The analysis by Author is for informational purposes only and should not be treated as investment advice.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ethereum\u2019s long-awaited upgrade is finally here. After years in the making, Ethereum\u2019s scalability update &#8211; known as \u201cthe Merge\u201d &#8211; has been implemented. This update is intended to finally solve prevalent issues on Ethereum like high gas fees and network congestion. One of the most notable changes towards this has been the shift from proof [&hellip;]<\/p>\n","protected":false},"author":23,"featured_media":19746,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[14],"tags":[16],"class_list":["post-19749","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto","tag-crypto"],"acf":[],"_links":{"self":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts\/19749","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/comments?post=19749"}],"version-history":[{"count":1,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts\/19749\/revisions"}],"predecessor-version":[{"id":19750,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts\/19749\/revisions\/19750"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/media\/19746"}],"wp:attachment":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/media?parent=19749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/categories?post=19749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/tags?post=19749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}