Ethereum Upgrade
Analogy.
Your phone is old and you search the internet to see if you can get a better phone within your budget. You visit the store the next day and find a better phone. It has better features are better and is even waterproof. What do you do? You take the better version.
The case is the same for Ethereum. Ethereum is doing an upgrade from layer one to layer 2.
Ethereum is doing a network upgrade to increase its scalability, security, and speed.
1. Scalability - The total number of transactions that Ethereum can handle per second are 15. Therefore, the cost of transaction becomes high in a busy network. This is why in a bull market you will often hear that the gas fees are high. The highest ever was $50 dollars per second. Therefore, to transfer $10 dollars, you would have to pay $60 dollars. This makes transacting difficult for day traders. Some even loose profits made. Transaction cost is supposed to be minimal, a few cents.
2. Security - Ethereum 1.0 is secure, however, layer 2 is making a system that mitigates 51% of attacks. This means that they system is quite secure.
3. Less Gas Consumption - Ethereum is looking for a green system to help reduce the rate of electricity consumption during mining. Many people blame cryptocurrency mining as another major source of global warming. Proof of Work leads to miners consuming large amounts of electricity, something which Ethereum aims to avoid by using Proof of Stake.
How Ethereum Plans to do the Upgrade
1. Switch from POW to POS- Ethereum plans to move from Proof of Work with Proof of Stake consensus mechanism.
2. Use Beacon Chain ($BECN) - The first proof of Stake mega blockchain that went live in September 2020. It is therefore no coincidence that the Ethereum Merge is happening in September 2022. The blockchain handles no smart contracts, but is the heart of Ethereum 2.0. It is involved in handling the Proof of Stake rewards for miners.
3. Sharding - Sharding is splitting to smaller pieces to create a decongestion. Ethereum users use a single network to process transactions, therefore, you have to wait in line. When the network is crowded, a transaction that takes 3 seconds now takes 30 minutes. To reduce this, Ethereum is splitting into smaller pieces operating independently from each other. Ethereum aims to split into 64 shards to increase its transaction speed.
When will the Ethereum Upgrade (The Merge)Occur?
Ethereum 2.0 upgrade is set to occur in phases. The slow but sure upgrade mechanism aims to protect its users and get rid of any bugs or technical difficulties. The process already began and the Merge is set for this year September, 2022.
There are four phases,
Phase 0 - Beacon Chain (POS) -1 December 2020.
Phase 1 - Sharding. Launch and begin testing
Phase 1.5,
and Phase 2.0
Can you name the two remaining phases?
The CEO of the crypto network took to Twitter to confirm the final phases of Ethereum Merge. The Merge is set for an exact date that is 15th of September 2022. Other crypto projects inclusive of top crypto developers an in full support of the project. Even Binance CEO Changpeng Zhao is really excited about the Ethereum Merge. Well, stake your coins as early as now.
Comentários