the major difference between Ethereum and Ethereum2 (ETH2.0)
— 4 minute read
In this article, we will learn the major difference between Ethereum and Ethereum2 (ETH2.0)
What is Ethereum?
Ethereum is a platform for digital money, international payments, and applications. The community has created a thriving digital economy, as well as innovative new ways for creators to make money online. It's accessible to anybody, wherever in the globe – all you need is an internet connection.
Ethereum isn't just a cryptocurrency, with Ethereum there is a variety of applications that are used in modern financial such as Trading, Swapping tokens, Lending, Tokenizing your artworks (NFTS), and there is a number of countless opportunities.
Many Decentralized applications (apps) are powered by Etherium, These are applications that focus on using cryptocurrency to expand financial services. They provide services like lending, borrowing, earning interest, and making private payments without requiring personal information. some of them are Aave, compound, Uniswap, Axie Infinity, 1Inch, etc
Current Etherium stats: Current Price: $2,174 No of nodes: 8000+ (second largest after bitcoin 80000+) Average no of Transactions: 1 million-plus VALUE LOCKED IN DEFI (USD): $61.29B
The Interesting thing about Ethereium is its open-source nature and ability to create different ERC tokens, which have the same features as the Etherium coins such as Transaction speed, security, as of now Ethereum's main net can handle 20 transactions per second with an average confirmation time of 5 minutes.
so to make a growing demand for Ethereum, to make it more scalable, more sustainable, more secure, and faster, they are implementing many up-gradation to the mainnet of Ethereum, and they call it Ethereum 2.0
there are three major updates for ETH2.0 and that is adding the Beacon chain to the Ethereium Ecosystem, next is Merger with The Beacon chain and Final is the shard chains.
The beacon chain makes no changes to the Ethereum we use today The network will be coordinated by it. Proof-of-stake is introduced to the Ethereum ecosystem. this is referred to as "Phase 0."
The Ethereum mainnet will eventually "merge" with the beacon chain proof-of-stake mechanism. This will be the final step in Ethereum's shift from proof-of-work to proof-of-stake. This is supposed to happen before the shard chains go live.
What exactly is sharding? A common topic in computer science is sharding, which is the technique of partitioning a database horizontally to disperse the load. By constructing new chains, or "shards," sharding will minimise network congestion and boost transactions per second in the Ethereum context.
This is significant for reasons beyond scalability.
Shard Chains (2022)
Sharding is a multi-phase update for Ethereum that improves its scalability and capacity. Shard chains distribute the load of the network among 64 new chains. They make running a node easier by lowering the hardware requirements. This upgrade will occur after the mainnet and Beacon Chain have been merged.
the final stage shard chains is very important as it will increase the overall performance of Ethereum, and the number of transactions are expected to increase way beyond our imagination and also lowers the gas fees.
one Reddit user Roymustang wrote: ETH2.0 will change the way new coins are mined. The energy consumption to mine new coins will be way less. You can stake your coins to earn interest. It will also improve scalability. This is the simplest explanation I can give you.
Summary: to summarize the difference between Eth and Eth2.0, we can say that Current Proof of Work is going to change with Proof of Stake similar to Cardano, which decreases the mathematical computation of solving a puzzle in turn reduction of usage of electricity and more Eco-Friendly way of using Etherium, the second thing is Secure and Scaling to more financial stability and increase the number of transaction per second(10000 per sec ).