Ethereum 2.0 is a restructuring of the world’s smart contracts, Ethereum. Some changes are introduced in the way the network works, among them, some that could potentially help in the profitability of currency holders such as proof-of-stake.
Thank you for reading this post, don't forget to subscribe!Ethereum 2.0 will be a restructuring of the largest innovative contract platform in the world, Ethereum. Many changes will be made, and some can help you monetize the Ethereum that you have stopped.
Major Changes with Ethereum 2.0
The idea is to improve the use of the network, providing scalability and greater ease of development. The main differences from the first version to version 2.0 will be:
- Change of consensus algorithm
Perhaps the main change will be this, introducing how the Ethereum network validates contract processing blocks. Through the mining activity, where high computational power is required, the members are paid through Proof-of-Work (proof of work, that is, proof of processing the blocks by their GPU´s graphics used.
As is well known, the price of graphics cards over time and the need for greater capacity on the network led to the price scale and stockouts of graphics cards. It was like that in 2016/7, with the leading brands announcing exclusive mining plates, separating from the gamers/games niche.
With the new update of Ethereum 2.0 finalized, POS (Proof-of-Stake) is introduced. With less energy impact, reduced hardware for block mining increased immunity with the possible creation of more nodes. All of this and 32 ETH contribute to the network through the creation of block mining nodes.
- Remodeling of the network structure
The idea of decentralization is associated with a kind of computer unique in the world; Ethereum will become even more decentralized with the Shards concept.
What does it mean? Simply, it is the decomposition of a mega computer into several computers that exchange information somewhere in their process path. (a bit like hard disk partitions, understand Ethereum blockchain as your hard disk, divided into two or more sections, which communicate with each other later).
- Change of consensus algorithm
The change in remuneration in the mining area will also be changed, as previously mentioned. Instead of Proof-of-Work, it will become Proof-of-Stake (similar to Polkadot).
In practical terms, two ethers per mining block will also be necessary, added to a variable amount of Ether generated on the blockchain with Proof-of-Stake. This formula currently runs on Ethereum until it is fully integrated into Ethereum 2.0.
