Ethereum 2.0 upgrade will transition the whole system from proof of work to proof of stake. In addition, it will improve the scalability of the network along with several changes to the infrastructure itself.
Ethereum 2.0 is interchangeable with its two other names, Eth2 or “Serenity.” The foundation announced in January 2022 that Eth2 doesn’t exist. They claim they will not refer to the new upgrade as Eth2. Instead, Eth2 is a network upgrade and not a new network. Therefore, they don’t see the need for a new name. As a result, Eth1 is the “execution layer,” which stores smart contracts and network rules, while Eth2 is the “consensus layer,” which guarantees that devices contributing to the network behave in line with its rules.
However, the name Ethereum 2.0 is not going anywhere.
Ethereum 2.0 – what is happening?
The upgrade will be launched in phases. The first phase is referred to as the Beacon Chain, and it went live on December 1, 2020. The second phase will be launched in the first or second quarter of 2022 and is called “the Merge.” As its name gives off, this phase will merge the Beacon Chain with the Ethereum main net. The phase that will complete the upgrade is shard chains. Instead of settling all transactions on a single blockchain, shard chains distribute them among 64 new chains.
The full upgrade is to be completed by 2023, according to the Ethereum foundation.
What’s the purpose of the upgrade?
The main goal and purpose of the upgrade is scalability. The current network can only handle 20 transactions per second. It works hard to do so, and often this causes delays in the network. The Ethereum 2.0 upgrade improves the network and enables it to perform 100,000 transactions per second.
The upgrade is also focusing on security. Ethereum 2.0 requires at least 16,384 validators, making it far more decentralized and safer than the original platform.