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Ethereum 2.0 - Serenity upgrade

Crypto 08/04/22

Ethereum 2.0

The serenity upgrade on the Ethereum blockchain is one of the most anticipated in the past few years, and it comes with a major switch, Ethereum is going from Proof of Work or POW to Proof of Stake or POS. What that means is that instead of having miners validate transactions and find new blocks, a set of at least 16,384 validators will be required on the network making it highly secure as well as adding to the decentralization factor.

The update’s purpose is also to increase the number of transactions that would go through a block as well as dramatically increase the speed and reduce the costs per transaction.

Back in December 2020, the ETH developers introduced the Beacon Chain which serves as a staking mechanism that’s currently on a separate chain than Ethereum with the purpose of merging it in late 2022 with the Ethereum blockchain causing it to shift from PoW to PoS.

There will also be introduced the concept of shard chains which means that transactions will be split among 64 different chains bringing a huge fix to the scalability issues. It is speculated that it will be possible to perform up to 100,000 transactions per second due to this.

While initially ETH and ETH 2.0 will operate independently on different networks, after a while the networks will merge and your ETH will be transferred to ETH 2.0 as a Proof of Stake shard.

The sentiment behind the Ethereum community is in strong support of this update, Vitalik Buterin one of the Ethereum founders is considering it the next big thing since the mobile internet, and with all the hype behind it, many speculate that Ethereum is close on its track to overtake Bitcoin in the market charts.

It’s going to be a good year for Ethereum and possibly one that will drag the market with it and bring new possibilities and potential to the cryptocurrency universe.