Anakut Cash LogoANAKUT CASH

Ethereum 2.0: What You Need to Know

post image

Ethereum 2.0 is a major upgrade to the Ethereum blockchain aimed at improving the scalability, security, and sustainability of the network. This upgrade is being rolled out in multiple phases, with the final phase expected to be completed in 2022.

Key Features of Ethereum 2.0

One of the biggest changes in Ethereum 2.0 is the switch from a proof-of-work (PoW) consensus mechanism to proof-of-stake (PoS). This shift aims to reduce energy consumption and make the network more efficient.

  • Sharding: Ethereum 2.0 introduces sharding, which divides the network into smaller pieces, or "shards," to process transactions in parallel.
  • Staking: Validators will replace miners in Ethereum 2.0, and they will be rewarded for locking up their ETH as collateral to secure the network.

Ethereum 2.0 represents a significant step forward in making the Ethereum network more scalable and efficient, addressing the high transaction fees and slow processing times experienced by users.