Everyone must have heard about Ethereum 2.0 and Ethereum Merge recently . There is no doubt that this is a huge change in the entire cryptospace. It can be said that there has been no upgradation on such a large scale so far. However, most of the cryptocurrency traders or users do not know much about the details. Today we will know in point form what Ethereum Merge or Ethereum 2.0 actually is. What will the road map of Ethereum look like after the upgrade? Will there be any changes to the Ethereum blockchain after the Ethereum 2.0 update? How will the price of ethereum be affected after the update or pros and cons of ethereum 2.0. So let's start our discussion today.
What is Ethereum 2.0?
Any blockchain generally has three important parts.
- The first is decentralization. That is, blockchain needs to be decentralized so that no central authority has control over it.
- The second is SCALABILITY i.e. the ability of the blockchain to take the pressure as the number of users of a blockchain increases.
- Third is security i.e. blockchain needs to be secure enough to be protected from any kind of hacking.
But if you look at the blockchains that exist today, you will notice that every blockchain will have at most two of these three characteristics. Like if we talk about Bitcoin, Bitcoin blockchain is secure and decentralized but not scalable. Similarly if Ethereum is considered, currently Ethereum is secure, decentralized but not scalable. Let's take Solana, another popular blockchain. The Solana blockchain is scalable and secure, but not decentralized. Thus, every blockchain has two qualities at most out of three. Somewhere there is a deficiency. Now Ethereum plans to apply all three of these qualities to the Ethereum blockchain. That is, after Ethereum 2.0 comes in the coming days, the Ethereum blockchain will be decentralized, secure and scalable at the same time. Hopefully by now you understand what the main purpose behind the Ethereum 2.0 upgrade is!
Implementation steps
Now it is about how these three features will be implemented in the Ethereum blockchain. In this regard, the founder of Ethereum is Vitalik ButrinSaid to make the Ethereum blockchain more scalable, we need to change Ethereum's running mechanism and move to Proof of Stake. Now you can tell where is the difference between Proof of Work or Proof of Stake. In short, the Ethereum network currently requires a lot of computing power to run. Which is not environmentally friendly as well as costly and not scalable. Now if Ethereum moves to proof-of-stake, the computing power currently required to run the blockchain will no longer be needed. If you have a certain amount of Ethereum in Proof of Stake, you can become a validator of the Ethereum network or part of the Ethereum network. Ethereum is currently planning to migrate from Proof of Work to Proof of Stake which will gradually reduce the scalability issue.
The first and biggest event of this transition, where Ethereum will switch from Proof of Work Blockchain to Proof of Stake Blockchain, is the Ethereum Mainnet Merge which will take place on September 19th if all goes according to current plans. However, there are four more events after the mainnet merge that need to be completed successfully to get the desired results. It may take approximately 3 more years to complete.
BEACON CAHIN MERGE
Let's now know a little about Ethereum Merge.
The blockchain that the Ethereum network currently runs on is the Proof of Work blockchain. Since Ethereum is going to move to Proof of Stake blockchain, another blockchain called ( BEACON CHAIN ) is created in addition to Ethereum Proof of Work Blockchain which works on Proof of Stake. BEACON CHAIN started its journey on 1st December 2020 with the main purpose of migrating Ethereum to Proof of Stake Blockchain . Currently, until the Ethereum 2.0 upgrade is successfully completed, both the BEACON CHAIN and the Ethereum main blockchain are active together. But currently BEACON CHAIN is completely empty. until nowNo transaction or DAPPS activity has started on BEACON CHAIN . When these two blockchains merge in the future, it is called an Ethereum Mainnet Merge Event. Where Ethereum's Proof of Work Blockchain will be fully transferred to the BEACON CHAIN and then the Proof of Stake will be successfully executed on the Ethereum Blockchain. That is, then Ethereum will no longer work on the Proof of Work but on the Proof of Stake blockchain. Hope you understand now why this event is called Ethereum Merge.
Change
Now let's talk a little about the changes that may come to Ethereum after the successful Ethereum merge.
GAS FEE
This is the first step in the Ethereum 2.0 upgrade where Ethereum will just move from Proof of Work to Proof of Stake blockchain. But the game is not over here, after the 2.0 update, four more upgrades will be introduced to make Ethereum more scalable, which may take the next 2-3 years. Any major changes in Ethereum can be expected only after the successful completion of the upgrades. Accordingly, it can be said that even if Ethereum merges on September 19, there will be no noticeable change in GASS FEE.
TRANSACTION SPEED
It is said that once all of Ethereum's upgrades are completed, which will take about 3 years, Ethereum will support 1 million transactions per second. Which is definitely a huge number and means Ethereum will evolve into a very fast blockchain. For which it is important to have four upgrades after the Ethereum merge. Ethereum Merge is a very small part of this whole upgrade. Due to this, the transaction speed will not suddenly increase to 1 million per second, but it can increase by 10%. The current block time of 13.6 seconds will reduce to 12 seconds.
Other Benefits
As Ethereum moves from a proof-of-work to a proof-of-stake blockchain, its mining system will become completely eco-friendly, and many organizations will be enthusiastic about cryptocurrencies that currently claim environmental pollution caused by mining as a significant reason for their cryptocurrency aversion.
