As the Ethereum 2.0 upgrade and release draws closer, most of us wonder about the difference between Ethereum and the upgraded version of Ethereum 2.0. The race to upgrade the previous version is constrained to Ethereum as other networks are also on that race.
When it comes to the differences between Ethereum 2.0 and Ethereum, one of the primary take-home and talking points is the Ethereum 2.0 concerns on staking. The Ethereum 2.0 is introducing a new concept that is different from the one we are used to in Ethereum that requires proof of work, POW algorithm to the proof of stake algorithm. The above difference in the two upgrades will lead to a decline in Ethereum mining, and in this place, the best staking crypto will take the upper hand. Ethereum staking is considered less environmentally damaging and does not violate the transactions on the network rendering the network almost 100 percent efficient.
Another difference between Ethereum 2.0 and Ethereum is the issue with sharding. Over the past few years, the Ethereum network has continued to grow exponentially, reducing the pressure on nodes and blockchain. With the upgrade to Ethereum 2.0, the network will introduce 64 new extra chains through the sharding process.
With the new additional shards that come with Ethereum 2.0, the speed of completing a transaction will almost double as transactions can now get completed within seconds. Consequently, Ethereum 2.0 comes with extra security features. The network is much more scalable to the blockchain network than the previous version of the Ethereum network before the upgrade.
Those traders are still wondering what will happen to their old Ethereum wallet once the Ethereum 2.0 gets released. In such a case, one should not worry, as all ETH apps will get automatically synchronized with the new upgrade Ethereum 2.0. All deposits done through the previous version will get automatically transferred to the new Eth 2.0. in phase 1.5.
With the new Ethereum 2.0, there have been various upgrades to the network’s performance. One of the improvements that traders and miners can experience is those interested in staking, as currently, they are supposed to wait up to phase 1.5 to start staking. With Ethereum 2.0, one can begin to staking immediately at phase 0. Also, one can join the network as a validator provided they have approximately 32 ETH on their wallet or make such a deposit.
Another improvement with Ethereum 2.0 that was not available in the previous Ethereum versions is that now it’s possible to stake their Ethereum on other platforms such as Kraken and Redot. Now one can start staking from as low as 0.1 ETH. Some of these measures come as incentives to attract potential stakes on higher blocks as validators are now allowed to commit their funds to the Ethereum blockchain network right from the beginning.
Another differing moment between Ethereum 1.0 and Ethereum 2.0 is how these two blockchain networks build consensus during a transaction. As noted above, Ethereum 1.0 uses what can get referred to as proof of work. On the new upgrade, Ethereum 2.0, the blockchain network will focus on proof of state mechanism. It is one of the different moments between the two. The consensus method is fundamental in determining how the Ethereum network validates a transaction in a decentralized manner. Ethereum 2.0 is edging closer to its predecessor, such as Bitcoin, which has been using proof of work as its consensus coping mechanism.
When it comes to factors such as scalability, this is probably the main reason why Ethereum has to upgrade to Ethereum 2.0. it’s important to note that the previous version of the Ethereum network could only support approximately 30 transactions in a second. It’s one of the reasons why the Ethereum network used to phase delays and unwarranted congestion over the network.
On the other hand, Ethereum 2.0 network comes with better scalability as it promises approximately 100,000 transactions in a second. The speed and scalability in Ethereum 2.0 have been achieved by adequately implementing a sharding chain.
With Ethereum 2.0, it is evident that this network upgrade is being developed with the network’s security in mind. The majority of blockchain networks that use proof of stake as a consensus mechanism usually come with a small set of validators. This arrangement differs from the previous arrangement in Ethereum 1.0, which is more centralized and slightly decreases security. When it comes to Ethereum 2.0, this network comes with approximately 16000 validators, making the network more centralized, and in the long run, the network becomes more secure.
The Interworking of the Ethereum Network
Ethereum network works with validators that are available for each shard that is the one that maintains the Ethereum network infrastructure and the overall maintenance. The Ethereum 2.0 network comes with 128 validators known as a committee when comparing the two upgrades.