What is Ethereum 2.0? Everything you need to know!
Ethereum Foundation is launching the second version of this platform called Ethereum 2.0. Ethereum 2.0, also known as “Eth2” and “Serenity”, is the next update in the Ethereum blockchain.
This major update will be released in several different phases (phase zero, phase one and phase two). Phase zero launched on December 1, 2020. Each phase will improve the performance and efficiency of the Ethereum in various ways.
Eth 2.0 is the name of a major Ethereum upgrade that promises to bring significant improvements to the network, as promised by the Ethereum team.
Two of these developments are “proof of stake” and “sharding”, which ultimately lead to a sharp increase in transaction speeds and a reduction in fees.
Proof of stake is an alternative to mining in Ethereum. Simply put, in this method, people who want to participate in transaction verification and block building no longer need to provide mining and power hardware. They can buy Ethereum instead and give it to the network, and the network will reward them for their assets.
Of course, Ethereum mining will continue for a long time. Eth 2.0 has several main phases, phase zero of which launched on December 1, 2020. In this phase, proof of stake is activated, but mining continues in parallel. In phase two the mining ends that the execution time of which is still unknown.
There are two ways to participate in proving Ethereum stock; Direct activity and indirect activity.
In the direct method, you have to download the main client (software) of Eth 2.0 from the official site and allocate at least 32 ethers (over $16,000 at the time of this writing) to the network. You should also have at least one home computer with relatively powerful hardware and your computer always on. Therefore, it is possible for less people to participate directly in proof the stake.
In the indirect method, you have to wait for the update to be implemented and exchanges such as Binance and wallets to allow their users to share. In this way, you will be able to participate in proving Ethereum shares with any amount of capital.
Ethereum’s proof-of-stake earnings are not yet known and could change momentarily, but are estimated to be between 4 and 10 percent per annum. Do not forget that proof of stake is more suitable for people who have made long-term investments in Ethereum and want proof of stake reward during their investment period.