Ethereum & Its Major 2.0 Update

• Solidity is Ethereum’s own programming language.

• Ethereum 2.0 update will be deployed in three phases including Beacon Chain, The Merge, & Sharding.

• Ethereum 2.0 will involve Difficulty Bomb Delay, EIP-4345.

Ethereum, like any other cryptocurrency, is a blockchain technology that serves applications, digital money, and global payments & is the second most popular cryptocurrency following Bitcoin. However, Ethereum is far more than just a cryptocurrency or a medium of trading. A blockchain-based decentralized computer network is what it defines itself as. The native cryptocurrency is Ether (ETH) and it has its own programming language called Solidity.

Ethereum is also a decentralized public ledge which verifies and stores transactions. The users present on the network can develop, launch, monetize and use applications on the platform. Such apps are known as Dapps. Network of the Ethereum is programmable and also a financial marketplace for several games, services and apps that can be purchased via Ether and it all remains free from theft or frauds.

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Ethereum was developed by a small team in 2015. The creator of ConsenSys, Joe Lubin, who is a blockchain application developer, was involved in the group. Vitalik Buterin, who is the current company’s CEO, is known for inventing the idea of Ethereum and is the world’s youngest crypto millionaire. Ethereum was launched with an aim to allow developers to develop dapps and smart contracts, staying free from the problems such as involving third parties, fraud, downtime, etc. Ethereum is a large existing network that carries out a large variety of functions, shows constant development with innovation and avoids involvement of third-parties. However, increasing transaction fees, possible inflation due to no fixed supply, and unpredictable future are some reasons that come with all the services Ethereum offers.

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Ethereum is receiving a major upgrade called Ethereum 2.0 or Eth2. This upgrade involves introduction of the Beacon chain, sharding and shifting to Proof of Stake. This update will be implemented in three phases. Phase 0, also called the Beacon Chain, took place on 1 Dec 2020 and created the Beacon chain, a Proof of Stake blockchain, which will work as the consensus hub and central coordination for Ethereum 2.0. Phase 1, also called The Merge, is thought to take place in early 2022, which will merge the Beacon Chain with the Ethereum network, resulting in consensus mechanism shifting from Proof of Work to Proof of Stake. Phase 2, also known as Shard Chains, will take place in 2022 to implement sharding, in which the load of the Ethereum network will be distributed over 64 shard chains and Ethereum 1.0 is thought to turn into one of the shard chains of Ethereum 2.0.

The Ethereum 2.0 will also include EIP-4345 Difficulty Bomb Delay which will elevate the puzzles difficulty level in mining algorithm which is used to reward miners. Making puzzles more difficult will create a gap in production of blocks on the blockchain. This time has also been referred to as Ethereum’s Ice Age, also the time when transitioning from Proof of work to Proof of Stake takes place.

The Ethereum 2.0 upgrade is a required update for the blockchain and will help this decentralized system of smart contracts to move up with reliability, vision, and security. The upgrade will surely attract more audience or bring more attention and convince them to use Ethereum 2.0 as their service of choice.