What is Ethereum 2.0 and what does it mean to the Crypto world

What is Ethereum 2.0

Ethereum 2.0 aka Serenity is a completely different theory from the one we met back in 2015 by its developers.

The first thing that comes into mind about Ethereum is the fact that it is the world’s second largest cryptocurrency by market cap.

The idea for the specific update was already familiar to the Ethereum community. What is new, is the upgrade to its underlying network. The team decided to replace its old Proof of Work algorithm during to specific restrictions, to a different architecture called Proof of Stake.

Proponents of Ether believe that the new update will bring bigger space to the transaction scale. PoS algorithm will allow thousands of transactions happening per second. In addition it could bring much more recognition, efficiency or even price increase.

“Serenity” update is split in parts with the first upgrade being already out and running since the end of 2020.

Ethereum 2.0 Vs 1.0

The world’s second largest crypto 1.0 version was running under the algorithm of Proof Of Work (PoW) while Ethereum 2.0 is using the modern Proof Of Stake (PoS) algorithm.

What are the differences between PoW and PoS?

In order to understand how these systems work, you first need to know how Blockchain technology works.

Proof Of Work: Ethereum works on a similar way Bitcoin does as both need to verify transactions in a decentralized way. Ether is not the only currency to use the mechanism of Proof of Work, as there are tons of projects using the same architecture such as Litecoin, Dogecoin, Bitcoin Cash etc.

Wanna know more?

Visit our blog to read the original article: https://instaswap.io/blog/what-is-ethereum-2-0-and-what-does-it-mean-for-the-crypto-world/

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