Ethereum 2.0 is closer than ever, but there is still a lot of work to be done

Since its launch, Ethereum has "evolved in many ways", and is now one step away from the biggest change: Ethereum 2.0.

Proof-of-Stake

Eth 1.x (the current blockchain - here the quotation in real time) and Eth 2.0 will have some similarities, that is the blocks connected on the blockchain. The most important idea is the transition to a Proof-of-Stake (PoS) consensus algorithm starting from a Proof-of-Work (PoW).

In short, a PoS mechanism verifies a transaction from point A to point B with depositors who validate the transfer in exchange for a small reward. If the depositor interferes with the transfer and commits fraud, his funds can be seized by the network.

The algorithm is based on old Bitcoin-based projects and Buterin's model of "weak subjectivity" to create a more elastic consensus model with reasonable limits for successful transactions.

Yes, PoS systems should theoretically send more coins faster than Bitcoin's PoW. Other projects like Tron, EOS and Tezos also use PoS variations. Being able to implement PoS by creating a fraud barrier is the main challenge of Eth 2.0.

Next steps

However, not making the move to a PoS would have consequences. Eth 1.x has seen excessive pressure from users requesting to use its space in the past four months, creating a constant friction problem for applications.

Today, nine teams are coding Eth 2.0 into various programming languages ​​in what are called clients. Most teams expect the project to be implemented from October to November. Eth 2.0 will be distributed in several steps, starting from the Beacon Chain.

This chain will act as the orchestrator of the new PoS network, which will be separated into several blockchains called "fragments". Just last week, a new "final" testnet was announced to precede the multi-client version of the first part of Eth 2.0, called phase 0.

Eth 1.x

The ideas cited by Buterin in the project white paper were implemented as market value grew (although many still lack maturity). “The first category is financial applications, which offer users more powerful ways to manage and enter into contracts using their own money.

This includes sub-currencies, financial derivatives, hedging contracts, savings portfolios, wills and, ultimately, some large-scale employment contract classes too, "wrote Buterin in 2013. Quantstamp CEO Richard Ma , stated in an interview with the media that the ecosystem around Ethereum has grown horizontally since the Eth 2.0 perspective exists.

He pointed to the Solidity programming language and the tools around him as a touching example. Kosala Hemachandra, CEO and co-founder of MyEtherWallet, said that Etheruem has grown mainly in stages.

Hemachandra said that Ethereum has matured over the years, paving the way for decentralized organizations (DAOs), stablecoins and DeFi. The next Ethereum must be even more robust than the current blockchain if we want to build a new financial backbone as expected.