What will happen with Ethereum 2.0?


For internet users who invest, but cannot understand or see the impact of the Ethereum 2.0 upgrade, here is a brief explanation of the main changes and their direct impact.


1.- Improvements to the scalability of smart contracts

One of the solutions for scalability is Optimistic Rollup, which consists of a technology that will provide greater scalability to the smart contracts used by decentralised products and applications (dApps), increasing their power from 100 to 2,000 transactions per second. All this is necessary because currently the level of transactions per second of Ethereum is very low.


2.- Changes to the Ethereum consensus algorithm will move Ethereum to Proof-of-Stake (PoS) and away from Proof-of-Work (PoW), a process that involved a huge electrical cost for operators mining to support the Blockchain. This will mean that Ethereum will be much more environmentally friendly.


3.-Implementation of the Sharding Protocol

Another implementation is the Sharding protocol, which will divide the Ethereum Blockchain into block fragments, each of which will process their respective smart contracts and transactions. In this way, each node in the network will not need to process the whole block, but smaller parts.


Let's hope that the new update goes as expected and this will help to overcome the bloodletting of these weeks in the crypto ecosystem.

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