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The revolution of digital currency has come of age. This revolution, which has yielded more positives than negatives, was heralded by the advent of Bitcoin a little over a dozen years ago. That brave step made by Satoshi Nakamoto opened the floodgates for more cryptocurrencies.
When Bitcoin was introduced in 2008, it was truly synonymous with cryptocurrency. This situation always rings true for every first mover in a market; the name of every first mover is always linked to that particular product despite its competitors. KFC is synonymous with tasty chicken, as McDonald’s is with fast food. The others can come in second place. This was (and still is) true for Bitcoin until the introduction of the Ethereum network 3years after Bitcoin.
The technology-oriented crypto has impressed greatly on the hearts of a lot of people because it offers a different kind of project to Bitcoin. The cryptocurrency project is centered around being the haven for decentralized applications (dApps) to be established. This purpose has bumped the cryptocurrency to one of the largest (second after Bitcoin) currently.
Ethereum network is one of the most secure networks in the crypto space, but it was necessary to create a more secure cryptocurrency that the network was upgraded to ETH2. With ETH2, the system would be malicious-proof by reinforcing the former codes the system was built on, and yes, you will be able to stake Ethereum via redot.com/eth2/ .
What is ETH 2.0 all about
When Ethereum was introduced in 2011, it was fueled by the desire to do something different from Bitcoin. There were talks at the time that Bitcoin was not truly decentralized because its pricing was controlled by the privileged few who possessed the token. Bitcoin was created as a second exchange option or currency, but Ethereum was created to make use of the Ether for Dapps and smartcontracts.
With ETH 2.0, it is an upgrade on the existing cryptocurrency network focused on improving the effectiveness and the ability to scale even higher with qualities such as lesser transaction time. The way Ethereum currently runs is that its transactions are processed by a proof-of-work system. This involves validating transactions by miners and requires a significant amount of computational power. This has been a point of controversy because it requires a lot of energy which does not sit perfectly with a safer environment. The alternative transaction system is a proof-of-stake that requires verification of transactions by validators.
Blockchain fragmentation is also another upgrade made for ETH 2.0. For clearer context, it is referred to as sharding. The Ethereum blockchain is split into multiple fragments called shards (a term common to only Ethereum but referred to as Sharing in other crypto terms). The workload is split equally among shards hence maximizing speed. With shards, the fragments of blockchain work in a synchronized manner when validating transactions.
Every shard holds the same information as the processing transaction. The different validators are shuffled and reshuffled, making it difficult to manipulate data, but a beacon chain keeps that validation in constant communication with each other.
The upgrade for ETH 2.0 keeps the whole system honest and increases the volume of transactions made because of the speed at which transactions are churned out.
Ethereum foundation amendment after earlier confusion
The announcement made last year by the Ethereum Foundation that there would be an upgrade to Ethereum 2.0 caused a lot of stir in the ecosystem. Users of the popular cryptocurrency platform, Coinbase were a little bit confused when the platform listed both ETH and ETH2 despite the foundation’s insistence that the change was a change in name and system. The error of the crypto platform was clear as the market capitalization, trading volume, coin value of ETH and ETH2 presented the same numbers.
Ethereum Foundation came out earlier this week to control the narrative, which was spinning out of reach. In a blog post announcement, the message states that the initially announced ETH2 name would be quashed to stop all the existing confusion. The foundation also confirmed that any ETH and ETH2 reference made on any of its platforms would be redacted.
The common mistake outlined by the foundation is that there is an information schism that has been propagated since last year’s announcement. The widespread misinformation echoed by the foundation is that many people have thought of ETH as a forerunner of ETH2 or that ETH would be defunct after ETH2 is launched. Scammers have also taken advantage of this misinformation by telling users to swap eth tokens or migrate to ETH2 tokens to be part of Ethereum development.
The foundation finally took steps to put an end to all the furor and offer clarity to the whole situation. It announced that the whole system would now be called Ethereum, and changes such as the beacon chain would basically be classified as upgrades.
Public response has been divisive on the whole matter as some users have taken the stance that the update is taking too long to be implemented. Another user stated that the organization took too long to correct this error as many people and even reputable crypto platforms have taken the ETH to ETH2 paradigm to heart, and propagation has gone farther than imagined.
Earlier this year, in a podcast session, the co-founder of Ethereum, Vitalik Buterin, confirmed that developments and preparations on Ethereum explorer are halfway done. He confirmed that the development is a two-part transition stage called the merge and surge, respectively. The first half of the year would see the implementation of merge, while surge would be executed in the second half of the year and early next year.
The changes on the Ethereum explorer would see a more economic use of energy with a proof-of-stake system. It would also massively scale the Ethereum system with a shard chain system. The explorer is a data platform/block that presents the summary of transactions.