What Is Ethereum 2.0

POS-the biggest change in Ethereum 2.0

Ethereum 2.0 is not a new idea for the Ethereum community, but it is a big change in the current state of the game. Ethereum's underlying consensus mechanism, which takes into account the limitations of the proof of work in the blockchain, has existed since its inception. In this respect, the introduction of Ethereum 2.0 is particularly significant compared to past upgrades, as the network moves away from its existing proof of work architecture. Proof of Stake (PoS) is probably the most significant change in Ethereum 2.0, since it reforms the way the blockchain is validated in a similar way to the current proof of work (Proof 1.1) protocol.

POW and the old Ethereum    

A consensus mechanism for work verification (PoW) that maintains the current architecture of Ethereum and its current security. This is the architecture used in some of the most commonly used blockchains to date, including Bitcoin, Ethereum, Litecoin, and more. Proof of Work components are well known to the blockchain community, but not to its users. 

What is POW

During the proof of work, miners operate nodes and use computing power to solve complex mathematical problems in competition for the next block. D, where the block reward is distributed to all miners who have successfully created a block, confirms that miners need time and money to operate hardware and use electricity for the Pow chain. PoW chains are extremely secure, and the combined computing power required by a person to compromise a well-established PoW blockchain such as Bitcoin or Ethereum would cost an extraordinary amount of money and might not even exist. And while extremely secure, PoW blockchains suffer from scalability and access problems and cause problems for users.

In PoW blockchains, blocks are broken down sequentially, and there is a finite amount of data that can be recorded in each block, a measurement known as block size. Ethereum can only process a limited amount of information in a given time and stores this information as a block size.    

If the number of pending transactions exceeds what can fit in a block, the remaining transactions must wait until the next block is processed. Shared PoS Network and will fix some of the scalability issues (see below) and refine it further - discontinue it.

How POS works   

PoS miners are the latest in a wave of decentralized technologies observed over the past decade. PoS miners are a key component of the increase in decentralized technologies over the past decade and are a major contributor to the growth of Ethereum. Although blockchains work, the hurdle to entering mining has been and still is quite high.

Individuals need to buy and set up the necessary hardware, and the cost of hardware increases with each development step. They must live in a safe and secure environment with a high level of security and privacy, while making a significant profit from block rewards. However, the cost of electricity in the Ethereum network will not be reduced, meaning that miners seeking maximum profitability would also have to start businesses and buy enough electricity to justify their efforts.

Several large mining conglomerates have outpaced the majority of regular blockchain users to actually participate in network maintenance, leading to the centralization of miners. With Ethereum 2.0, one of the goals was to level the playing field with PoS, with more individual validators participating and earning a shared benefit for maintaining the truth in this network.

The transition to Ethereum 2.0  

PoW in the Ethereum blockchain will no longer exist and will be brought to Ethereum 2.0, which means that there will have been a break in the continuity of data history. This also means that ETH holders will have to go through the same process to exchange Ethereum 1.0 and 2.1 tokens for tokens, which will end the expected extra effort for ETH holders and allow them to use their ETH seamlessly on Ethereum 2 even if their Ethereum becomes obsolete. The original Pow chain will work on Ethereum 2.0 along with other PoS shards, but the Pow consensus mechanism must be maintained, as the history of the original Pow chain will still exist.