Advance Concept: Understanding Ethereum 2.0 and its Significance

By: Isha Das

Ethereum is currently undergoing revolutionary changes with its much-anticipated upgrade to Ethereum 2.0. Ethereum 2.0, also known as 'Serenity' or 'Eth2', is an upgrade aiming to enhance the scalability, security, and sustainability of the network. However, it's also essentially changing the consensus mechanism from Proof of Work (PoW) to Proof of Stake (PoS). This new upgrade promises scalability by introducing shard chains while maintaining high security and sustainability through a new consensus mechanism.

Ethereum 2.0 launches in multiple phases, with Phase 0, known as the Beacon Chain, already live since December 2020. It introduces PoS and sets the foundation for later phases. Following this phase, Phase 1 is expected to incorporate shard chains, with Phase 1.5 then merging the original Ethereum chain with the Beacon Chain.

The importance of this upgrade to Ethereum cannot be understated. It not only seeks to resolve some of the existing challenges on the Ethereum network, such as scalability and high gas fees, but this upgrade also plays a significant role in the broader adoption and future development of decentralized applications (dApps).