Ethereum is an alternative coin to bitcoin, but since the beginning of 2020, the company has been working on its new project ether 2.0 which will move Ethereum from proof of work to proof of stake.
Enabling Ethereum to work on a blockchain that is different from any other blockchain.
The current price of Ethereum.
Ethereum is worth $205 per token, the last time I checked it was between $250, but as bitcoin surged back to $8000+ after the move to $9000. Ethereum, just like other alternate coins, that also depends on bitcoin to pump before their price increases, fell back to its current state.
Ethereum could be seeing a hard time but the recent development of Ethereum 2.0 will lift the coin from going bearing to bullish state. Many Ethereum users predict this bull time to come by 2021.
What is Ethereum 2.0?
This is a new upgrade of Ethereum from a proof of work to a proof of stake algorithm. It will speed up the transaction time of Ethereum more than any other blockchain. Their motive is to build a proof of stake system that allows any blockchain system to handle a lot of transactions without requiring any individual node.
With this type of system, you don’t have to wait for 1 confirmation like other blockchains that handle 15 transactions per second. The Ethereum architecture has been designed to allow more than a thousand transactions in a second which is as fast as a credit card transaction.
Ethereum 2.0 has three phases
Phase 0
Phase 1
Phase 2
which are Beacon chain, shard chain, and state execution, consecutively?
Beacon chain
This is a chain that manages the consensus of Ethereum 2.0, it stores information about the proof of stake and the information it has sent. It is a central chain, the consensus itself revolves around it. Beacon chain treats shard chain block as a simple collection of bits with no structure.
Shard chain
They allow parallel transactions throughput and 64 of then will be deployed in phase 1, its major function is on the validity, construction, and the consensus of the data chain of the shard chain.
State execution
This indicates an execution environment, all the system functions starts to get together at this stage. It supports contracts, accounts, and other abstractions that we know.
The development of this blockchain technology will not only take Ethereum to the moon but also enhance Ethereum to be faster than any other coin when it comes to transactions and trading.
For this reason, users rely on this new technology when predicting the skyrocket of Ethereum price. Now that Ethereum is going bearish I will encourage people not to have fear but use this opportunity to, perhaps, get more ETH.
