For Ethereum, one of the two most valuable elements of the crypto money sector along with Bitcoin 2020 has been an important year. Ethereum, which is highly anticipated by the crypto money community and has received many criticisms due to the prolongation of transaction times, will be updated with many innovations called “Ethereum 2.0”.
With the implementation of the update, the world’s second largest blockchain protocol PoW (Proof Of Work) system will be switched to the Pos (Proof Of Stake) consensus mechanism, which will result in significant increases in scalability, speed and security.
In the current infrastructure of Ethereum, 15 transactions per second are taking place, and this transaction volume is expected to increase with the update. On the other hand, after switching to Proof of Stake, investors will be able to earn interest income with ethereum. It is thought that this will encourage investors to protect the cryptocurrency and the supply in the market will decrease. Thus, investors will be able to accelerate their ethereum purchases with the staking method. As a matter of fact, according to the researches conducted during the year, an increase in the number of ethereum addresses was observed and the peak of 2 years was experienced.
Ethereum founder Vitalik Buterin who stated that the crypto money industry should move forward and worked on the discovery of possible problems that could arise from the lack of scalability, shared important information on Twitter about the expected Ethereum 2.0 update. Accordingly: “ETH2 scaling for data is available before general ETH2 utilization scaling. This means that aggregations will be the dominant scaling paradigm for at least a few years: first ~2-3k TPS with ETH1 as the data layer, then ~100k TPS with ETH2 (phase 1). It will be adjusted accordingly.”
According to Buterin’s statement, the scaling of the network will take place in a gradual manner. After the initial transition to Ethereum 2.0, the network will see an improvement of between 2000 and 3000 transactions per second. But not only that, more gradual improvements will be added to increase speed capabilities up to 100,000 operations per second. Another contribution of Ethereum 2.0 is that it will make the Ethereum blockchain faster and more secure and reduce blockchain operating costs. Ethereum will be released in the 2.0 update, and with this update, Ethereum will become more valuable in terms of many features. In addition, with this development, processing times and costs are expected to be significantly reduced.
