The highly anticipated by Ethereum investors is Ethereum 2.0 When? The answer to the question has become clear. The Ethereum 2.0 transition begins on December 1, 2020.
Before announcing the Ethereum 2.0 transition, what is Ethereum for beginners? Ethereum, in its most general definition, is a distributed data platform. It is an innovative system that aims to develop blockchain technology and use it in more areas. It also supports a computer protocol called a “smart contract”. Its founders, Russian computer programmer
Vitalik Buterin
and British programmer Gavin Wood, wrote the system and it was implemented in 2013. Ethereum 2.0 entered the agenda of cryptocurrency miners and users with the presentation of Vitalik Buterin, one of the founders of Ethereum, at the Ethereum Developers Conference (Devcon) in 2018.
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What Will Change with the Ethereum 2.0 Transition?
Ethereum 2.0 has created Constantinople and Istanbul updates, preparation stages and testing processes for the new programming, also called Serenity. With the completion of 3 stages in total, the transition process will be completed.
With Ethereum 2.0, the Proof of Work consensus will be replaced by the
Proof of
Stake consensus. In this way, Ethereum production will be produced with machine systems where electrical energy is consumed intensively, while the transition to the Staking method, which is more energy-efficient and environmentally friendly, will be realized. In order to make a smooth transition to the Ethereum 2.0 network, 524,268 ETH must be sent to the deposit agreement prepared for the Ethereum 2.0 update, in other words, it must be staking. Once the required limit is reached, the Ethereum 2.0 update can be activated without any problems.
Stage 0 – Beacon Chain
At this stage, which we can translate as Signal Chain, the mining method on the Ethereum network will change and will also enable the transition to the data movement method called “Sharding”. As of this phase, Ethereum 2.0 will not be fully operational. The main role of the Beacon Chain in Ethereum 2.0 is to ensure that all parts have the most up-to-date data.
Another important issue that concerns users is that with Stage 0, the Ethereum blockchain currently used with the mining system will work at the same time. We can say that it is a kind of stage that provides a transition process. Ethereum users will be able to start mining Proof of Stake. With this update, users who want to make a profit will have to transfer their investments in the existing chain to the Ethereum 2.0 chain with a minimum of 32 Ethereum. Another important point is that while transfers from the Ethereum chain to the Ethereum 2.0 chain can be made until the transition to Stage 1- Shard Chains, the transfer from the Ethereum 2.0 chain to the existing chain will not be possible.
Step 1 – Shard Chains
At this stage, which we can translate as Fragment Chains, it is the stage where the data will be divided into parts and moved and the processing will be easier. It is seen as an important stage of scaling in Ethereum 2.0.
In Phase 1, it is aimed to create 64 Split Chains. Shard Chains will be connected to Beacon Chain and 1024 independent shard chains will be added to the system according to this stage. The main challenge at this stage will be to ensure that the Parts Chains work together quickly enough. At this stage, the existing Ethereum blockchain and the Ethereum 2.0
blockchain
will continue to work in parallel.
Since Validators who mine Proof of Stake will also receive Ethereum revenue, the amount of Ethereum produced (released) can be expected to be higher than normal during this period. Especially at this stage, serious reductions in transfer costs may occur.
Stage 2 – State
Execution Stage 2 is considered to be the Start of Implementation. The functions tested in Phase 0 and Stage 1 will be combined in this phase and the focus will be on the smart contract system. The transition from a simple process structure to a regular process structure will be completed.
