Ethereum 2.0 Is on the Go: Genesis Block of Beacon Chain Winks into Existence

Ethereum 2.0 was supposed to boost the competing abilities of the Ethereum network, and it did so. The project was launched on the 1st of December 2020, and everything went as planned. Now, you might be wondering why we are mentioning it and what is so special about it. Thus, let us have a closer look at the project and what it might mean for Ethereum and other cryptocurrencies.

Stacking Contract

Ethereum 2.0 introduces a new consensus to the network. If earlier, when choosing an ETH to LTC converter, you would compare these coins and tell that they use the same proof-of-work consensus, just like Bitcoin does, after the introduction of Ethereum 2.0, you would speak about a different type of consensus – a proof-of-stake consensus. With it, users will stop relying on computing power to solve cryptographic puzzles but will need to lock Ether into a so-called staking contract.

It will decrease the cryptographic work dramatically. And it, in turn, is expected to bring massive gains for the entire Ethereum network.

Also, each nod will need to have its own cryptocurrency to participate. The more currency a validator has, the more weight it is assigned to the validator. In such conditions, attacking a system will become too expensive to afford it. It means, in turn, an immense boost in the safety level of the system. Basically, this is the first project of its kind. And thus, the perspectives are immense.

Possible Impact

Some specialists believe that Ethereum 2.0 is going to put an end to the era of Bitcoin. Is it the truth indeed? Well, the Bitcoin blockchain has been facing multiple challenges for quite a while. Those are difficulties in scaling, high fees, and similar.

Also, all the data that is to be added to the blockchain, needs to be verified by the nodes that are participating in the process. It means, in turn, that the speed, in this case, is limited by the speed of the slowest node. Thus again, it increases the cost of transactions and slows down the transaction speed. Even if you swap your Bitcoins on a crypto exchange without registration - LetsExchange.io, it will still be slower than you would like to.

A new system, Ethereum 2.0, is going to address all the issues by introducing new technologies. For example, the verification procedures will be divided into groups and assigned to sets of nodes. Each node will verify just the data that it receives. It will boost the system efficiency, the speed of transactions, and will lower the transaction fees.

When Is the Implementation Process Over?

The implementation of the project will be performed in several stages:

• The first stage is the launch of the Beacon chain. It was implemented in December 2020. Thus, now, we have a new proof-of-stake consensus that is used along with the old system.

• Stage 2 is the sharding implementation. The launch is planned for 2021. It is going to enable the verification of parallel transactions.

• Stage 3 is the launch of eWASM. And it is planned for 2022.

What is it going to bring to other cryptocurrencies and whether it means that the end of Bitcoin and similar cryptocurrencies is approaching? For sure, the influence is going to be immense.