Change type. Click for search in Exxeble Search Engine.


Rachel Welch

03 November 2022 160 Read Crypto

What Is Ethereum 2.0?

Ethereum 2.0 is an upgrade to the current Ethereum network that introduces a new Proof of Stake consensus mechanism. This new system has several advantages, and it is expected to be less wasteful than Ethereum 1.0. For example, it will process transactions at a rate of 100,000 per second, whereas Ethereum 1.0 only allows 30 transactions per second. This increase will enable Ethereum 2.0 to process more transactions in a shorter period of time.

The biggest difference between Ethereum 1.0 and Ethereum 2.0 is that Ethereum 2.0 is designed to be nearly 100% more energy efficient than Ethereum 1.0. Ethereum 2.0 also aims to reduce the cost of processing transactions by removing the need for hardware power. It will also introduce a new staking system, based on the amount of ETH deposited into an Ethereum Foundation deposit contract.