Ethereum 2.0: What Do We Know About The Second Version Of The Famous Cryptocurrency

Ethereum
Blockchain, DLT, Finance

The market of cryptocurrency was a viral sensation a few years ago but is still relevant. It is an area where something modern is invented, currencies moved, technologies applied. That is why it is worth tracking changes, modifications. One of the acclaimed news in the world of blockchain is the question of what is Ethereum 2.0. In the article, we found out a complete response.

What Is Ethereum?

A platform is not only a cryptocurrency, but also a technological generation blockchain platform that works for creating decentralized applications on the foundation of blockchain, smart contracts. That means none of the organizations or individuals can’t control processes. Improvement was implemented by the global tight-knit community. The strength of a project is a smart or intellectual contract that helps to avoid any possibility of censorship, cheating, fraud. The platform was presented on 30 July 2015 with 11,5 million coins. It became one of the first projects using smart contracts on the foundation of blockchain. The substantive purpose of the system is to create an Internet environment with an open financial system, internal payment system, where everyone has unobstructed access. The key principles are an affiliation of the data to users, openness, neutrality, security.  

Who Is Vitalik Buterin?

Vitalik is a writer, programmer, co-founder of a project with Gavin Wood. He started to learn the topic of cryptocurrency in 2011, then in 2013 his idea about the project already appeared and 2015 was implemented. He won the prestigious World Technology Award, Thiel Fellowship for the project. In 2011 he with Mihai Alisie became a co-founder, editor in “Bitcoin Magazine”, in 2012 the online magazine was published in print format. 

What Is Ethereum 2.0?

A decentralized computation platform that works simultaneously on thousands of computing machines all over the world. It makes the system very flexible, there is an opportunity to make personal programs or interact with applications. It is available with the help of smart contracts that are upgraded with transactions.

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A decentralized computation platform

For the renewal of the process using a mechanism called mining with the help of the algorithm Proof of Work. The algorithm was used in 2015 because of technical availability. The original idea was to use another one – Proof of Stake, which has a lot of benefits, as no need: 

  • in advanced graphics processors;
  • in costly equipment for mining;
  • for a powerful electricity grid. 

There was a plan to transform into a model of staking. The transformation will take place when Ethereum 2.0 is released. It wouldn’t be available for mining, the speed of the transaction increased to 1000 in one second because of the solving of scalability problems. The operation of the network is available with the help of remote servers with master node software. Implementing Proof of Stake consensus allows users to participate in staking – an alternative method of mining, in which network participants are rewarded for blocking part of the tokens on their account in favor of the validation mechanism.

Goals And Stages Of Ethereum 2 0

Danny Ryan is a researcher of Ethereum, he highlights 5 most important goals for the second version: 

  1. Decentralization.
  2. Security.
  3. Simplicity.
  4. Durability.
  5. Resilience. 

The main upgrade of the project also called Eth2 or Serenity includes not only the algorithm Proof of Stake, but also Sharding, eWASM. It’s a long process with a lot of stages: 

  • beacon chain – phase 0;
  • shard chains – phase 1;
  • state execution – phase 2. 

What is important to highlight is that the second version will not replace the existing one. It will be two parallel processes with all old and new functions: mining, staking, transactions, smart contracts. Proof of Work will be replaced with time because remuneration is getting smaller and smaller. 

Ethereum 2.0 Release Date

The launching of the second version was  postponed several times because of different reasons. Only in May 2020, there was information about the presentation in June 2020. After doubts in the Internet community, it was officially announced by co-founder Vitalik Buterin. The main reason for the delay was technical problems, especially launching multiclient parts. It will allow interacting with several users at the same time. The special service YOLO helps for the synchronization of different versions of clients, it was not possible. The release date was postponed to autumn 2020. 

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Afri Schoedon About Ethereum 2.0 Date

Afri Schoedon is the pioneer of ETH2 multi-client testnets. He mentioned that with better circumstances the main network could be launched in November. Nevertheless, there was an opportunity of postponing it to 2021. It could happen if there are some significant bugs with clients or protocols.  Moreover launching is likely to happen in 2020. 

Ethereum 2.0 When The 0 Phase Will Be Launched?

Ethereum 2.0

Justin Dreik is one of the developers of the second version. He mentioned that the launching of the 0 phase will not be possible before January 2021. The co-founder of the project didn’t agree. It was also mentioned that with better circumstances it will be done in autumn 2020, approximately in October. 

How To Buy Ethereum 2.0?

The algorithm Proof of Stake will give benefits for users who already have cryptocurrency in the wallet. It’s a financial incentive for the system to work smoothly. 

To take part in placing blocks one should: 

  • be an investor;
  • have 32 coins;
  • launch a personal node (computer connected to blockchain network).

With permanent activity on the account, these conditions, a person could make a profit. According to preliminary estimates by Vitalik Buterin, it will be from 1,5 to 18% per annum depending on the amount. Some users mentioned that it will be approximately 5%. 

What Is The Ethereum 2.0 Price?

For participating in staking there should be at least 32 Ethers or ETH on the wallet. In September 2020 it was approximately 11 450 USD.  Even in July, the number of addresses with the number of Ethers was more than 100 000. 

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Is There Any Opportunity To Buy Ethereum 2.0 Now?

There is no official information on how to buy Ethereum 2.0 now but the release date is planned for autumn 2020.

The Answer To The Common Question: Where Can I Buy Ethereum 2.0?

There are a lot of platforms, ways to buy cryptocurrency but if we talk about a specific one it is especially important to know where to buy Ethereum 2.0. There are top-3 the most popular sources to do it: 

  1. eToro – technological platform plus chat for trading with the terminal implemented through a web interface. A convenient platform with a reliable reputation, round-the-clock support. Commission-Free Stock Trading. 
  2. Coinbase – exchange broker where you can buy, trade cryptocurrencies. It is one of the best brokerage exchanges on the network because it is trusted, reliable, easy to use, even for beginners. 
  3. Сoinmama – service that is available in many countries with high limits of credit/debit cards and fast, responsive customer support. The main problem is a high commission for purchases with credit/debit cards.

Conclusion

Ethereum 2.0 is a new version of cryptocurrency. The main modification is changing the algorithm  Proof of Work to Proof of Stake. The exact date of release is unknown but co-founder Vitalik Buterin said it could be in autumn 2020. To become a part of Eth2 a person should have at least 32 ETH. 
Technorely has considerable experience in work with Ethereum because it is a great, easy in developing process platform with smart contracts, with an enormous community which accompanies the creation of MVP, makes funds for STO and much more. We are always ready to help with any projects connected with Ethereum.

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