We are now witnessing the first stage of ETH 2.0 being live, bringing a lot of novelties with the introduction of the Proof-of-Stake (PoS) protocol. According to experts, the fields of decentralized finance and decentralized apps are already adapting to this new reality.
And while the Ethereum latest news show a change in the way of doing things within the ETH network, we can also notice better smart contract and tokenization capabilities. However, there are also some challenges arising from the completion of the first stage of ETH 2.0.
Namely, these include issues such as network congestion, relatively low transaction times and throughput, large blockchain size as well as excessive electricity use for mining. All of these are issues that Bitcoin also shares.
While the Bitcoin news show that BTC was created by an anonymous developer who left the network to be developed by its capable community, Ethereum was developed with a roadmap and a team behind it. That said, the ETH network is prone to challenges but progress as well, both of which are integral parts of its development.
For those of you who don’t know, Ethereum was created in several stages and most of them have been successfully implemented. In the newest upgrade called ETH 2.0, the first stage is now complete but there are still many things to be developed.
As we can see, this stage is particularly important for the network and community because it will bring about some of the biggest changes in the network. These include proof-of-stake as a protocol as well as sharding updates.
Set to launch in the second half of 2020, the first stage of ETH 2.0 is live – and we can see that two years after the official announcement about the launch (2018) and many delays after that, this phase is now called “Phase 0” which means that the first stage is done and the launch of the Beacon Chain (blockchain on which the first iteration of the proof-of-stake consensus model) will be implemented.
The second stage is called “Phase 1” and will bring the implementation of shard chains that are compatible with each other and can be used simultaneously. These two stages will build the foundation of Ethereum 2.0 and the solutions for all of the congestion and scalability issues that the network is facing.
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