Ethereum has consistently followed the roadmap of continuous development into a consensus-proofing stakeholder consensus protocol, and the foundation for Ethereum 2.0 was firmly laid in 2020. The smart contract blockchain chain has established itself as a platform backed by the world’s second most valuable digital currency, Ether (ETH), and has become a resource. The lead for developers to build blockchain-based apps and tools.
The emergence of the decentralized financial sector has been largely built on the Ethereum blockchain, which has increased confidence in the platform’s decentralized functions. However, the increase in blockchain use is costly, as network speed and transaction costs directly depend on how more users and platforms are added to the blockchain. This is the driving force behind the transition to Eth2, which has already begun.
There seems to be many positive emotions regarding the ongoing transition to Eth2 in 2020, and there is a feeling of great anticipation for the project at the start of the new year. So what are the main hopes for the next step in Ethereum development in 2021?
Ethereum 2.0 is the next step in the blockchain transition from proof of working consensus protocol to proof of spelling algorithm. It is an integral part of Ethereum development and aims to make the blockchain more scalable, secure, and resilient. The goal is to support thousands of transactions per second to make apps faster and cheaper to use.
Security is one of the biggest concerns, and the move to verification of ownership should ensure that the protocol is more secure against all forms of attack. Last but not least, the transition from PoW has been incorporated into reducing the environmental impact of the Ethereum network. The network in its current state requires a great deal of computing power and capacity to remain stable.
The first stage is Beacon Chain, which is responsible for implementing PoS in the protocol and was launched on December 1, 2020. Eth2 users can now place ETH games and switch to a network checker. To become a complete validator, users must share 32 ETH and walk how these users handle transactions and create new blocks in the chain. This is seen as the future of Ethereum network security and will eventually replace the current energy-efficient PoW compatibility mechanism.
The next step in the Bacon series launch will be the launch of the Cut Chains, which is scheduled to take place sometime this year. Without going into details, segmentation allows you to split up the database to distribute the workload. Ethereum will use shear chains to reduce network congestion and increase transaction speeds. It will also greatly reduce the hardware requirements for running the site. It is planned to make 64 series of fragments.
The beacon chain will eventually assign specific chains of sectors to different validators who will distribute the work required to validate the Ethereum blockchain. The first iteration of these insertion strings does not handle transactions or smart contracts, but rather stores and manages data in the network.
The long-term goal is to combine segments with entanglements, which essentially merge off-chain transactions to send them back to the main network. This should greatly improve Ethereum’s transaction processing capabilities.
Vote for confidence
Cointelegraph reached out to more people before the continued development of Ethereum. Ben Edgington, the principal owner of Teku, the Eth2 client that ConsenSys has created for corporate and institutional investors, has been directly involved in the research and development of Eth2.
The main topic of conversation regarding the ongoing transition to Eth2 has been the amount of ETH negotiated in the Beacon Chain contract. Edgington told Cointelegraph that the community’s desire to participate in the effort has been very positive for developers:
“The amount of ETH already invested is a huge vote of confidence not only for Beacon Chain, but also for the future of Ethereum. I admire how much has been achieved so quickly and are very excited about the Ethereum community’s commitment to what we’ve created and will continue to build.”
Edgington added that the launch of Beacon Chain was undoubtedly the most challenging part of the Eth2 Project and a major milestone that gave confidence to the upcoming milestones on Ethereum’s journey.
Victor Bonin, protocol specialist at Bison Trails, blockchain infrastructure provider, told Cointelegraph that the current ETH rate shows that the community will actively support the protocol in the future, adding:
“I was surprised that the supply of money is still very large, and I think there is a chance that the waiting list to enter Eth2 will not dry up during 2021, which means that you should always wait for the auditor to join the networks because so many people are trying to join at the same time.”