Ethereum, which is indispensable for cryptocurrency miners, is starting a new era. The Ethereum 2.0 update, which has been on the agenda for a while, has finally taken place.
Making a statement on the subject, Ethereum developers underlined that the upgrade will make the Ethereum network more secure and scalable, which hosts an ecosystem of $ 60 billion cryptocurrency exchanges, NFT markets and other applications.
Is Ethereum mining over? Ethereum 2.0 has been updated
Justin Drake, a researcher at the Ethereum Foundation, said, “The metaphor I use has a similar effect to replacing an engine in a running car. You can think of it like the transition of a vehicle from a gasoline engine to an electric engine.” said. Stating that Ethereum will consume 99.9 percent less energy, the authorities announced that they have come a long way in terms of efficiency.
One of the most important developments in the cryptocurrency market, the Ethereum revision consists of the merging of the ETH1 and ETH2 blockchains. Ethereum, which was traded on two different blockchains as Proof of Work (proof of work) and Proof of Stake (proof of stake) in December 2020, will continue with a unified blockchain running on the proof-of-stake protocol.
The Proof of Stake system, also known as proof-of-stake, requires crypto assets to verify transactions. In cryptocurrencies built on proof-of-stake, users must lock a certain amount of crypto in order to earn rewards. In the Proof of Work system, which is defined as proof of work, users win awards by solving some complex mathematical problems with hardware.
Arrest warrant for Terra (LUNA) founder!
An arrest warrant has been issued for Do Kwon, founder of Terraform Labs, following an investigation into his ecosystem, which has lost $40 billion in value.
The Ethereum Foundation also asked users to call the Ethereum Mainnet, which is built on proof of work, the “executive layer” instead of ETH1, and the Beacon Chain, which is built on proof-of-stake, as the “consensus layer” instead of ETH2. Although users use the term Ethereum 2.0, there is no such term in the Ethereum Foundation’s terminology.
Broadcasting live on YouTube, the team held an “Ethereum Mainnet Merge View Party” with more than 41 thousand viewers. This merger, which greatly reduced the Ethereum network’s dependence on cryptocurrency mining, had a wide impact in the cryptocurrency market.
What awaits us with the Ethereum 2.0 update?
Within minutes of the merger, Ethereum, with its current market cap of close to $200 billion, became the second largest cryptocurrency after Bitcoin (BTC). After the transaction, Ethereum’s pricing fluctuated.
Authorities announced that transaction times will also shorten after the merge. As part of the proof-of-work, Ethereum can create a block every 13.36 seconds. After merging, a new block will be able to be created every 12 seconds. Compared to the previous version, about 10 percent faster processing can be done.
Ethereum miners will no longer be able to help secure the network after the merger and therefore will no longer be able to earn block rewards. It is speculated that some miners will switch to other GPU-mined proof-of-work coins like Ethereum Classic (ETC) and Ravencoin. It also focuses on the possibility of a proof-of-work Ethereum fork that will allow miners to continue their activities.
Ethereum holders will deposit at least 32 Ethereums to activate their validators. Users will be able to earn a high amount of income from verification processes.