30. October 2020

Ethereum 2.0: official offer of the new proof of stake algorithm

An Ethereum Foundation developer has published an algorithm proposal to change Ethereum’s consensus mechanisms.

This proposal represents a major change from standard proof of work mechanisms to proof of stake mechanisms, with the support of sharding.

This is a further step towards the highly anticipated next launch of Ethereum 2.0 by the end of the year

On Wednesday September 16, Danny Ryan, one of the main developers of the Ethereum Foundation, released the official proposal EIP-2982, anticipating the launch of Ethereum 2.0.

In this proposition, we read:

Ethereum Improvement Proposal (EIP), or the Bitcoin Capital Improvement Proposal for Phase Zero of Serenity (eth2), a major upgrade from the consensus mechanism of the Ethereum work program to the public service program at the help from sharding […]

If this proposal is approved, it paves the way for the launch of “phase zero” of Serenity. In this context, the Beacon Chain will be activated, which will use proof-of-stake (PoS).

As Beacon Chain begins with a consensual mechanism shift towards Proof of Stake, Phase 1 will also introduce some badly needed scalability solutions such as sharding (side chains). According to Ethereum 2.0 specifications, Beacon Chain will support 1,024 sharding chains, each of which is validated by a group of 128 nodes .

In recent times, the attention of the crypto space has focused on DeFi (decentralized finance) projects , as work on Ethereum 2.0 and the long-awaited transition to proof of stake takes place somewhat in the shadow

Some of the supposed benefits of this transition include reduced power consumption, greater scalability, and the various benefits of “scalability,” or scalability. This therefore implies an increased value thanks to a circulating locked supply, greater rewards for the hodlers, etc …

On August 4, the fifth and final Ethereum 2.0 testnet called Medalla was launched. Despite some obstacles along the way, Prysmatic Labs developer Raoul Jordan says he’s confident that Ethereum 2.0 will launch by the end of 2020.

In early September, Ethereum co-founder Vitalik Buterin suggested that upgrading the network to the second version would also solve the issue of high transaction fees . Some DeFi experts do not share this opinion, however .