, a year ago
Ethereum’s beacon chain started In December 2020, and while many saw this as the start of Ethereum 2.0, it was, in fact, only the beginning. Ethereum 2.0 is not just an upgrade but a careful and slow transition between the “old” blockchain commonly called ETH1 and the brand new ETH2 blockchain that will introduce proof of stake.
How far along is Ethereum 2.0, and when will we witness the final act of Ethereum’s year-long journey towards a new consensus model and sharding?
The last upgrade for Ethereum was called London and happened at the beginning of August this year. London introduced EIP-1559 which changed the fee structure of Ethereum. While London was preparing ETH1, the next upgrade, which is called Altair, will prepare ETH2.
The beacon chain is already running and works completely apart from ETH1, the de facto Ethereum blockchain. At some point, both have to merge, and during that process, there will be an assignment of new roles. The beacon chain (ETH2) will become the new consensus layer, and the current blockchain (ETH1) will become the execution layer.
Altair is an important milestone before starting the merger and reaching the first and maybe most important step of shifting Ethereum from proof of work towards proof of stake.
Altair is expected to start on October 27th at epoch 74240 and will also introduce EIP-2982. Ethereum 2.0 will depend on so-called validators, which will each have to lock 32 Ether to participate in that role and validate transactions. In return, validators will receive a reward similar to the miners. But what if a validator is playing unfair or is inactive?
To make sure that nobody is leaving their post, EIP-2982 is introducing slashing. Slashing will punish dishonest validators and reinsure that receiving a reward is not the only incentive. With slashing, all validators also have skin in the game because they now even lose money if they choose to act maliciously.
With Altair starting at the end of October, it is expected that the merge between ETH1 and ETH2 could happen as early as Q1 2022. A successful kickstart of proof of stake would be very bullish for Ethereum, but not the end of the journey.
It would still require a lot of time to introduce sharding and activate the first 64 shards. Each shard will run its applications and interact with the consensus layer, which will increase the transactions throughput and speed. Developing and testing could take until the year 2023.
So, is Ethereum 2.0 coming? Yes, it is, but it will take some time until it’s fully finished.
Feb 10, 2023
Ethereum is the second biggest cryptocurrency next to Bitcoin according to its market cap. It is also the biggest smart contract in the world according to the number of live protocols, user base, and the total value locked in its DeFi applications. Such as NFTs, lending, and decentralized exchanges. Needless to say, Ethereum is one of the most important technologies in the whole crypto industry. When asking for an Ethereum price prediction, it is this status that has to be taken into account. Please note that none of the Ethereum price predictions constitute financial advice, but rather try to forecast fundamental developments with the data that is available in 2023.
Nov 28, 2022
After the successful Ethereum Merge, a potential censorship issue has crept up on Ethereum. In the new block production architecture, an increasing number of transaction blocks is being built by an organization called Flashbots. This organization has chosen to be compliant with the sanctions list of the American OFAC. This poses a risk of censorship on the protocol level of Ethereum. Flashbots is aware of this and has proposed a solution.
Aug 29, 2022
Is most of the value in the crypto world going to be in the base layer? In other words, the blockchains like Ethereum and Bitcoin? Or will the applications built on them be the winners? Think Uniswap or Aave. This is the main question many followers of crypto are asking.
Aug 04, 2022
With the Ethereum Merge coming up, it's good to learn about the bigger picture: the roadmap. What are the next steps of Ethereum's upgrades and what is the end goal? In short: 100,000 transactions per second, without giving up decentralization. Founder Vitalik outlined the entire roadmap recently. Spoiler: every step rhymes with Merge....
Sign up to stay informed via our email updates