Crypto

Is Ethereum 2.0 a new coin and will the current ETH still exist?

Long planned upgrade to Ethereum the network begins to materialize. In 2020, the first stage of a new Ethereum 2.0also called Eth2 or “Serenity” was released with the full rollout of the new blockchain slated for the period between 2022 and 2024. Many investors in Ethereum want to know if Ethereum 2.0 is the new coin. What will happen to their current ETH assets?

Ethereum has evolved since its inception, especially in the early days. Whether it’s hard forks, airdrops, ICOs, packaged tokens or token migrations, it’s clear that Ethereum token holders are wondering about new crypto blockchain efforts.

What is Ethereum 2.0?

With a focus on the consensus mechanism, scalability and security, Ethereum 2.0 appears to be a robust and revolutionary upgrade. Ethereum 2.0 will use the concept of PoS (Proof-of-Stake) instead of the traditional PoW (Proof-of-Work).

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Ethereum and Ethereum

Source: Pixabay

PoW systems can be energy intensive. Miners use computer hardware processing to solve math problems and validate new transactions. When a miner solves a puzzle for the first time, he adds a new transaction to the record of all transactions in the blockchain. They are then rewarded with crypto coins.

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in PoS systems, transaction validators use cryptography to verify a transaction. Validators offer blocking based on the amount of cryptocurrency they hold and the length of the holding. Then other validators confirm that they saw the block. When there are enough acknowledgments, the block can be implemented on the blockchain. Validators are rewarded with cryptocurrencies for successfully proposing a block, a process known as “counterfeiting” or “coinage”.

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Since PoS is more energy efficient, it is more scalable. The original Ethereum blockchain can support no more than 30 transactions per second. However, Ethereum 2.0 promised up to 100,000 transactions per second through the use of chunk chains.

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