There is a lot of hype around Eth 2.0 which will be launched shortly. What are you thought about Eth 2.0? What would be the benefits and What the good and bad points of it? Thanks
Since its launch in 2015, Ethereum has grown to become the most used programmable blockchain in the world. Who knows, maybe it even exceeded the original expectations of Vitalik Buterin, the originator of the project?
Only that Ethereum became a victim of its success in 2017. The interest was so great that the network started to clog (the same thing happened in Bitcoin's blockchain). The programmers decided to act: to improve the scalability so that the network could reach its full potential.
Ethereum can only handle about 15 transactions per second. For comparison, Visa processes about 1500, and the mining - that is, the verification of these transactions - is energy intensive. This is a general disadvantage of proof-of-work block chains, which require the digging process to be energy-intensive for safety reasons. The point is that the cost of a 51 percent attack on the network is so high that it will not pay off to anyone in practice.
However, the Ethereum must be scaled and still secure and decentralized. It turns out that this is real.
Ethereum 2.0. is designed to remain scalable, but without losing efficiency, security or decentralization (which is no longer so obvious). How? It is about the new features that will be introduced.
The biggest problem with which ethereum is measured is scalability. This cryptocurrency network is able to process on average about 20-25 transactions per second. The solution that developers have decided to improve this parameter is sharding. It is a kind of partitioning large databases into smaller segments, which are easier to manage.
Currently ethereum uses a proof-of-work algorithm, and the developers' goal is to switch to a proof-of-stake algorithm called Casper. The advantage of the proof-of-stake algorithm is the reduction of energy consumption and lower costs associated with the equipment necessary to validate transactions in the network. A smaller entry barrier also means the possibility of greater decentralization. We are also not very much dependent on the electricity price. In the case of proof-of-work, the largest clusters of nodes are located in places where we have the cheapest electricity and access to mining equipment. Critics believe, however, that due to considerable requirements related to the use of this algorithm, it is much more secure and the amount of energy that has to be used to earn a certain amount of cryptocurrency in the long term is also reflected in its value.
Ethereum virtual machine is an environment for creating intelligent contracts that is composed of nodes, each of which has the same set of rules implemented and is capable of processing different programming languages. The way it currently works also limits scaling possibilities and network capacity. The changes will be introduced in such a way as to remove the limitations related to its current mechanism of operation.