Ethereum 2.0 what’s new?
Throughout the years bitcoin has gained much popularity among people. But many experts suggest although it is the first ever crypto coin, this popularity is not going to last forever. With the advancement of technologies Bitcoin has already started showing its limitation a few years back. Some of the inherent problems are already getting addressed by the alternative cryptocurrencies that have been in the cryptomarket for quite some time but none of them have been able to reach the height that Bitcoin has captured yet.
On the other hand, ethereum can be considered a notable exception when it comes to creating comparison of growth. With the optimal feature it provides, Ethreum has been able to compete with bitcoin on a large scale. But to achieve absolute dominance in the market of crypto currency, it needs to fix the existing issues that are holding back Ethereum to achieve its potential. With the Ethereum 2.0 update the developers of Ethereum want to accomplish things which they have not been to yet. In this article we are going to discuss the details on Ethereum 2.0.
One of the major reasons the early cryptocurrencies were facing performance issues was proof of work. These coins were relying on a processing-power-intensive process (proof of work) to record and validate transactions on blockchain. In this system the computer nodes compete to generate cryptographic hashes that gratify a network-determined level of complexity.
The design of the proof of work system is terribly inefficient. And Ethereum 2.0 is going to solve that issue. Ethreum 2.0 will bring a more efficient proof of stake system. In the new system, an algorithm will choose the node that is going to record all the transactions. This will significantly reduce the complexity of the cryptographic work and the output will be much more fruitful.
To improve the overall stability and scalability, Ethereum 2.0 is now introducing a processing method termed as Sharding. In this process the system will deliver particular tasks to particular nodes and all of them will be single handedly responsible for that. Through this method parallel processing will be utilized making the total processing more efficient and faster than the previous proof of stake method.
If these stages can successfully pass on without any complexities, Ethereum 2.0 can potentially be at Bitcoins in terms of security, stability, scalability and usage. With this update Ethereum can become far more valuable than Bitcoin.