Ethereum 2.0 Release Date and Features

Ethereum 2.0 upgrades are currently being implemented gradually and will ultimately lead to the transition from proof-of-work (PoW) to proof-of-stake (PoS) consensus algorithm.

This update to Ethereum will promote greater scalability and lower fees while also introducing Shard Chains, which greatly accelerate transaction speeds.

Phase 1

ETH2 is an upgrade to Ethereum designed to make the network faster, more secure, sustainable and accessible to new users. The switch from proof-of-work to proof-of-stake will lower energy consumption while simultaneously decreasing gas costs.

One of the key changes is Sharding, which allows shard chains to run simultaneously for faster transaction speeds and reduced gas fees. Shards are an efficient method to break up large volumes of data into manageable chunks for search engine use.

Once sharding is underway, the network can scale to more than 100,000 transactions per second, lowering fees during peak transaction periods while providing a faster platform for decentralized apps (dApps).

ETH2 will introduce eWASM, a deterministic subset of WebAssembly that speeds code compiling for smart contracts running Ethereum more efficiently. Furthermore, it makes the network compatible with more traditional programming languages like C and C++.

ETH2 will go beyond simple sharding by also introducing the beacon chain, a central blockchain designed to ensure integrity across its shard chains as well as consensus across its entire network.

Phase I of the ETH2 upgrade will likely launch in 2020 and, once complete, merge between current Ethereum mainnet and Beacon Chain will occur sometime around 2022, marking the beginning of Ethereum’s shift from proof-of-work system to proof-of-stake system.

Staking will be one of the core features of Beacon Chain, allowing users to stake ether tokens into a pool that secures and validates transactions on the network. Staking will help reduce energy use while improving its scalability.

Though this change to Ethereum will be significant, its effects are unlikely to have an immediate effect on its price; rather it could have long-term ramifications on it and help newcomers understand its financial benefits. Staking is also expected to facilitate increased participation by individuals and corporations who previously haven’t participated in crypto.

Phase 2

Ethereum 2.0 refers to an upgrade coming to the blockchain network that will see a shift from PoW consensus mechanisms to energy-saving Proof of Stake (PoS), while also including Sharding capabilities to increase bandwidth while decreasing gas costs.

As with the original Ethereum, Ethereum 2.0 will be implemented gradually over time, beginning with Phase 0. On 1 December 2020, Phase 0 should begin and the Beacon Chain is scheduled to launch as the core network connecting all shards on the network together; additionally it will communicate with proof-of-stake shard chains which host transactions and data storage on them.

The Merge will merge the Beacon Chain with the mainnet, transitioning away from mining towards PoS consensus algorithms and officially marking an end to mining on the network.

As part of this transition, validators will be able to join staking pools to earn rewards from their staked ETH tokens and increase participation by participating in verifying transactions on Ethereum, earning their fair share of network rewards in return.

However, it should be remembered that these changes will require considerable time and effort from developers. Furthermore, according to Ethereum founder Vitalik Buterin many may not fully be implemented until 2022.

Phase 0 will also mark the launch of Beacon Chain, with validators starting to sign one-way deposit contracts and deposit 32 ETH in their accounts for stakeholding purposes before release at Phase 1.

Once Beacon Chain launches, users will be able to stake their ETH tokens in staking pools to help secure its network. Staking pools will be easy for holders to join, offering incentives in return for their participation and increasing scalability and resilience against attacks.

Phase 3

Ethereum 2.0 is a series of upgrades intended to increase scalability, security and sustainability of Ethereum blockchain technology. These updates will allow it to handle more transactions quickly while decreasing gas fees and improving smart contract stability.

At present, Ethereum can only process 12 to 25 transactions per second (tps), with an average confirmation time of 6 minutes – making it difficult to use for smaller transactions with high gas fees.

This upgrade aims to raise the tps cap to 100,000, enabling users to transfer large amounts of cryptocurrency more efficiently with lower gas fees, while helping the community create cost-efficient applications.

Rollup and sharding technologies will also allow the network to handle more data, helping reduce transaction times while expanding capacity by up to ten-fold.

Increased smart contract reliability will allow for more complex, stable, and secure smart contracts to be created by developers of decentralized applications and smart contracts, making their creation simpler for everyone involved.

State expiration is another key feature of the upcoming upgrade, designed to purge any parts of a state which have not been utilized within a specified time period and reduce storage requirements of nodes. Validators will benefit by having less data to store on their machines and nodes will save space by not needing as much storage capacity.

As part of this update, a proof-of-stake (PoS) consensus algorithm will be introduced, replacing the current Proof-of-Work model and fundamentally altering how Ethereum operates as a network.

PoS will make developing and distributing NFTs more cost-effective for dApp developers, as it will allow them to mint tokens at significantly reduced costs than with previous versions of the network. Furthermore, this system should require less energy consumption during operations.

As part of these upgrades, the network will implement eWASM – an open-source virtual machine based on World Wide Web standards – which will support Ethereum lite clients directly within browsers as well as simplify development of DApps and smart contracts on Ethereum blockchain.

Phase 4

Ethereum stands as one of the premier cryptocurrencies and platforms, boasting an active community and being led by Vitalik Buterin who is known for creating cutting-edge technology in this space. Buterin and his fellow Ethereum developers strive to improve the platform to make it more scalable, secure and sustainable over time.

This upgrade aims to increase capacity and speed while making the network more energy-efficient, which will allow Ethereum network to handle more transactions per second than it currently does, thus processing more data and meeting more use cases.

To meet this objective, Ethereum 2.0 network will implement sharding. Sharding is a widely-used technique in databases and search engines to break up large volumes of information into manageable pieces that enable systems to operate more quickly.

Sharding will also serve to enhance security on Ethereum while decreasing gas costs which currently represent such a significant expense for current networks.

Once sharding is introduced to the Ethereum network, it will spread load across 64 new chains, significantly increasing capacity and making the network much more scalable. Unfortunately, however, implementation and testing will take some time.

Eventually, shard chains will merge with the existing network to form the official ETH2 blockchain – this may occur between late 2021-2022 as part of a hard fork event.

This will be an essential upgrade for the Ethereum network, introducing many exciting new features – from Sharding and FPC to an improved cryptographic battery that will protect against future attacks.

Proof of stake will allow a new type of consensus, where ETH holders become validator nodes and receive a share of network rewards as a reward for acting as validators nodes.

Buterin explains that staking can also help bring newcomers into the Ethereum ecosystem, especially those unfamiliar with cryptocurrencies and digital assets. Once people understand its benefits and see its potential use cases, they will likely invest more of their funds.