After Bitcoin, if there is one altcoin that is leading the cryptocurrency market, it is Ethereum. In the past years, Ethereum has faced competition from different altcoins. However, with its consistent approach and dedicated team, Ethereum consistently remains one of the most trusted digital currencies worldwide.

The latest updates in the Ethereum blockchain have manifested by the name of Serenity Upgrade. While Ethereum 2.0 has created a lot of hype in the market, many people aren't aware of related technologies which denote ethusdt price. This article will explore all the information you need to know about Ethereum 2.0.

Ethereum 2.0 - What is new?

Ethereum 2.0 comes with a myriad of improvements in the construction of its network and overall operating mechanism. The most impactful strategy would be migrating its consensus mechanism from Proof of Work (PoW) to the Proof of Stake (PoS).

  • More sustainability: Ethereum 2.0 will promote sustainability by identifying the adverse environmental effects of the PoW mechanism. Previously, the PoW networks required a grid of thousands of computers that could perform billions of calculations per second. The rate of the calculation has a name, hash power, which signified the strength of the entire Ethereum network. The more the number of transactions, the more hash power is needed to complete them. These operations resulted in a high requirement for electricity generated by powerplants. Ethereum 2.0 ceases the necessity for billions of calculations which helps reduce the pollution caused by power plants.

  • Highly scalable: The old Ethereum blockchain was limited to a certain number of transactions it could process per second. With the growing user base, this throughput could cause damage to the currency's reputation. For this reason, Ethereum 2.0 implements Shard Chains to improve transactional throughput by splitting the transaction data across 64 multiple blockchains on the same network. These blockchains will have their own limitation with regards to throughput. But they can boost the transactional throughput of the entire network collectively.

  • Enhanced security: The newest Ethereum 2.0 ensures a 51% attack protection with its distribution of computations power. For any given transaction, if more than 50% of the computational responsibility is upon a large group of individuals, they can validate false transactions, thus destroying the user's trust in the blockchain mechanism. In the new update, Ethereum 2.0 makes it complicated for an attacker to purchase the network's hash power, hence securing a transaction.

Ethereum's switch to PoS - A new strategy

The new PoS model strives to incentivize transactions that build a financial stimulus among people to use the network more often. This model ensures the security of a network through verification of transactions and awarding a prize for legitimate ones and a fine for illegitimate crypto trades. 

In this new upgrade, consumers can stake a share of their coins to get approval for recent transactions. Any false transaction will result in a fine taken from the staked funds. This approach will help Ethereum get an edge over several other competitive altcoins and stay relevant in the rapidly changing marketplace.

Ethereum 2.0 - Upgrade or replacement

Any past transaction in the blockchain is immutable by definition. So, past occurrences inside the Ethereum network won't get mutated because Ethereum 2.0 adds validation for post-upgrade transactions using the new PoS consensus model. So, in this regard, the 2.0 upgrade is not truly a replacement for the old Ethereum network.

Future Developments - Phase 2 & 3

The future development of the Ethereum 2.0 network is promising, as it will merge the Beacon Chain and the existing Ethereum chain in Phase 2. You can expect to see this update thoroughly implemented by the end of 2022. The 3rd phase will introduce shard chains into the network to finalize the transition to Ethereum 2.0. But that must take a while, as per the news.

Wrapping up

The new Ethereum 2.0 upgrade means a lot to the consumers as the number of transactions increases with a 51% decline in the probability of a cyber attack. What is more, this secure platform will have a less environmental impact, i.e., it will reduce the carbon footprint for each transaction. The Casper Protocol for implementing the PoS can positively influence the coin's demand in the digital marketplace, which can increase Ethereum's value worldwide.