The development team of Prysmatic Labs (developers of ethereum) announced on May 7, 2019 the launch of ethereum 2.0 (functional test phase) which is a multi-year effort to create a fully decentralized platform without permits for such cryptocurrency. Its objective is to be a complete update of the blockchain of the current proof of work of ethereum and to provide a significant increase in the security, scalability and decentralization of the platform.

As we saw in our previous article titled what is ethereum? Know more about this cryptocurrency, ethereum is a blockchain protocol that was conceived with the idea of improving some aspects of bitcoin technology, including the possibility of setting withdrawal limits, generating financial contracts, maintaining custody over the blockchain (chain of transactions), among other additional functions (the most prominent and representative are the smart contracts).

What is Ethereum 2.0?

Ethereum 2.0 is a new blockchain, which means that it will not update as a big fork in the existing chain. Instead, the value will be transferred from the work test chain through an smart contract deposit (one way). Users can deposit 3.2 ETH from the Goerli test network to become validators in the new system, which participates in the participation consensus test to obtain returns on their deposit.

Taken from: Medium y Hsiao-Wei Wang

Ethereum 2.0 life cycle

Throughout the life cycle of each validator, the rewards will accumulate and penalties will be applied based on their behavior. The protocol favors “life”, that is, the chain can continue even if a large number of validators are offline, although being out of line will cause the deposits to be penalized and the affected individuals to lose capital.

A central concept of ethereum 2.0 is the idea of ​​fragments, which are individual chains that manage contracts, transactions and intelligent states. These fragments are coordinated by a “root chain”, known as the “beacon chain”, which is what phase 0 of ethereum 2.0 implements. Having fragments allows the horizontal scalability of the system, since transactions can be processed in parallel compared to the current ethereum work test chain.

The Prysmatic Labs team emphasized that, while this is a test network, it is not a simulation, so users are using a fully functional tool which can help them understand the functioning of ethereum 2.0

For more details you can visit the publication of Prysmatic Labs at the following link.

What is your opinion about ethereum 2.0? What do you think about its improvements?

If you have any questions or queries you can contact us or write your question in the bottom part (comments section).

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