Ethereum 2.0 is the long-awaited upgrade to the Ethereum network that will enable it to process more transactions per second and improve its scalability. Currently, the Ethereum network can only process around 15 transactions per second, which is not enough for large-scale applications.
Ethereum 2.0 will increase this to around 100,000 transactions per second by using a technique called sharding.
Sharding is a way of horizontally scaling a database by splitting it into multiple partitions, or shards. Each shard can be stored on a different server, and each server can process a different subset of transactions.
This way, the overall network can process many more transactions than it could if it were just one centralized database.
Ethereum 2.0 will also improve the security of the network by moving from a proof-of-work (PoW) consensus algorithm to a proof-of-stake (PoS) algorithm.
Under PoW, miners compete against each other to validate blocks of transactions and are rewarded with ETH for their efforts. However, this system is very resource-intensive and has led to concerns about centralization as large mining pools have been able to control a significant proportion of the network’s hash power.
Under PoS,validators stake their ETH in order to validate blocks of transactions. The more ETH they stake, the more likely they are to be chosen as a validator.
If they act maliciously or fail to validate correctly, they stand to lose their staked ETH. This should incentivize validators to act in the best interests of the network and help to improve its security.0 is an ambitious upgrade that promises to improve the scalability and security of the Ethereum network.
It remains to be seen whether it will be able to deliver on its promises, but if it does, it could usher in a new era of decentralized applications built on Ethereum.