The beginning of 2022 saw the crypto market shed about USD 1 trillion and gave the investors sleepless nights. That said, investors know that it is just a phase and that the market will snap back to its previous high with time.
Among the most popular coin trades, Ethereum ranks second with a market cap of about $468 billion. As trading scaled, the crypto faces specific issues such as congestion, high gas fees, and scalability. The Ethereum 2.0 was designed to correct these issues and give trades more for their money. These are the features and advantages of the latest Ethereum coins.
Increased awareness has resulted in over 46 million Americans already using crypto and more joining the troves every day. Ethereum faces scalability issues with such numbers as its networks could only handle so much.
The switch from Proof of Work (PoW) to Proof of Stake (PoS) made the system do more within the same amount of computational power. The transition can create a crypto history and inspire other blockchains to follow suit.
Lower Hardware Costs for Miners
Ethereum’s PoW mechanism needed miners to use high energy to solve the computational puzzles, and the hardware required also cost a substantial amount. They use the machine’s computational problems to solve complex mathematical problems and get rewarded with the network’s native currency.
The advantage that PoS provides is that it delinks high-energy using computing from a consensus algorithm, making it more efficient.
Investors lost about $14 billion in 2021 for crypto scams. The success of crypto led to many Ponzi schemes claiming to offer high and quick returns, which made many investors gullible targets. They would push buyers to purchase tokens with promises of a guaranteed increase in value. These scammers would hold most of the tokens and sell as the market peaked due to a sudden rush in demand.
With at least 16,384 validators required, the latest version of Ethereum 2.0 ensures that the system is more decentralized and highly secure. The blockchain has outsourced its security audits to Quantstamp and Least Authority firms. They will look into the problems arising from fuzzing, hunting, bounty, pager duty, applied cryptanalysis, crypto-economic modeling, and formal verification.
The currency is set to roll out its newer version in phases, ensuring that any issues are addressed initially before it is too late. Phase 0 was launched on December 1, 2020, and saw the implementation of the Beacon chain. Phase 1 will launch in Q1 or Q2 of 2022 and help merge the mainnet with the Beacon chain.
At this stage, users will be assigned validator roles as they stake Ethereum in the Beacon chain. Shard Chain will be introduced in phase 3. The blockchain plans to enable 64 shards to handle about 64 times the throughput than the previous version.
The crypto ecosystem needs a constant overhaul due to the drastic increase in transactions within a short time. Ethereum 2.0 is one stem that the blockchain has taken to make it more scalable, secure, and cost-effective for miners and investors.