Ethereum 2.0 Is Dead, Long Live Ethereum!

The End of Ethereum 2.0?: A New Era for Ethereum!

The Ethereum network has experienced several changes after launching in 2015. It is now preparing towards Ethereum 2.0, one of the most significant evolutions in its history. However, the developers now wish to replace the term “Ethereum 2.0,” which has been previously used throughout the entire ecosystem.

The Long Awaited Update

For many years, the Ethereum network has been the birthplace of flourishing innovation. As a result, different phenomena like DeFi, ICOs, NFTs, and, more recently, the Metaverse have emerged.

On the other hand, the network is unable to keep up with the increased demand. As a result, Ethereum has been experiencing significant congestion for several months. One of the major impacts of this congestion has been a drastic increase in network prices.

Luckily, the developers have envisioned a number of advancements that will improve the network’s performance and allow it to process a higher amount of transactions without compromising the user experience.

These developments have long been referred to as Ethereum 2.0. And some of the various updates from Ethereum 2.0 are:

  • A change in the consensus mechanism (shifting from Proof of Work to Proof of Stake)
  • The deployment of sharding (horizontally splitting the database into multiple subnets to increase transactions per second)

No More “Ethereum 2.0”

The Ethereum Foundation announced the end of Ethereum 2.0 in a post published on their official blog on January 24. But no need to worry. It only refers to the terminology, not the numerous changes in this update.

As you may remember, in the previous versions of the roadmap, Ethereum had to give way to the network’s new version, which is why it was called Ethereum 2.0.

However, modifications to the roadmap have thrown the transition off track.

So, with the introduction of The Merge, which intends to unite parts of each of the two Ethereum versions, it’s no longer necessary to distinguish between them.

The Merge intends to link the “application” element of Ethereum as we know it, meaning the complete application ecosystem, to the consensus element of Ethereum 2.0 (Proof of Stake). The new consensus layer was launched in December 2020 with the Beacon Chain.

The Future of Ethereum 1.0 & Ethereum 2.0

So, due to this connection, the developers decided that instead of “Ethereum 2.0,” the different versions will be referred to as follows:

  • Ethereum 1.0: Execution Layer
  • Ethereum 2.0: Consensus Layer
  • Execution layer + Consensus layer = Ethereum.

In practice, this does not make much of a difference. However, it aids in bringing greater clarity to newcomers so they will not get confused about the relationship between Ethereum and Ethereum 2.0.

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of EGG Finance. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.