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ETH2 for Dummies... for Dummies
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ETH2 for Dummies... for Dummies
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Highlights and notes from âETH2⊠For Dummiesâ by @gphummer, with some of my own updates. https://medium.com/@chromaticcapital/eth2-for-dummies-11ff9b11509f
Ethereum today is slow...
The network is limited to 15 transactions per second.
Visa does thousands per second.
The network is limited to 15 transactions per second.
Visa does thousands per second.
Ethereum today is expensive...
Every node (computer on the network) has to run every piece of computation on the network to ensure all participants obey the rules.
It's a global and diverse network with high communication latencies and differing computing capabilities.
Every node (computer on the network) has to run every piece of computation on the network to ensure all participants obey the rules.
It's a global and diverse network with high communication latencies and differing computing capabilities.
What if there was a better way?
What if we could build a blockchain where every node *didn't* have to process every other node's transaction?
What if we could reduce costs by instead processing only a small subset of the entire network's transactions?
What if we could build a blockchain where every node *didn't* have to process every other node's transaction?
What if we could reduce costs by instead processing only a small subset of the entire network's transactions?
Enter ETH2
The goal of ETH2, an entirely different project from ETH1, is to improve the scalability, security, and programmability of Ethereum.
The goal of ETH2, an entirely different project from ETH1, is to improve the scalability, security, and programmability of Ethereum.
ETH2 is scalable
We're talking thousands to tens of thousands of transactions per second (or maybe more!) without compromising on decentralization.
We're talking thousands to tens of thousands of transactions per second (or maybe more!) without compromising on decentralization.
ETH2 is secure
ETH2 will introduce a more economically secure consensus mechanism called Proof-of-Stake (PoS), in contrast to the Proof-of-Work (PoW) system thatâs currently used in bitcoin and ETH1.
ETH2 will introduce a more economically secure consensus mechanism called Proof-of-Stake (PoS), in contrast to the Proof-of-Work (PoW) system thatâs currently used in bitcoin and ETH1.
In a traditional PoW blockchain (like bitcoin), new bitcoins are minted and transactions are processed by miners, individuals and institutions who use expensive hardware to solve very difficult math puzzles.
In a PoS blockchain (like ETH2), by contrast, new ether is minted and transactions are processed by validators, who provide security to the network by locking up their ether.
If a validator misbehaves (e.g., by approving a malicious transaction), their ether can be slashed. This slashing mechanism gives validators a large incentive to follow the rules of the protocol.
ETH2 is programmable
ETH2 will enable developers to create their own transaction processing methods called execution environments.
ETH2 will enable people to use #Bitcoin
âs rules for transacting, #ZCashâs rules, ETH1âs rules, and many other conceivable rulesets.
ETH2 will enable developers to create their own transaction processing methods called execution environments.
ETH2 will enable people to use #Bitcoin
âs rules for transacting, #ZCashâs rules, ETH1âs rules, and many other conceivable rulesets.
But... how?
ETH2 will achieve all this with what are called shards.
Each shard will be akin to a blockchain with its own unique block producers and validators, but it will be able to talk to the other shards, thereby forming a large network of shard chains.
ETH2 will achieve all this with what are called shards.
Each shard will be akin to a blockchain with its own unique block producers and validators, but it will be able to talk to the other shards, thereby forming a large network of shard chains.
Instead of having to process every transaction in the entire network, a validator on ETH2 will only need to verify the transactions of a single shard.
Each shard will share the same security as every other shard. To break a single shard, you'd have to break the entire system.
Each shard will share the same security as every other shard. To break a single shard, you'd have to break the entire system.
Who's working on it?
ETH2 is being built by many different teams funded by grants from @ethereum and supported by the broader community.
They're building clients â similar to a web browser, except instead of accessing websites, itâs accessing/participating in the ETH2 network.
ETH2 is being built by many different teams funded by grants from @ethereum and supported by the broader community.
They're building clients â similar to a web browser, except instead of accessing websites, itâs accessing/participating in the ETH2 network.
When?
Phase 0 *should* ship by the end of this year.
Phase 0 launches the beacon chain and PoS validation on the beacon chain.
ETH1 will continue to operate as normal, in parallel.
Phase 0 *should* ship by the end of this year.
Phase 0 launches the beacon chain and PoS validation on the beacon chain.
ETH1 will continue to operate as normal, in parallel.
They just announced a final testnet called "Medalla" will launch on August 4th. https://www.coindesk.com/ethereum-2-0-developers-announce-final-testnet-before-network-launch
Make sure you're prepared like @SomerEsat? https://medium.com/@SomerEsat/confessions-of-an-etheruem-staker-e5a23f46efa2
And next year we're expecting Phase 1
Phase 1 launches shard chains and allows data to be stored on those shard chains, but does not process transactions on the shards
ETH1 either continues as normal or gets merged into ETH2 as a special shard.
Phase 1 launches shard chains and allows data to be stored on those shard chains, but does not process transactions on the shards
ETH1 either continues as normal or gets merged into ETH2 as a special shard.
Phase 2 - Shipping in 2022?
Phase 2 enables transaction processing on the shards.
After a period of time, ETH1 transitions into ETH2 as a separate shard.
Phase 2 enables transaction processing on the shards.
After a period of time, ETH1 transitions into ETH2 as a separate shard.
And then...?
Ethereum will continue to evolve, but it's less clear.
Some possible directions include using ZK-SNARKs for scalability, further development of light clients, quadratic sharding (shards within shards), and in the far future, abstracting shards themselves
Ethereum will continue to evolve, but it's less clear.
Some possible directions include using ZK-SNARKs for scalability, further development of light clients, quadratic sharding (shards within shards), and in the far future, abstracting shards themselves
The future looks bright for Ethereum
Ethereum is on the cusp of the biggest and most important upgrade it will probably ever undergo. An upgrade that, if successfully implemented, will create massive amounts of value for the world.
Ethereum is on the cusp of the biggest and most important upgrade it will probably ever undergo. An upgrade that, if successfully implemented, will create massive amounts of value for the world.
There are no other smart contract blockchains with anywhere near the critical mass of researchers, developers, users and projects that Ethereum has.
Thereâs no better time to get involved.
Thereâs no better time to get involved.
