What is Ethereum 2.0 And Why Does it Matter | Ethereum vs Ethereum 2.0 Explained

welcome to whiteboard programming where we simplify programming with easy to understand whiteboard   videos and today i'll be sharing with you what 
is ethereum 2.0 and why does it matter so let's   get started ethereum 2.0 is an upgrade 
to already existing ethereum blockchain   and aims to increase the speed, efficiency and 
scalability of the ethereum blockchain network   enabling it to address the bottlenecks 
and increase the number of transactions   processed per second ethereum 2.0 has some 
fundamental changes in its structure and design   as compared to its previous version the two 
major changes are proof of stake and sharding   let's look at both of these terms to understand 
the functioning of ethereum 2.0 so what is   proof of stake well proof of stake is a consensus 
mechanism where cryptocurrency miners can mine or   validate block transactions based on the amount of 
cryptocurrency a miner holds it was created as an   alternative to proof of work which is the original 
consensus algorithm in the blockchain technology   and is used to confirm transactions and add new 
blocks to the chain as proof of work requires huge   amount of energy and eventually leads to miners 
needing to sell their own coins to pay the bill   proof of stake is something which gives mining 
power based on the percentage of coins held by   a miner which is somewhat handy and doable next 
let's discuss what is sharding first off the word   shard means a small part of a whole hence sharding 
means dividing a larger part into smaller parts   and in blockchain sharding technique is used to 
achieve scalability within the blockchain network   it is the process of splitting one blockchain into 
multiple blockchains known as shards which makes   the entire network more efficient as now a single 
validator does not have to handle workload alone   and every validator maintains information related 
to their respective shards these validators are   also occasionally shuffled between the shards 
to avoid any kind of manipulation and the   beacon chain is something which is used for the 
communication and coordination of these shards   next let's discuss what is the difference 
between ethereum and ethereum 2.0 well the major   difference between ethereum 2.0 and ethereum is in 
the consensus mechanisms which they use ethereum   uses proof of work while ethereum 2.0 uses proof 
of stake mechanism and as proof of stake is more   energy efficient mechanism as compared to 
proof of work it uses less computing power   to secure a blockchain making it more favorable 
next how will ethereum 2.0 be more secure many   people are asking this well the most important 
advantage of ethereum 2.0 is its scalability   ethereum 2.0 will have shard chains due to which 
it can conduct up to 10,000 transactions per   second whereas ethereum currently supports only 30 
transactions per second also you'll be able to say   goodbye to a lot of delays and network congestion 
which you see in the ethereum blockchain and these   will be eradicated to a certain extent in the case 
of ethereum 2.0 the implementation of shard chains   speed up the network and can help in scaling it 
more easily as the transactions are handled in   parallel chains instead of the consecutive ones 
and the main idea behind devising an upgrade to   existing ethereum is to exercise more safety in 
the entire transaction as many proof of stake   networks have a very small set of validators 
this accounts to decrease network security   further as ethereum 2.0 requires large set of 
validators it makes it more decentralized, secure,   and less prone to manipulation lastly let's ask 
what does the future of ethereum 2.0 look like   well ethereum is the largest general 
purpose blockchain in today's market   since its launch in 2015 and many people are also 
looking forward to the upgrade of ethereum 2.0   which will be rolling out in the following 
phases phase 0 which was launched in december   2020 with the implementation of beacon chain it 
stores the registry of validators and deploys   the proof-of-work consensus mechanism phase 1 
is anticipated to launch in 2021 and all the   shard chains will be integrated when it's live 
initially 64 shards are expected to be launched   next in the cycle ethereum 1.0 chain will become 
the shard of ethereum 2.0 which is regarded as   phase 1.5 and transfers will be enabled resulting 
in ethereum 2.2 resembling a perpetual debt   and equity-like bond along with a floating rate 
as validators will now be able to freely enter and   exit the scheme in the final phase which is phase 
2 the shards will become fully functional and   compatible with smart contracts the final phase 
of ethereum 2.0 is scheduled to launch in 2022   and it has already become a hot topic of the 
debate personally saying with its added advantage   and scalability ethereum 2.0 will gain more and 
more interest from investors in the years ahead   with that i hope this video was helpful to 
you and serve value if you love my content   be sure to smash that like button and if you 
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