If you’re a crypto enthusiast, you might have been tired of hearing about ETH 2.0 everywhere. But what is ETH 2.0? Is Ethereum going to launch a new coin? No.
ETH 2.0 is an upgrade in the Ethereum network that started at the end of 2021 and aims to be completed by the summer of 2022. But what is it that the upgrade is bringing? Will it be successful, or will it be dumped? Should you invest in it? I know you have so many questions. Let’s answer them all!
What The Upgrade Is Bringing
Developers of the Ethereum network are trying to upgrade it to ETH 2.0 to make significant changes in the blockchain to make it better. The upgrade is named Arrow Glacier.
- Ethereum has a lot of performance issues as it relies on the proof-of-work mechanism. This mechanism is power-intensive and inefficient. So, with the upgrade, Ehtereum will abandon this mechanism and completely shift to a more efficient mechanism, proof-of-stake.
- Sharding is a technique of database positioning used by blockchain companies to increase scalability and enable more transactions per second.
- Ethereum is a rigid competitor to Bitcoin because it facilitates the use of smart contracts. And with the Arrow Glacier upgrade, eWASM will replace EVM(Ethereum Virtual Machine). And smart contracts on the EVM can execute financial transactions, run games and even operate social networks.
Will The Upgrade Be Successful
Well, we can’t say this for sure. But the upgrade is happening in phases. Till now, every phase has been a success. If ETH 2.0 successfully happens, you will see a more sustainable network, reduced gas fees(which is very high), and faster transactions on the blockchain.
Should You Invest?
Now comes the most asked question; with the upgrade of Ethereum to ETH 2.0, should you invest your money in it? Many speculate that if the upgrade happens successfully it will bring about a significant increase in its price. Well, no one can predict the future. But you can take a bet by investing a small portion of your portfolio in Ethereum.