Ethereum co-founder Vitalik Buterin said that Ethereum 2.0 update would increase the transaction rate. He also claimed that Ethereum 2.0 would solve all the problems in the ecosystem.
16 March, 2020 | AtoZ Markets – There is a lot of curiosity around Ethereum 2.0 within the crypto community. With its promise to improve scalability and privacy on an impressive scale, this update is expected to revolutionize the way the ecosystem works for Ethereum.
What Will Change With Ethereum 2.0 Update?
In a recent podcast, Ethereum co-founder Vitalik Buterin said that Ethereum 2.0 would address all the problems that the ETH ecosystem has faced since its inception.
ETH 2.0 will contain a central blockchain called “Beacon Chain”. This will coordinate the 64 side chains called shards. Shard will act as a complete PoS system, containing an independent part of the status and transaction history. Instead of processing all network transactions, each node will only process transactions of a certain shard.
If properly implemented, sharing will provide a solution to Ethereum’s scalability problem without compromising the security and decentralized nature of the network. Buterin said that once the ETH 2.0 network is fully robust, Ethereum 1.0 will merge with the 2.0 system, completing the transition.
In 2017, the CryptoKitties application slowed down the network and put transactions in a state of constant purgatory was mentioned in the podcast. The podcast then asked the co-founder how Ethereum 2.0 could help in such situations. In response, Mr. Buterin said:
“The current Ethereum chain can make 36 transactions per second. If you do an optimistic roll-up or a ZK roll-up, it goes to 2,500. If you only do a Sharding, it can go up to ‘at 2,000 and 10,000. Moreover, if you roll-up on top of sharding, it can go up to 100,000 to 1 million per second. “
In another recent interview, Buterin noted that ETH 2.0 would start as an independent PoS network. He explained that the goal of Ethereum 2.0 is to allow the PoS system to start-up slowly to prove its transactions rate over time. He said, “Ethereum 2.0 will start without any application and will have a small number of validators”.
Ethereum 2.0 Update with Better Privacy Protection
ETH 2.0 update facilitates better protection of privacy. Mr. Buterin mentioned functions such as Zk-Rollup and Optimistic Rollup, which allow a person to perform calculations, generate proof and keep the chain fraud-proof. Buterin said these two techniques would “make a huge difference in the next year or so”. He said:
“Recently launched a ZK-Rollup exchange can theoretically perform 2,500 transactions per second (TPS) if all Ethereum users become their users. It’s not just about scaling payments, but something equivalent to the Ethereum virtual machine. “
Overall, Ethereum’s Buterin believes that “ETH 2 is radical and ETH 2 is great. ETH 2 is potentially an increase in scale from 100 to 1000 factors, and “Eth 2 is the future. But, ETH 2 is not literally tomorrow”.
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