Why Ethereum 2.0 boosts bitcci
26 Nov 2020 | 07:44 AM

Why Ethereum 2.0 boosts bitcci

Ethereum 2.0 in simplest terms is an upgrade to the current Ethereum blockchain.
The primary aim of this update is to enhance the transaction speed of the blockchain
and process more transactions every second, ultimately making the entire ecosystem more scalable.

Difference between Ethereum and Ethereum 2.0:
On the core level, Ethereum 2.0 will be based on POS (Proof of Stake) consensus
mechanism which requires the miners to stake crypto in order to validate the
transactions whereas Ethereum 1.0 used the traditional POW (Proof of Work)
consensus mechanism which required the miners to use their computation power
in order to solve complex mathematical puzzles and verify the transactions.

POW requires lots and lots of energy and by its nature is very complex too thus
causing delay in transactions being confirmed and ultimately congestion in network.
This issue will be solved in POS as it will not require solving these complex puzzles.
Thus it is highly energy effecient.

How will Ethereum 2.0 boost bitcci ?
Currently Ethereum 1.0 supports only around 30 transactions per second which is pretty slow.
Ethereum 2.0 has promised up to 100,000 transactions per second which is a huge boost.  This means there will not be any delay in confirmation of bitcci transactions.
Tokens will be sent almost instantly. Peer to peer trades on blockchain will be settled almost in real time.
No congestion in network happens – even if there is huge traffic on the blockchain.

Timeline for Ethereum 2.0 upgrade:
The upgrade is a three phase process with the first phase (phase 0 ) being launched on december 1, 2020
This will introduce “Beacon chain” this stores the registry of Validators and deploy thr new POS chain.
This new chain will not break the data on current running POW chain at all as the POW chain will still
run alongside the POS chain.

Phase 1 will be launched in 2021:
This will introduce the new POS shard chains (expected to be 64 in number) thus increasing
the throughput by a factor of 64 when compared with Ethereum 1.0

Phase 1.5 will be an intermediate update in 2021, it will introduce the transition of
Ethereum blockchain to Proof of Stake.

Phase 2 will launched by the end of 2021 or start of 2022 (tentative)
It involves adding Ether accounts to new chain and enabling transfers and withdrawals.
This phase will build environment for the scalable apps that run on Ethereum 2.0

 

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