Ethereum is Migrating to Proof-of-Stake; What Challenges it Has Faced in Implementing PoW
Ethereum is the second-largest cryptocurrency by market volume after Bitcoin. This shows how Ether is a recognizable digital asset in the crypto ecosystem.
The blockchain network underlying the cryptocurrency is very competitive and reliable as compared to other projects.
Ethereum network is also at the top in hosting the largest number of dApps leaving behind all competitors. The transaction speed is also very appreciative but what’s the most attractive thing about Ethereum is its plan for a new blockchain consensus- proof-of-stake.
Proof-of-stake is different from the proof-of-network. In Proof-of-Work (PoW), a miner is required to solve the cryptographic puzzles in order to mine a block. On the contrary, in PoS, nodes or validators who have the largest network stake will decide the fate of a block.
Why PoS is so important?
Since the time of coin creation, creators have decided to implement the proof-of-stale algorithm in the future with gradual updates. The plan is still not completed but now, the developers claimed that they are in the final stage to laid down the foundation of PoS.
The new algorithm has many advantages over the proof-of-work consensus: the network security will increase and the cost of electricity will reduce. There will be no use of ASIC miners or GPU mining computers. Everything will run through validators who will vote for the successful block formation.
Consensys will carry out in Phases
The network, according to the roadmap, will upgrade to Ethereum 2.0 that will operate on the new algorithm- proof-of-stake. Users’ data including wallets addresses and balance will migrate to the new blockchain Ethereum 2.0.
The upgrade- Ethereum 2.0- will take place in different phases. Currently, the developers are testing the Phase 0 called Beacon Chain. Beacon Chain will integrate the shard blockchains. A news asset called ETH2 will be created for the network validation under the ‘Phase 0’.
Phase 1 and Phase 2 will happen after the successful application of Beacon Chain. The smart contracts will be reshaped with a new consensus.
The co-founder of Consensys says, ‘’ 2020 will see Ethereum move stridently beyond Phase 0 of Ethereum 2.0, onto Phase 1 and the launch of shard chains.’’
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