Ethereum 2.0. What’s new?

Ethereum 2.0 (also called Eth2 or “Serenity”) is an upgrade to the Ethereum taht will improves more scalable, more secure, and more sustainable. Ethereum 2.0 will be released in multiple “Phases” starting in 2020 with Phase 0. Each phase will improve the functionality and performance of Ethereum in different ways.

What’s new?

There are two primary improvements introduced by Ethereum 2.0 that do not exist in Ethereum 1.0: Proof of Stake and Shard Chains.

Proof of Stake: Currently, Ethereum 1.0 runs on a consensus mechanism known as Proof of Work (PoW) which has low speed for confirmation transactions. On the other hand, Proof of Stake (PoS) is an upgrade which enables improved security, scalability, and energy efficiency.

Shard Chains: Shard chains are a scalability mechanism which drastically improves the throughput of the Ethereum blockchain. Currently, having a single chain made up of consecutive blocks is incredibly secure and makes information easy to verify. However, requiring each full node to process and validate each transaction in consecutive blocks can affect the ability to process transactions quickly – especially in times of high mainnet activity. Shard chains are a mechanism through which the Ethereum blockchain is “split” – thus dividing the data processing responsibility among many nodes. This allows for transactions to be processed in parallel rather than consecutively. Each shard chain is like adding another lane to upgrade Ethereum from a single lane road to a multiple lane highway.  More lanes and parallel processing leads to much higher throughput. Shard chains are expected to be rolled out in Phase 1 of Ethereum 2.0.

What is the roadmap?

Here is the detail roadmap of Eth2.

How do I stake to become a validator on Eth2?

According to official website of Ethereum:

To become a full validator on the network, you’ll need to stake 32 ETH. If you don’t have that much, or aren’t willing to stake that much, you can join staking pools. These pools will let you stake less and earn fractions of the total rewards.

How do I get rewarded for staking on Eth2?

As a validator on Ethereum 2.0, you get rewarded for proposing and attesting the next block in the chain. You will receive rewards in ETH for making valid proposals and attestations.

Rewards are dynamically calculated based on the state of the network upon epoch completion. Network level reward issuance rates are a function of the total amount of ETH staked and average % online of validator(s). Individual validator reward rates depend on the number of validators run and % uptime of the validator.

Rewards minus penalties are transferred to validators every epoch (384 seconds ~6.5 minutes). As a result, the reward you expect to receive when being randomly selected to be a validator may be different than what a validator actually receives.

Check out The Eth2 Calculator to get more information.

What is happen to ETH that I own now?

According to consensys blog there is no need to do anything special with the ETH you currently own. It continues to be fully usable on the Ethereum 1.0 chain. At some point, the Ethereum 1.0 chain will become part of Ethereum 2.0, and your ETH will continue to function just as it does now, with no action required on your part.

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