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Friday, September 30, 2022

Ethereum 2.0 is coming – Here’s what you NEED to know

Ethereum 2.0 is going to bring a huge amount of changes to the Ethereum network. It’s going to bring a lot of upgrades to how fast Ethereum runs the scaling aspect of it. But that’s not it. It’s going to bring a huge amount of economic changes to changes that affect us the everyday user.

Namely, you can probably see there are people. Accumulating exactly 32 Ethereum right now, and we’re going to explain exactly why that is, but also something that’s quite peculiar is that for a period of time. Almost one, two years. There’s actually going to be two.

If there are some tokens, there’s actually going to be a new ETH2 token potentially in existence. So we’re going to tell you guys exactly what’s going to happen down and the rules of what’s going to happen so you don’t get caught off guard.

Now, one of the reasons why if Ethereum has been trying to implement so many new features is that the criticism for Ethereum has been mounting over the past few years. There’s been a lot of vocal critics saying, Oh, Ethereum’s too slow. It’s downright broken at times, and in many ways, Vitalik has been clapping.

Dancing and gathering his developers together to come up with the ultimate solution to this. This episode is brought to you by Pemex exchange. Pemex just launched their zero crypto fee trading program, and this is really getting rid of one of the biggest pains, encrypt all. So for example, I’m financed this month.

I traded 88 Bitcoin worth of trades, which roughly equates to $534 off-trade fees. Don’t ask me how I got there on Phemex dEx. I will be just be paying 9.99 Per month, which is far cheaper. If you’re interested, check out the link down below. You know what, guys? I’m going to jump straight into the economic side of this first because this is going to drastically impact how some of us want to collect.

Passive income off Ethereum. That’s right. You heard it right. You can now in the future, once this is all launched, collect passive Ethereum over time by just running any theorem validator note. So what’s cool is in fact right now we got a validator note. Set up and every day is generating 0.0133 per day.

So roughly at today’s prices, we’re generating around $2.50 if you look closely here at this chart, you can see that we’re slowly though. Blue line up here, you can see that we’re slowly accumulating more and more ETH every hour. And you can notice this. Yeah, the green line, this is how much we’re meant to stake.

So by staking, we mean you have to actually lock it up and you must have at least 30 to eat. So if you have under this, you’re not allowed to run a sticky note. And that’s why everyone has been over the past few years accumulating. Just 32 ETH or a little bit more of that. And you see wallets containing 32 ETH and more.

So there are a lot of people already anticipating this change and preparing for it. Now, something to note as well, and something that’s quite interesting is that you can also see that the initial part, we actually lost the physical money and this kind of explains the purpose and the value of having any theories. It’s 2.0 nodes. It needs to stay online.

Because it’s being called to do crucial votes. So if it’s offline, if it’s not the kind of voting in the Ethereum jury, then it’s going to get penalized. So in fact, you’re not just getting ETH and keeping interested, but you’re doing something very valuable on the network to keep the network running.

And that’s a whole idea behind the proof of stake. You’re staking but also performing actions, user actions on the network. So over here you can see a list of what my server has been voting, the attestations have been doing, and in return for performing those actions, you can see the accumulation of Ethereum over time. The only sad part, obviously right now is that this. Is using test ether.

So everything that I’m talking about here is still in a testing phase and all that. Ethiopia is not real. It’s on the Ethereum. Go wary test net and you can actually test this out for free. And we have a full guide on our channel, on a website right here. I’ll put the link down below. Now you can see this here.

This has been what I’ve been using to mine, Ethereum, and previously it’s possible to gain quite a good income from Ethereum, but once Ethereum two starts to launch, it’s going to start slowly migrating to proof of state to those servers over there, and just the economic side is going to fundamentally change. So, instead of miners getting rewarded.

Stakers are going to reward, and instead of people investing in video cards like this one over here, they’re going to start investing in Ethereum to gain that passive income. All right? Then, does that mean we should throw away our Ethereum miners? What’s a timescale for this? Well, actually the timescale is not going to be like a fan or snap. It’s actually going to take quite a long time. In fact, it’s going to move through phases, so we’re going to talk.

In the following section a little bit about what the phases of Ethereum are and what the state of every phase is going to be. There’s going to be three phases, but being standard programmers, they’re going to call it and start it from zero. So, our phase zero one and phase two.

Phase zero so currently what’s happening right now is we’re approaching phase zero. So we’re kind of doing the auto groundwork for phase zero. And in fact, there’s also code out for phase zero. So remember the validator know that I’m running and passively correcting Ethereum on.

This is the test net for it. So testing this in progress. It’s not going to be test net, so it’s going to be a grand test of this before it finally launches, but we’re going to see, we’re seeing the preview of it in action.

What phase zero is going to do and it’s going to bring along is it’s going to bring along something called the beacon chain. This is the primary objective of this phase. Now, the phase-in terms of economics are very, very interesting because to bring about this change, you need these validators and you need that state, Ethereum, and to do so, you actually must make a conversion.

You must make a conversion to this new token called ETH2, and it’s actually going to be completely different because once you do that conversion, once it converts to ETH2 you will actually be able to convert back. But. You are going to gain one special benefit, which is that you are going to be able to state that ETH too and start earning.

Every day a certain passive income for staking on the network. And what will you earn? Of course, you earn more ETH2. So this is a way of getting passive income from your ETH1, the new network. Now moving onto phase one, this is when things get very interesting.

Now, if you imagine your theorem as a crystal, the crystal, Ethereum, if there is one is phase one is going to smash that crystal into 64 different shots. Now, why would you want to do that is because each shark now has the ability to compute in parallel. It’s going to almost, it can think about it as 64 X-ing the power of Ethereum, but it’s actually a little bit beyond that. Each shard is going to be even more powerful.

And it’s going to be separate from each other. This is something that’s actually done quite a lot in databases. So if you actually run video games or if you run the back end of IBM servers, you’ll see a sharding architecture is pretty much widespread adopted in the entire database space. But in the blockchain space, it’s just been a little bit harder to implement, more precisely.

The reason being is that if each shard operates. Differently. How do you transact between these charts and what makes, what’s guaranteed? Do you have that? People won’t try to exploit these charts to even duplicate items or duplicate new coins, and this is why it’s been so hard taking more than three, four years of time for developers to come up with the solution to this.

So what’s going to happen in phase one, we’re going to have these process chain links. We’re going to have a lot more computational power developer site gets a lot more complicated here because they actually want to, they need to choose which shard to be at autumn.

Meanwhile, doll, you don’t have to really worry about Ethereum itself. The main chain that we’re being, we’re on. It’s still going to run in parallel, so everything that’s going to happen is kind of be. Going to be happening in that isolated environment in the beacon chain, in these cross charts.

Dig, do going to be for a law for developers to try to experiment, try to try to fix them, break and not going to affect the main operation of Ethereum that we know today. So we’re still keeping that alive. Phase two now this is when everything becomes sketched together. This is the combination phase, the melting pot of ideas. This is when the main chain that we’re on, the proof of worshipping this gets merged into those shards.

It becomes. A whole again and now if they’re, it has gone to become melded together to become the full power of Ethereum. It’s almost like transformers coming together, moulding and becoming that ultra megatrend that we’ve been waiting for migrating and becoming Megatron. It’s easy to say, but it’s hard to execute. So right now it’s still an open question as to whether all Ethereum 1.0.

Contracts will be migrated to 2.0 so that’s still an open question and it’s open up to debate. So what I see here is that phase two or very likely be far further out in the future, maybe two or three years, and everything will be subject to change at that time.

And this is also where the uncertainty of miners come in because. Overall in phase zero and phase one, developers will be testing proof of state to see if it is safer than, of course, if it’s can’t be just a safe ratter as mining.

So this is where things get a little bit more cloudy, to say the least. I think there’s a lot of room to decide whether Ethereum still wants to keep some of that mining infrastructure there, but at the same time, there’s definitely a huge push to migrate fully.

To proof of stake, and obviously, you can tell I’m pretty excited about everything, and I do have to say that this has been a long time waiting. In fact, when I started making videos, we started talking about the ideas of the proof of stake improving Ethereum, and that’s nearly three years ago.

So we had to wait three years for a lot of this to come into full fruition. And for those three years, there has been a lot of changes in ideology. Changes and thoughts and delays on this as well. So managing expectations here. I do want to say it might take longer than what developers are saying it is to implement these phases.

This is, after all, one of the most. Vicious projects going on to a live product. Blockchain is changing fundamentally down to this core of how it operates, how it reaches consensus and how to server the infrastructure and everything is set up. So definitely going to be a lot of hiccups along the way, but I’m very optimistic to see things going forward and what is definitely exciting me recently is the test for these, because previously all we got were some kind of notes, meeting notes.

And tabulations things are going to come. But finally, we’re seeing the first code of this and there’s also going to be quite a few implementations of this call to the one that we’ve been testing out is from prism labs, but there are other labs such as a lighthouse or even Casper labs working on different ways to write software to connect to each other in phase zero.

On top of that, we have the resource on Ethereum, 2.0 and box mining.com so make sure you do check that up for the full list of information and what we are doing with our validator node as well. And with that guys, thank you so, so much for watching.

If you definitely found this video helpful, click the little like button down below. And of course, if you haven’t done so already, subscribe to the channel. What are you waiting for guys? Thank you for watching. See you next time.

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