Table of Content
- Phases of Casper Ethereum 2.0 rollout
- The Pros & Cons of Casper Ethereum protocol 2.0
The Ethereum platform has gained immense popularity among crypto enthusiasts and developers in recent years due to its versatility and ability to accommodate numerous kinds of dApps. However, Ethereum’s blockchain is facing considerable challenges since it requires too much electricity and computing power for distributed consensus, an unsustainable model not only from a conservation standpoint but also from a security point of view. This has necessitated a shift towards more sustainable models similar to Proof-of-concept (PoC) or Proof-of-Stake (PoS). The evolution of Ethereum mostly revolves around the latter implementation as Ehereum is set to abandon its current mining system PoW (Proof-of-Work) in favor of a more energy-efficient protocol PoS (Proof-of-Stake). Ethereum miners currently consume 44.49 TWh per year, which works out to 5.13 gigawatt of energy, but PoS is 2000x more efficient with conservative estimates calculating a reduction in total energy use by 99%!
Ethereum 2.0 is a new and improved version of the Ethereum 1.0 blockchain that will increase scalability, making it more user-friendly in the process.
Vitalik Buterin, the co-founder of Ethereum, has advocated for the cryptocurrency to run on the POS consensus. His views about this switch re-examine the environmental cost of mining Bitcoin and another cryptocurrency. The issue received renewed focus when Tesla CEO Elon Musk tweeted that his company would stop accepting Bitcoin as payment because he is concerned over its rapidly increasing use in fossil fuels for cryptocurrencies like bitcoin mining which requires a lot of energy consumption from coal plants around China due to how people are using it more than ever before according to research done by Bloomberg New Energy Finance.
Phases of Casper Ethereum 2.0 rollout:-
Ethereum 2.0 will be rolled out in multiple phases:
Phase 0 -> Launch of beacon chain, implementation of Proof of Stake.
Phase 1 -> Implementation of sharding which will divide the database horizontally and spread it across to reduce network load. (Anticipated near the end of 2021)
Phase 1.5 -> Deprecation of the Proof of Work chain. The entire history of Ethereum 1.0 will be transferred into 1 shard on Ethereum 2.0
Phase 2 -> eWASM support for smart contracts and transactions
The Pros & Cons of Casper Ethereum protocol 2.0
Cons of Ethereum 2.0:
- One of the most significant drawbacks of proof-of-stake is that it centralizes voting power, leading to a single person or entity running an attack on a blockchain network. Ethereum’s developers have addressed this issue by using Byzantine Fault Tolerance algorithms and checkpoints to avoid such attacks from being successful.
- One drawback for those who favor Proof-Of Stake (PoS) over other consensus methods like Bitcoin’s Proof Of Work (POW) is its lack of decentralization because all stakers must vote together, weighting votes based on how many coins they own; thus giving larger holders more say than smaller ones since their stake count will be higher than others. This makes PoW better at
- The Ethereum blockchain is not without its flaws and attacks. One such attack, a “long-range” attack, would involve an attacker who has had access to old private keys for some time now using them to create competing versions of the blockchain, which might render it useless if they can rewrite history long enough due to having a large number of validating nodes under their control when attacking. Casper provides one solution: as soon as two thirds or more votes have been cast on any given block’s validity by these same validators, then that particular block will be finalized immediately, preventing this type of reorganization from occurring while all other blocks remain open until voted upon thus rendering full node participation necessary during periods where those turned off may still cause problems with the network.
Pros of Ethereum 2.0:
- The first benefit of PoS is that it eliminates the need for miners. With PoS, transactions are confirmed by validators instead of electricity-hungry miners. This means that blocks will be created faster than with mining, and there will be less power consumption in the process. PoS will make Ethereum more environmentally friendly because of its lower power consumption.
- Another potential advantage to PoS is greater decentralization, as some people believe this system would make it harder for a single entity to control the network or manipulate transactions.
- In conclusion, we can see how POS could bring many benefits to Ethereum, such as increased speed, better environmental impact, and increased decentralization, creating a healthier blockchain ecosystem overall.
- Ethereum 2.0 will be a total game-changer, potentially processing 100,000 transactions per second and drastically lowering transaction fees for Ethereum. Vitalik Buterin also said that there should be a reduced number of new tokens issued in Ethereum 2.0
If you are a fan of Ethereum, the Casper protocol is something to look forward to. The evolution from Proof-of-Work (PoW) to Proof-of-Stake (PoS) and other changes such as sharding and increased efficiency all sound like good news for the future of this cryptocurrency. But don’t worry if these updates sound too complicated or intimidating just yet – our team will be reviewing them closely before we make any significant decisions about updating cxihub’s blockchain infrastructure with Ethereum 2.0. You can subscribe here for more information on when we update so that you stay up to date on what’s happening in the world of cryptocurrencies!