Ethereum 2.0, also known as Serenity, is an ambitious project for many years, which aims to create the world’s affordable programmable money. Over the next few years, the Ethereum will be exposed to numerous updates and branches, in order to become the most inclusive network, which was outlined in the whitepaper coins about 5 years ago.
At the moment the Ethereum network can handle about 25 transactions per second. Unfortunately, this bandwidth is clearly insufficient, given the fact that the mission Ethereum is turning into the world’s computer for the next generation of applications. Fortunately, network bandwidth will pass through the mass of the striking improvements in the coming months and years. The developers of Ethereum 2.0 will introduce a number of new solutions scalability — in particular, Sharding (“Sharding”) and Casper (“Casper”).
What is sharding?
So you have some idea about the traditional architecture of the blockchain, typically, each host (node) in the network needs to verify and process each transaction (e.g. money transfer). If thousands of nodes and each node needs to validate every transaction, it creates latency issues and ultimately leads to inefficient transaction processing. There is an opinionthat this kind of architecture inherently limits the network scalability level 1 or 1 layer (layer 1).
Therefore, sharding, or partitioning network divides the processing into smaller pieces — the shards (likely to survive this term, so get used to it). The shard is a chain consisting of clusters or cluster nodes inspectors — the so-called “validators”. As such, nodes are only responsible for processing and validating transactions only in the framework of their respective shards.
Passing the test transaction to multiple shards, nodes will process fewer transactions, which ultimately will lead to higher scalability, almost no damage to decentralization or security.
What is Ethereum Casper?
Unlike Bitcoin or Ethereum 1.0, Ethereum 2.0 will use Proof of Stake (PoS). We are talking about the proof system of read more here, better known as Casper, to achieve consensus. Unlike PoW, which requires users — they are for miners to provide computing power of their computers to ensure network security, PoS requires that the users — they are validators — literally pledged their money, their cryptocurrency assets to ensure the security of the network. In practice, Casper will require the user rate of 32 ETH, so that he could become a validator and received remuneration in the form of Ethereum (ETH).
- Phase 0: Beacon Chain
- Phase 1: Basic sharding
- Phase 2: Sharding with EWASM (Ethereum Flavored WebAssembly)
- Phase 3 and on: light clients, crossedby transaction, super-quadratic sharding and all that jazz
Phase 0: Beacon Chain
The first step in the direction of Ethereum 2.0 (Phase 0) revolves around the transition to a completely new blockchain — Beacon Chain. Beacon Chain (literal translation: “chain-a beacon”) is the basis for Ethereum 2.0, since it includes the initial implementation of the Casper/PoS (without sharding) and multiple functions that act as basic infrastructure, pasalaysay to use sharding in the future.
In addition, the Phase 0 does not include the functionality associated with smart contracts or the EVM (Ethereum Virtual Machine), because it is planned for Phase 2. Beacon Chain is mainly designed to:
- control validators and their shares;
- – appointment of the applicant units for each shard at each step;
- the organization of the validators in the committees to vote for the block;
- the application of the rules of consensus;
- the application of the system of rewards and penalties for validators;
- as a starting point, where the shards register their status for mediation crossedover transactions.
It is important to note that Ethereum 2.0 uses a brand new young blocka. This means that the network will not be updated as hardwork on an existing circuit.
More importantly in phases 0-2: all user transactions and smart contracts will be executed is still PoW-chain Ethereum 1.0.
With that said, the awards at all stages will be distributed as validators or miners in each respective chain (ETH 1.0 & ETH 2.0). Thus, the total emissions will be higher in the early phase Ethereum 2.0, while gradually decreases to 0-1%. Users interested in how to become validators for Ethereum 2.0 during Phase 0, translate your Ethereum 1.0 to 2.0 chain using contract deposits operating in one direction. This contract will burn ETH 1.0 and will be given a new ETH 2.0 Beacon Chain.
In order to successfully start a “chain-lighthouse”, is a threshold which will require a total of 16 384 running validators that totals to 524 288 delivered in the form of shares (staked) Averianov 2.0. Once this threshold is reached, validators, who translated the ETH on the chain 2.0 will receive a profit of 11 percent per annum in certain settings*.
*Profit will be reduced the more, the more ETH will be delivered in the form of shares above a certain threshold. The threshold is not yet specified.
Phase 0 shown remarkable progress in 2019. 7 may a team of Prysmatic Labs released a public testnet for “chain lighthouse” on Goerli. This client allowed users to validators and send 3,2 ETH on testnet, receiving coins in return for participation (also in Apurimac Goerli).
Phase 1: basic sharding (no EVM)
After the implementation of the Beacon Chain, Phase 1 will add the basic structure of sharding. In General, this phase is combined with the circuit-the lighthouse will significantly improve the network throughput and will be an important milestone for the scalability of Ethereum.
But do not forget that this will be a basic implementation of sharding and smart contracts are absent in it. Beacon Chain will largely be responsible for build, reliability and a consensus of the data in the shards through the performance of so-called blobs (binary large objects = binary large objects).
In addition to this basic implementation in Phase 1 will also have cross-references.
Cross-references will allow you to record and to finalize the status of each shard of the Beacon Chain. Ultimately cross-reference will serve as a basis for transactions between the shards in the later phases. More on that later.
In the current implementation of this spec States that the chain-a beacon will be able to support 1024 chain of shards, each of which contains 128 full nodes (131,072 nodes). Thus, we can assume that in the Phase 1 bid will be no more of 4.19 million Ethereum.
It is important to note that these specifications are constantly adjusted as further tests and research. Some of the details and figures set forth in this article may ALREADY be outdated because the majority of developers worked tirelessly, bringing Ethereum to Serenity.
Phase 2: Sharding with EVM/EWASM
Phase 2 — that’s when Ethereum 2.0 will play in full force. In this step, you enter the balances of accounts, the execution of smart contracts and other abstractions in the network. The biggest improvement in Phase 2 includes integration EWASM (Ethereum Flavored WebAssembly), which is the next specification of the Ethereum Virtual Machine (EVM) based on WebAssembly.
EWASM will allow faster execution of the code and will provide an improved environment for development. The main point of attracting developers to EWASM is to write smart-contracts C, C++, Rust and Go, not to mention the access to the available development tools WASM.
If you want to know more about EWASM, feel free to check out Github.
Another interesting development of Phase 2 is to “rental status”. This lease allows the network to charge for storage and requires users to pay EWASM for this “service”. It’s quite controversial implementation, just need to consider that it may introduce.
Phase 3 and on: light clients, crossedby transaction, super-quadratic sharding and such
Unfortunately, after Phase 2 is in a state of exceptional forecast and there is no sure information about these phases. But the official FAQ Sharding paints Ethereum Phase 3-6. They will add a number of features that I’m sealing the Serenity and turn it into a fully scalable network that is always expected. Among the implementations:
- crossedby transaction;
- light clients;
- super-quadratic sharding;
- close ties.
If you are interested — dive into Github. About what will happen after phase 3, we will discuss in a separate article.
Who makes the ETH 2.0?
Because on the horizon there are plenty of opportunities to change Ethereum, there is no doubt that Ethereum 2.0 make players of the highest level. Below we give a graphical representation of the commands that are studying or developing a client for Ethereum 2.0.
And in conclusion
Serenity is a technically ambitious plan that should lead us to the true world computer. If the community will be able to fulfill the desired network, nature truly scalable network of smart contracts with quite a variety of assets to attract developers, investors and users.
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