ETH2 or ETH 2.0 are often confused as separate entities, but this is not the case. They are one and the same thing. And today, through this blog post, I am going to give you deeper insights into what ETH 2.0 is and how is it going to affect the cryptocurrency market in the years to come.
As you know, with advancements in technology, a lot of things take a new shape and the same happens to be the case with the Ethereum blockchain. With the introduction of Ethereum 2.0 in the marketplace, a lot of features got added to the Ethereum blockchain. The platform has seen an increase in speed, work efficiency, and scalable solutions. But the question is how is it going to affect the users.
Effect of ETH 2.0 on the Ethereum Blockchain
As a result of the introduction of ETH 2.0 crypto traders will be able to make more transactions in lesser time meaning that the blockchain will become efficient enough to handle more transactions. Another important thing to note is the decrease in the network fees. Now, you must be wondering about the purpose of why ETH2 came into existence. Well, the main aim of why it was introduced is to allow Ethereum to become a transparent as well as an open network for entering the DeFi (Decentralized Finance) world.
And that's not all, one more upgrade to this network is soon going to take place in the second half of the year 2023. This future update is given the name of "Shanghai upgrade" and is said to have a great economic upgrade.
Are you still confused about what ETH 2.o actually is? In that case, you can take a look at the following section and take a look at the background details of the platform.
Ethereum 2.0- A brief introduction to the Network
ETH 2.0 has been dropped into the marketplace with several improvements in the Ethereum blockchain and it should be noted that this introduction is supposed to involve Sharding to a whole new level. This will eventually make an increase in the network bandwidth ultimately reducing the gas fees. Alongside that, it will also allow support for the stake nodes so that users can earn passive income in the form of Ethereum.
Why consider moving ahead with ETH 2.0?
Prior to the introduction of ETH 2.0, crypto trading through the platform did cost the user huge transactional fees. But, Ethereum 2.0 came up with some great changes in terms of:
- Network scalability
- Efficiency
- Sharding
- The movement to the PoS consensus
- Enhanced security features
Conclusion:
When it comes to technological development, how can the crypto market space stay out of focus? As there were several loopholes in the Ethereum blockchain, ETH 2.0 came as an improvement to help people get away with those loopholes and make transacting on the Ethereum blockchain a smoother, speedy, and less expensive process. So, what are you waiting for? Upgrade to this network right away.