Ethereum 2.0 is a series of upgrades to the Ethereum blockchain that aims to improve the network’s security, scalability, and energy efficiency:
Proof of stake (PoS)
The network uses a PoS consensus mechanism instead of the current proof-of-work (PoW) model. This makes the network more decentralized and environmentally friendly.
Sharding
The blockchain is split into multiple chains to distribute the work of validating nodes.
Beacon Chain
A new blockchain that coordinates the network and rewards validators for securing it.
Scalability
Ethereum 2.0 will be able to process more transactions per second than the current network, potentially reaching 100,000 transactions per second.
Usability and efficiency
Ethereum 2.0 aims to improve the network’s overall operation and user interface.
The Ethereum 2.0 upgrade is a multi-year process that’s being rolled out in phases:
Phase 0 – Beacon Chain: Launched in December 2020, this phase introduced the PoS consensus mechanism.
Phase 1 – Shard Chains: Expected in 2023, this phase will introduce 64 shard chains.
Phase 1.5 – Merging: This phase is expected to be in late 2023 or early 2024.
Phase 2 – Execution Environments: This final stage will make shard chains fully functional.