Ethereum network continues to be the home to several DeFi applications and now Non-fungible tokens(NFTs). Since its inception, the Blockchain, which has continued to run on the same proof-of-work, is now set to witness another massive upgrade by its developers. The new upgrade will feature validators instead of miners and allow the network to transition into a phase where it will process more transactions at a lower cost. However, while the features are great, another aspect the new network is set to focus on is the Energy consumption of Ethereum, which is set to lower drastically with the new upgrade.
Ethereum 2.0 will likely continue to roll out in phases
The idea behind the launching of Ethereum 2.0 was touted last year by the developers behind Ethereum. The Ethereum 2.0 was projected to be a massive upgrade on the current network, which Ethereum coincidentally shares with Bitcoin. The first phase of the new network Ethereum 2.0, also known as Beacon Chain, was launched on 1st December 2021. However, Beacon Chain launched as just a part of the proposed significant upgrade on the current network.
According to Danny Ryan and Mikhail Kalinin, the senior developers of the project, the complete upgrade will process more transactions in little time and see the gas costs lower drastically. However, while the network is currently planning to launch the other phases of the Ethereum 2.0 network, it is worthy of commending Beacon Chain’s performance, which has brought considerable fortunes to the network.
Fortunately for the network, Beacon Chain’s launch had also seen Ether’s price hit several All-time highs since December 2020. It is also worthy to note that while the idea behind Ethereum 2.0 is ecstatic, the developers of the project are yet to label a completion date on it, as it seems that the network will likely come in upgrades as time goes on. However, the Ethereum community expects the complete phase of the network launch, as its developers cannot wait to keep it running.
What are the impacts of Ethereum 2.0?
Many analysts have weighed in on the impacts of Ethereum 2.0, particularly on Ethereum and the Blockchain community. Ethereum currently is the host to so many DeFi applications, which have found solace in its smart contract offerings. However, a few of the DeFi apps have recently complained about high gas fees on the network, hence, flocking TRON and a few other competitors of Ethereum. However, Ethetreum 2.0 is set to boast of low gas fees, which many believe will knock many of Ethereum’s competitors out of the game.
NFTs, which represent graphically work obtained on the blockchain network, are also a relatively unpopular market powered by Ethereum. However, the NFT market, which has continued to grow since last year, will also be one of the primary beneficiaries of the improved network, set to bolster its fortunes. However, while the developers have not concluded when the new network’s other phases will see the light of the day, the Ethereum community is patiently waiting.