William: What will the performance upgrade of Ethereum 2.0 bring?

Editor's Note: This article comes fromChatting with William (ID: William1913), Author: William Chen, reproduced by Odaily with authorization.

Editor's Note: This article comes from

Chatting with William (ID: William1913)

Chatting with William (ID: William1913)

, Author: William Chen, reproduced by Odaily with authorization.

"The main contradiction of Ethereum is the contradiction between the ever-increasing demand for contract usage and the stagnant underlying capabilities." - A large ETH investor who did not want to be named

If it is almost the second half of 2020, and you still think that cryptocurrency has no practicality, no real landing value, or even hype if no one is using it, then you are too far behind.

Now the most lively DeFi ecology on Ethereum, the scale of participating funds has reached 1.5 billion US dollars:

The ecology of 10 billion yuan is really not small.

And with the ecological development of Ethereum, other public chains have followed suit, copied a lot of essence, and "replicated" it on their own public chains, which made people feel full of vitality. However, at present, the DeFi ecology is still dominated by Ethereum, and other public chains are still in the state of exploration for the time being, and no outstanding outstanding players have been seen.

Of course, all this does not seem to be reflected in the price of ETH, so if you think the ecology is good and you want to buy ETH, you have to weigh it again.

Having said that, why do big Ethereum users feel that the underlying capabilities of the current public chain of Ethereum are not good enough?

Talking about this topic, I will treat everyone as novices for the time being. Let’s talk about the current performance of Ethereum first?

This is a random block height map:

Probably Ethereum currently has a maximum of 250 transactions in a block. If calculated based on an average of 15 seconds per block, the TPS is probably less than 20, so let’s calculate it as 20.

If you don't know what this concept is, you can put it this way: not enough. (This is also the source of why the community is currently debating whether to increase the gas limit).

The TPS is not high enough, so if the demand is strong, the cost of a single transfer is high:

Currently the most mainstream on-chain stablecoin transfers:

A single transaction requires a transfer cost of 0.7 US dollars, which is not high in theory, but it also isolates small transactions.

And the capacity is not enough, which also leads to slippage when decentralized exchanges are conducting contract transactions, such as uniswap:

(The above three pictures are from the Lianwen article)

In short, as mentioned in the first sentence at the beginning, the current ecological demand of Ethereum is strong, but the performance is far from enough, and the continuous congestion will lead to higher transaction costs. It is not that it cannot be used, but it still makes you feel uncomfortable everywhere. .

So how much will the performance of Ethereum 2.0 improve? OKEX CEO Jie Lun mentioned this passage in an interview with Cointelegraph:

Answering this question, Jay Hao said: "ETH 2.0 was designed with the highest level of security in mind. Therefore, it may take a few years before ETH 1.0 is fully integrated, because the two-way bridge between the two chains may lead to Vulnerabilities that make the chain easier to crack.

From the beginning, ETH 2.0 will have at least 64 times the capacity of ETH 1.0, and will continue to increase over time. "

From this answer, we can conclude that 2.0 will have a TPS 64 times higher than 1.0 from the beginning (because there are 64 shards), and with continuous development and more shards, TPS can continue to expand. But now the overall volume of Ethereum is there, and everything must be stable, so it may have to take it slowly.

Then some friends will ask, why is it 64 times? I asked this question as well, and the answer was this:

"To be honest, 64 times is also very impressive. At present, the TPS is close to 20, and the expansion of 64 times is over a thousand. Generally speaking, a TPS of more than 1,000 is of course not comparable to payment tools with 10,000 transactions such as Alipay and VISA, but it is enough. And if it is subdivided into the financial field, then over a thousand TPS and low transfer costs are enough.

Of course, this is theoretical."

You know, it is not easy for the cryptocurrency ecosystem to work hard from "unusable" to "enough". With a good enough hardware foundation, you can expect higher returns.

So Jay once again emphasized the importance of 2.0 in an interview with Cointelegraph:

Given the current economic crisis and the flaws exposed by the traditional financial system, cryptocurrencies and DeFi have never been more relevant than they are today. However, if this field continues to be user-unfriendly (meaning that the TPS is not high enough), and the public chain is often blocked, it will be difficult to open to the public.

Ethereum 2.0 is very necessary. So, risk or not, this is a crucial step.

In short, Ethereum 2.0 is necessary for everyone, it is a good story for investors, and it is a much stronger underlying foundation for the ecology.

But if you want to rush in and buy ETH after seeing this, I still advise you to stay calm, because Ethereum 2.0 has been delayed for a long time, and it may continue to be delayed according to the current situation.

At present, the best situation, please note, is the best situation. In the third quarter of this year, we will see the 0 phase of Ethereum 2.0. At this stage, Ethereum 1.0 and 2.0 are parallel, and you can lock positions to participate PoS is getting paid. But after all, this is only stage 0, and you can tell from his name that this is not a very comprehensive version.

The first stage will be 2021, and then there will be the legendary "64 times" upgrade. The final version of Ethereum 2.0, which everyone thinks of as "real ETH2.0", will arrive in 2022.

Please note that this is still the most optimistic situation. If it is not optimistic, we don’t even know who will come first in the next halving of Ethereum 2.0 and Bitcoin.

Again, before the arrival of Ethereum 2.0, it is a good time for other public chains to catch up. Once 2.0 matures, other public chains really have no chance.

Finally, I still want to express my concerns about defi. Usually there is no problem, I am afraid that there will be another 312: