ETH2.0 is coming, what improvements and innovations are there?

At the end of this year, the most anticipated thing is probably the launch of ETH2.0. Although the release time of ETH2.0 phase zero has been changed again and again, it was delayed from the beginning of the year to the second quarter, and now it is pushed to the fourth quarter again. But there is no doubt that ETH2.0 is still one of the few hot spots in the current market. So, what are the stages of ETH2.0 going online? What impact will it have on ETH1.0? What improvements and innovations are there? At 7 o'clock tonight, 58 Academy invited Sherry, CEO of Apocalypse Technology, to talk with you about ETH2.0~

The following is the record of this live broadcast

Zilu: When will ETH2.0 be officially launched? Will it affect the price of ETH currency after going online?

Sherry: Ethereum 2.0 will be launched in early December. In July and August, the price of ETH has risen very high, reaching $450, preferably $470. From the perspective of the overall price, ETH2.0 will lead to a large number of ETH mortgage, the price of Ethereum will rise in waves, and because ETH2.0 staking is a one-way ticket that can only be entered and cannot be withdrawn, it is impossible to withdraw the staking ETH within 2 years, so the supply side should reduce a lot of selling pressure , which is definitely an optimistic trend for currency prices.

Zilu: What are the stages of ETH2.0? Can you introduce them in detail?

Sherry: The realization of ETH2.0 is not an overnight project. It needs to be divided into multiple stages, the most important of which are the first three stages: stage 0, stage 1 and stage 2. Phase 0 will introduce the Beacon Chain (Beacon Chain) as the "command and control" center of the entire Ethereum 2.0 network; Phase 1 will introduce shard chains, allowing data to be stored on these shard chains but not in the shard chain Transactions are processed on the shard chain; Phase 2 introduces the shard virtual machine, allowing transactions to be processed on the shard chain. Since the beacon chain of phase 0 will run the POS protocol Casper, it can be seen as a new journey for Ethereum to enter POS.

Zilu: What are the differences between ETH1.0 and 2.0? What improvements or innovations does ETH2.0 have?

Sherry: ETH1.0 is POW proof of work; and ETH2.0 POS mechanism, that is, proof of equity, that is to say, how much ETH you have in hand proves how much labor you have paid, so ETH2.0 needs pledge Staking. All validators who pledge 32ETH can be counted as "PoS miners" of ETH. Moreover, once ETH2.0 is actually launched, at the technical level, ETH2.0 has three most important upgrades, namely: 1) Casper consensus; 2) sharding; 3) eWASM virtual machine. These three technical upgrades allow the Ethereum network to achieve high performance and scalability at a low cost. In October, when Vitalik Buterin shared the details of the new Ethereum roadmap, Vitalik emphasized that the new Ethereum expansion strategy will move the blockchain ecology to rollups, Plasma, and state channels. In the ETH1.5 stage, the tps of Ethereum will be able to reach 100,000. What does it mean when Tps reaches 100,000? At present, the processing speed of ETH1.0 is about 15 to 25. Assuming that the middle 20 is taken, it means that the tps will be increased by 500 times. This will completely solve the problem of insufficient performance of Ethereum, and the era when CryptoKitties blocked Ethereum will be gone forever. At present, the biggest advantage of ETH2.0 is that TPS can be improved, so that in the high-frequency application market, the current problems such as network congestion, high gas, and slow operation in DApp will disappear.

Zilu: Will the launch of ETH2.0 affect ETH1.0? What role will ETH1.0 play after it goes online?

Sherry: First of all, after the PoW chain transitions to the PoS chain, no matter whether it is ETH1 or ETH2, it will run on the ETH2.0 network. In the end, there is only one kind of ETH. However, for now, ETH1 and ETH2 are tokens of two different chains. After the launch of the beacon chain, there is a transition period between the two Ethereum chains. Users deposit ETH into the storage contract, and can obtain ETH2 token incentives through the ETH2.0 network. With the stabilization of the ETH2.0 network, ETH1.0 will gradually become a fragment of ETH2.0. In other words, ETH2.0 is not a hard fork of Ethereum, so there will be no forked tokens, and current ETH (ETH1) holders will not receive two assets. For example, in the BCH hard fork in the history of Bitcoin, users who own BTC at that time will get the same amount of BCH. Since ETH2.0 is not a hard fork, there is no free candy.

Zilu: What is the significance of participating in the launch of the ETH2.0 beacon chain mainnet for the exchange of ETH1 and ETH2?

Sherry: From a historical point of view, this will also be the second production reduction of Ethereum. Once activated, nodes running Constantinople will be incompatible with previous versions of Ethereum, resulting in a "hard fork" of the blockchain. The exact activation time of this upgrade is the Ethereum blockchain When the height reaches 7,080,000. One of the most important reasons for many people to participate in the launch of the beacon chain mainnet is to expect stable returns with relatively low risks. If only 524,288ETH is deposited, then its APR income can reach 21.6%; if the ETH participating in the pledge reaches 2,450,000, its return rate can reach 10%; even if the locked ETH is as high as 10,000,000, its APR income can also reach 4.9%, much higher than the ETH storage income of other DeFi protocols. In addition, it should be noted that the annualized rate of return of ETH pledge is calculated in ETH, not USD, which means that as the price of ETH increases, its actual APY may be higher than the current rate of return, which will Incentivize more people to stake ETH and earn more ETH.

Zilu: What are the risks of staking ETH and becoming a validator on ETH 2.0?

Sherry: First of all, there is at least a 1-2 year lock-up period for staking ETH on ETH2.0. The ETH pledged by the verifier and the rewards obtained through staking have to wait until phase 1 to unlock, at least 1-2 years. For users, it is sacrificing long-term ETH liquidity to bet on Ethereum after 2 years progress and metamorphosis. On the other hand, many industry participants believe that the market has entered a bull market cycle, and long-term lockups of more than 32 ETHs mean that these funds are excluded from the threshold of new investment opportunities. On the other hand, after the opening of phase 1, the locked ETH may form a large selling pressure. The verifier propped up the price bubble of ETH by locking the position, but after the lock-up period is over, if the verifier wants to exit, it may not be able to find a high price and leave the market immediately. Therefore, if ordinary investors really want to participate in ETH2.0 pledge, they still need to think carefully.