Ethereum 2.0 has been launched, where is the ETH market headed?

The Ethereum 2.0 genesis block was confirmed at 8:00 pm on December 1st, and the long-awaited Ethereum 2.0 finally came.

Throughout the history of development, first there was CryptoKitties in 2017, and then to this year’s DEFI wave. It can be said that with the increase of interaction pressure in the current ETH chain, it is necessary to increase the handling fee to obtain a better experience. Sometimes there will be a "gasoline war".

How exactly is Ethereum 2.0 different and what does it mean?

Compared with 1.0, 2.0 mainly introduces two improvements: the proof-of-stake mechanism of PoS and the ShardChains technology. Compared with POW in the 1.0 era, which consumes a lot of power costs and hardware costs, the POS in the 2.0 era is more friendly, so the handling fee will be significantly reduced.

Therefore, its purpose is also obvious, mainly to improve the scalability, throughput, and security of the Ethereum public main network. 2.0 will not clear anything on 1.0, and 2.0 will run together with the 1.0 chain to ensure continuous sex. At the same time, from the perspective of technical ecology, more and more applications around Ethereum are developing rapidly. Whether it is scalability, high availability and other performance issues, they are all being tested. On the one hand, the upgrade of Ethereum is to meet the needs of Ethereum The development of applications, on the one hand, is to make them more "decentralized", and develop together with high performance while grasping "decentralization".

However, next, Ethereum 2.0 may go through three important stages:

Phase 0: Beacon Chains;

Phase 1: Shard Chains;

Phase 2: Cross-shard transfers, contract calls, eWASM replacing the Ethereum Virtual Machine (EVM), etc.;

Each phase will improve Ethereum's performance in different ways.

Compared with Phase 0 and Phase 1, the definition of Phase 2 is not yet clear, but it will involve adding Ethereum accounts and enabling transfers and withdrawals, implementing cross-shard transfers and contract calls, and building an execution environment so that it can also be used on Ethereum 2.0 Build scalable applications on top of it, and bring the Ethereum 1.0 chain into Ethereum 2.0, and finally turn off proof-of-work.

In the following phases 1 and 2, Ethereum will integrate 64 new shard chains on the basis of the beacon chain to improve transaction throughput; then virtual machines and smart contracts will be introduced to merge the 1.0 mainnet into In the 2.0 network, it is fully realized to operate under the PoS mechanism. According to official estimates, this will be completed in 2022.

Regardless of the future, at least for now it seems that it has taken a very monumental step.

The smooth upgrade of Ethereum 2.0 will create a fairer network environment. With the POS consensus mechanism, the more people there are, the wider the consensus is, and the network environment is relatively fairer. At the same time, it will also create unpredictable user growth and economic growth. Due to the lower participation threshold, users have more opportunities to enter Ethereum, which can attract more user traffic. In addition, delegation and pledge under the new consensus mechanism may create even greater economic growth opportunities.

However, before, 61% of investment forecasters believed that ETH 2.0 could not be launched as scheduled on December 1.

Similarly, the upgrade of Ethereum 2.0 also has a negative side.

There is a negative view that the reason why it has been proposed for so long and the implementation of phase 0 until now is also because there are essential core defects that cannot be resolved. Now even if it is divided into three stages and a little bit of experimentation, the outcome is likely to be a little bit backwards or chaos, rather than progress. The core flaw lies in the smart contract and the consensus mechanism. If these two basic problems are not resolved, it is hopeless to rely on sharding to improve efficiency and expand application support capabilities.

However, judging from the current trend, the probability of the emergence of Ethereum 2.0 may be too high for the price of ETH. In addition, Bitcoin has now reached a record high and may continue to make new highs. Therefore, the overall ETH market in the future may be It's hotter.

However, it should be noted that the speculative market is always full of uncertainty, let the bullets fly for a while!