Ethereum 2.0 replaces the current, computationally-intensive proof-of-work consensus mechanism with a proof-of-stake one. The launch of Ethereum 2.0 approached a step closer with the first successful mining and validation of a block on a testnet. People who hold a large number of tokens will be rewarded with fees for verifying transactions under the proof-of-stake model. The model is replacing the method of creating blocks by using massive amounts of computing power.
Ethereum 2.0 is scheduled to launch in July.
It is expected that Ethereum 2.0 will be much faster and more scalable upon its launch, which is tentatively scheduled for July this year. The improved scalability will come via the implementation of sharding. This process breaks up the Ethereum network into smaller nodes to handle many times transactions as compared to as it does now. Prysmatic Labs, an engineering team working on the Ethereum 2.0, launched the Ethereum 2.0 Topaz testnet in mid-April, which replaced the previous testnet called Sapphire. A testnet allows developers to test the stability and functionality of a blockchain before the public launch. The Topaz testnet utilizes the same mainnet configuration planned for Ethereum 2.0’s initial launch and requires validators to stake the full 32 ETH that will be needed with the 2.0 mainnet.
“Note that this is likely not quite yet ‘THE Multiclient Testnet™,’
Ethereum co-founder, Vitalik Buterin tweeted, note that this is likely not quite yet ‘THE Multiclient Testnet™,’ as we are likely going to do one or two restarts soon to have more chances to test the genesis mechanism. But still, huge progress and excellent work by Prysmatic Labs, he added. Last month security consultant Least Authority completed an audit of Ethereum 2.0 and praised its “well thought out” specifications. Later last year, Ethreum founders Vitalik Buterin and Joesph Lubin had admitted that they knew Ethereum was never designed for scalability despite ICO documents claiming otherwise. Vitalik and Joesph both faced criticism from the crypto community after their admission.