Learn step by step everything about Ethereum 2.0
Ethereum’s rise over the last three years has been huge. A whole new industry of software developers, innovators, and entrepreneurs are building products on Ethereum. Despite its success, it is still a growing technology. But to keep growing it needs to address a lot of key issues.
In this article, we want to give you an easy explanation of Ethereum Plasma. Ethereum has currently the ability to make 13 transfers per seconds. That is really low capacity. So if Ethereum wants to replace visa and act as digital cash than it needs to scale up its capacity.
A lot of people use ICO smart contracts and tokens. They operate on top of the Ethereum blockchain. As a result, the Ethereum network is processing over half a million transactions per day. Bitcoin only manages to process around 50.000 transactions per day. So Ethereum can handle more than 10 times the amount of transactions of the Bitcoin network. But as Ethereum got bigger, some huge problems evolved.
There is an existing proof of work chain that we have. So the process requires a ton of computing power. Proof of works gives more rewards to people with better equipment and connection. This means the higher your hash rate is, the better is the chance to be the first one that solves the puzzle. So the proof of work concept is really wasteful because only one miner gets rewarded and all the work of the other miners is wasted. To change that we need to implement the proof of stake concept.
Find out what Ethereum BLS Aggregation Signature is and what makes it so useful. If each vote was a transaction, the blockchain would have to process all the votes step by step within a tight time period. This puts a limit on the number of validators that can take part. That´s why we need aggregation signature, so more validators that can participate and therefore improve the security.
In this article, we will show you how Ethereum Sharding will solve the scalability problem. So the idea of sharding is building sub blockchains on top of the Ethereum blockchain. The goal is to keep the main chain exactly as it is. As a result, transactions happen on the sub chains, but the main chain will still secure them.
Ethereum Validator will be the new miners! So Ethereum is making big changes to solve the scalability problem. Therefore they introduced a different solution to this problem. An Ethereum Validator is one of the key components for these solutions.
When you talk about Ethereum, smart contracts aren’t far away. With them, you can create applications and more. Ethereum smart-contracts are currently written in Vyper or Solidity. Ethereum Virtual Machine (EVM) then compiles the code. But this leads to a lot of scaling problems. So to solve these problems, they developed eWASM. It is based on WebAssembly (WASM) and is able to make a huge difference.