The Road from Ethereum to Eth2 Update Goes Smoothly

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On January 20, 2021, Ethereum lead developer Danny Ryan wrote a new report concerning the existing state of affairs in the Eth2 growth of the team. He also sought to demystify Eth2, making it clear that to form a more stable, scalable, and energy-efficient Ethereum, Eth1 and Eth2 would be combined together.

Production of Eth2 On Track

Since the successful introduction of the Eth2 Beacon chain last November, the price of ether (ETH), the world’s second-largest cryptocurrency, has started to skyrocket and it seems like Vitalik Buterin’s Ethereum could only reach the moon this year.

In a long blog post titled “The State of Eth2,” written by Ethereum Core Developer Danny Ryan on January 20, the beacon chain currently has 2.5 million ETHs ($3.1 billion at press time) involved in it.

There are currently a total of 105 Eth2 stakers, as seen on Etherscan, with Kraken crypto exchange occupying the frontline with 374,208 ETHH (14.4 percent). There are also large quantities of ETH involved in other markets and crypto stake pools.

Eth1 Does Not Go Away

While some crypto enthusiasts still have the misconception that the change from proof-of-work (PoW) to proof-of-stake (PoS) agreement by Ethereum would make eth1 fully redundant, Ryan has cleared the air on the issue, stating that both eth1 and eth2 will continue to exist, as the phrase is clearly used to refer to the Ethereum network’s separate layers.

He wrote:

“The terms “eth1” and “eth2” are misnomers. If I had my way, I’d toss them out forever. These designations – eth1/eth2 – imply a false sequentiality. They imply that eth1 will be deprecated in favour of eth2, that one is being left behind for the other. Instead, the terms actually represent different layers of the stack.”

Ryan also states that Eth1 requires the process and enhancement of the user layer of the network (state, transfers and accounts), as it affects end-users of Ethereum. In the other hand, Eth2 is a set of changes intended to change the central consensus of Ethereum from the existing PoW to a “more sustainable, and scalable proof-of-stake,” and eventually make the user-layer of eth1 stronger.

While the Eth2 beacon chain has been running smoothly, Ryan has disclosed that the team expects to continue checking, reviewing and improving it during this year, before integrating eth1 and eth2.

Moreover, he also categorically claimed that talks are now being conducted by the implementation team on several primary improvements to the beacon chain, including validator benefits, state administration, and more.

In addition, Ryan says that either before or after the eth1+eth2 merge, the problem of insane gas fees on the Ethereum network would be resolved, as the implementation of EIP 1559 is entirely independent of the Eth2 growth.

He concluded that EIP 1559, a greatly expected upgrade to the fee market for Ethereum, is also sufficiently independent of eth2 and can occur either theoretically before or after the merger of eth2. That said, in the past 12 months, R&D on this item has picked up momentum, and in 2021, we will optimistically see 1559 fee mechanics on mainnet.

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