Ethereum, the second-largest cryptocurrency on the charts has always been considered as the first major altcoin to die. Do not take this from me, but rather from the umpteen comments on social media that have attacked the Vitalik Buterin Co-founded cryptocurrency, mainly for its slow development cycles.
Despite the response from the communities, Ethereum has strived solidly to make the network faster and more seamless by creating Ethereum 2.0. In a new report compiled by Chromatic Capital, users were given the run-through of what they could expect from ETH 2.0 as well as the flaws in the first iteration of Ethereum.
Broken promises, missed deadlines and a lack of communication between developers and users have been some of the major misses in Ethereum’s first rendition. The Ethereum that we all know today [ETH1] is slow and expensive, characteristics that are not attractive in the digital assets space. The entire ETH network is throttled at 15 TPS and if complex processes are involved, the cost becomes astronomical.
One of the main reasons why ETH1 lacks in so many aspects comes down to one point: the high cost of decentralization. For ETH to work smoothly, it has to run tangible resources for lengthy periods of time along with facing communication lags and slow participant speeds. According to the report:
“If the Ethereum network as it’s currently architected started to process too much data in too little time, then consumer hardware such as laptops or personal servers would be unable to keep pace, and the only functional nodes on the network would be large data centers. This would severely compromise Ethereum’s decentralization.”
These are some of the problems that Ethereum 2.0 aims to tackle. Right off the bat, Ethereum 2.0 will be able to process tens of thousands of transactions per second compared to the first iteration’s measly 15. ETH2 also uses the Proof of Stake [PoS] mechanism rather than the Proof of Work [PoW] mechanism used by ETH1 and Bitcoin.
Since ETH2 uses PoS, new Ether is minted whenever necessary and said transactions are processed by validators verified by the foundation. Other than this, ETH2.0 also tackles the problem of developer friendliness. Using ETH2, developers will be able to create their own transaction processing methods called ‘execution environments’.
The upgraded ETH system will empower holders to utilize different o use other rules for transactions while being managed by the same validator set. The organization has additionally also taken stringent steps that there are no more delays in the Launch as 2020 is viewed as the year altcoins perform superior to Bitcoin.