Ethereum 2.0 are we talking about a world-wide economic revolution?
Ethereum 2.0 are we talking about a world-wide economic revolution?
Ethereum Epiphany
I have been reading articles about Ethereum 2.0 and also writing articles about Ethereum 2.0. But today I had an epiphany about realized the true enormity of the change ETH 2.0 brings to the crypto world and an big impact it could have on many people all over the world.
Ethereum 2.0 is Revolutionary Because...
First it changes the consensus model by which the network agrees that all transactions are valid.
Ethereum changes from a Proof of Work Consensus Model; which uses a network of powerful mining computers distributed all over the world to validate blocks of transactions, which also contain the entire ETH ledger from day 1 to current date, a huge amount of data, to a modified Proof of Stake Consensus Model, which uses a network much cheaper internet connected devices, which contain 32 ETH locked up, and are called Nodes, and these Node operators validate blocks of transactions.
Second it changes the way blockchain transaction are validated.
Node operators validate transactions differently then Miners did on ETh 1.0. Node Operators don't validate new transactions as additions to the entire ledger of Ethereum, which would requires the Node to process the entire ledger going back to day one for each transaction. But instead Nodes validate new transactions using much smaller snipets of code.This makes validating transactions faster and the Nodes can validate many more transactions per second.
Third, it changes the cost and complexity of the computing devices which validate transactions.
The less complex task of the Node Validators means they use less powerful, less complex and less costly. It also means there are more machines capable of performing the task. The task can be competed on computers, powerful tablets and powerful smartphones. So the task has become smaller, faster and it can be performed on a much larger number of machines. This is the best of all worlds in terms of efficiency, as it lowers cost, while improving performance. Conservative estimates are that cost will be reduced by a factor of 100 and speed will be improved by a factor of 100, and that's just at the beginning.
Fourth, the change in consensus model, consensus equipment cost and equipment configuration means...
A lower financial equipment cost barrier to participation. I am measuring equipment cost not just in terms of acquisition cost, but maintenance costs and infrastructure to support the complex computers of ETH 1.0 versus the infrastructure to support the smaller devices like phones, tablets and laptops of ETH 2.0.
Fifth, Ethereum 2.0 further decentralizes Ethereum
This creates the potential for node operators to exist in countries whose internet infrastructure couldn't support complex mining computers of ETH 1.0, but will support the smaller, less complex devices used on ETH 2.0. This also means the network is more widely distributed, and thus potentially more secure.
Sumary
ETH 2.0 results in a change in consensus model, consensus equipment cost and equipment configuration. This change is nothing short of revolutionary in terms of increase in transaction speed, lowering of transaction cost and lowered technological cost of participation in one of the most lucrative cryptocurrency projects in the world. This could result in the distribution of thousands, if not millions of dollars in mining fee profits from a small number of miners, in a small distributed network to a much larger distributed network in countries where dollars could result in life changing income.This could be a truly Legacy Event for Crypto?
Other Articles by Shortsegments about Ethereum 2.0 and the Blockchain.
What is Ethereum? Link to this article
Ethereum 2.0 Staking-Sharding & Validating
Link to this article
Explaining The Blockchain to Newcomer Link to this article
The easiest way to invest in Bitcoin, even if don't understand it yet. link to this article
Are you a finance or Cryptocurrency Blogger? Find Your Home in the Leofinance COmmunity! link to this article
How to Earn Money Blogging in Leofinance Community Link to this article
A Brief Look at Centralized and Decentralized Exchanges Link to this article
Thorchain: Atomic Swaps and True Decentralized Exchange for cryptocurrency Link to this article
Blocknet: Atomic Swaps and a network like the internet for crypto blockchains. Link to this article
Are you a finance or Cryptocurrency Blogger? Find Your Home in the Leofinance COmmunity! link to this article
How to Earn Money Blogging in Leofinance Community Link to this article
Internal Links
An article by @daltz on Ethereum 2.0
Link to @daltz post
Explaining The Blockchain to Newcomer Link to this article
External links
“A Dive Into Ethereum 2.0” By Decentralized Dog, Published on September 2, 2020 Link to this article This article by the writer named “Decentralized Dog is a review of the Ethereum 1.0 to Ethereum 2.0 transition and answers these questions; What Is Ethereum 2.0? How Is Ethereum 2.0 Different From Ethereum 1.0? What Are Shard Chains? How Does Staking Work? Will Proof-of-Stake Be the End of Ethereum Mining? What Are the Main Phases of ETH 2.0? Why Has Ethereum 2.0 Been Delayed? What's Going to Happen to the ETH 1.0 Blockchain? What Happens to the ETH That I Own Now? How Will ETH 2.0 Affect DeFi? Will This New Blockchain Technology Affect Ethereum DApps? What Does Vitalik Buterin Think About Ethereum 2.0? What Are the Main Downsides of ETH 2.0? Will the New Blockchain Increase Ether Prices?
Other External links
This article Ethereum 2.0 are we talking about a world-wide economic revolution? is also on my Patreon page. Link
Explaining The Blockchain to Newcomer Link to this article
Other External links
This article Ethereum 2.0 are we talking about a world-wide economic revolution? is also on my Patreon page. Link
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