Written by Shivashish Yadav on   -  8 min read

What is Ethereum 2.0? How it is different from Ethereum? Explained.

What is Ethereum 2.0

Ethereum is the first cryptocurrency that brought the idea of ​​smart contracts and dApps to the world.

But the problem with Ethereum was that its transaction speed is very slow and as people join its network, new dApps and smart contracts will be built on it. Its issue will increase more and more.

Because all this used to go on till a few years ago, because so many heavy dApps and projects were not made on Ethereum, then Ethereum's network used to support them, due to which they could work comfortably.

But as the level of technology is increasing, heavy dApps are being built on Ethereum's network. Not working the way it used to do before.

And Vitalik Buterin, co-founder of Ethereum, knew this issue was going to come in the future, so he had already planned that Ethereum would need to be updated, and this update was named Ethereum 2.0.

Ever since the announcement of Ethereum 2.0, there has been a lot of discussion about what is Ethereum 2.0? When will it come? How to Stake Ethereum 2.0?. I will answer all these questions of yours in this blog, so stay with me in this blog from beginning to end.

What is Ethereum 2.0 (ETH 2.0)?

Ethereum 2.0 is a new form of Ethereum in which technical changes are being made to increase the speed, transaction capacity, scalability of Ethereum, so that everyone can use Ethereum with no hassle.

For this, Ethereum will be transferred from Proof Of Work to Proof Of Stake.

Proof Of Stake

Currently, Ethereum's blockchain works on Proof of Work (PoW) mechanism where mining requires a lot of electricity, time and powerful computer due to which mining becomes very expensive.

The miner who has the most power and the most powerful computer will mine the block. Because of this, a lot of electricity is consumed, and it also has an adverse effect on the environment.

PoW is used only to a limited extent where it is used only to verify the transaction.

The same Proof of Stake (PoS) does not require much power nor so many powerful computers. In PoS the miner who will hold and stake the most Ethereum with him is more likely to mine his block than the rest. Will be more

Transactions in PoS are much faster than PoW and PoS is much more scalable. That's why Ethereum is now moving from PoW to PoS.

How is Ethereum 2.0 different from Ethereum?

When Ethereum was launched in 2015, no changes have been made to it until 2020, which was fine for that time because by that time few people used Ethereum's network and also more dApps. They were not built on Ethereum, and the dApps that were made were light enough to run on Ethereum easily.

But as Ethereum's network became famous, more people started using it and because of advanced technology, heavy dApps started being built on Ethereum, due to which the problem of Ethereum's network kept increasing.

Because Ethereum did not update itself, but the dApps and smart contracts that are built on it are of today's new technology, which are updated every few times, due to which they run very slowly on Ethereum.

But in Ethereum 2.0 no such issue will be seen and dApps and smart contracts will run on it smoothly.

Whenever there is a transaction on the same Ethereum, then a fee has to be paid on that transaction, which is called Gas Fee. And for transacting on Ethereum, very high Gas Fees have to be paid, due to which it becomes very expensive to transact on Ethereum.

The process of this transaction is very slow, Ethereum can handle only 15 to 30 transactions in a second, which is very less and the number of users using it is very high, due to which the transaction speed is very high. Slows down.

If you want your transaction to be faster, then you have to tip the miner so that they verify your transaction first, otherwise you have to wait for the completion of the transaction for a long time.

This kind of problem will not be seen in Ethereum 2.0 because it will support over 1 lakh transactions in 1 second, due to which its transaction speed will increase significantly, and you will not have to pay more gas fees.

Why Ethereum 2.0 was needed?

There are a lot of cryptocurrencies coming out like Polkadot, Cardano, Stellar and Solana which call themselves Ethereum killer, if Ethereum doesn't update itself then all the people currently using its network will stop using it And others will use the cryptonetwork, which is also happening.

Because these crypto networks also do the same thing that Ethereum does, like building smart contracts on them, creating dApps, but making all this becomes much more expensive on Ethereum, while on Ethereum Killer, all this is made easily and in less cost.

This cryptocurrency does not replace Ethereum, so Ethereum is updating itself so that people can maximumly use its network, and they do not face any kind of problem.

When is Ethereum 2.0 coming?

Ethereum 2.0 is divided into four phases, Phase0, Phase1, Phase 1.5, Phase2, and as soon as these four phases are completed, Ethereum 2.0 will be completely ready. Its first phase has been completed in Phase 0 December 2020.

Beacon Chain was launched in Phase 0, which has started Ethereum Staking, where anyone can stake Ethereum and earn interest on it.

Shard Chain will be introduced in Phase 1, in which Ethereum's blockchain will be divided into 64 different parts. These chains will work in parallel with each other. Due to which, many transactions will be done faster in Ethereum at the same time. But smart contracts and accounts cannot work in this phase.

In Phase 1.5, Ethereum's current blockchain, which is working on PoW, will also be converted to Sharde where Ethereum will move completely from Proof of Work to Proof of Stake. Phase 1.5 will be completed by the end of 2021 or early 2022.

In Phase 2, Shard Chain will work at its full capacity and Shard Chains will also be able to exchange information with each other as well as reduce smart contracts on them and all this will be completed by 2022.

This suggests that Ethereum 2.0 will be fully launched in 2022.

How to Stake Ethereum?

If you have Ethereum, then you can staking directly on Ethereum and become a Validator as well as earn interest on it. If you want to become a Validator, then you must have at least 32 Ethereum.

Only then you will be able to stake Ethereum and earn interest on it, and to become a Validator, you must have a lot of technical knowledge, and it is very important to have an internet connection which runs for 24 hours so that whatever transaction is happening It can be verified at the right time.

Same if you do not verify the transaction then you will not get any interest and if you verify wrong transaction then you can be fined and some of the ETH which you have put on ETH stake can be forfeited.

What you put on the Ethereum stake, you can not withdraw them and the interest earned on it until the phase 1.5 of Ethereum is completed which will take at least 1 year to happen i.e. you have to wait for one year for your deposit To remove the Ethereum done.

Where to Stake Ethereum?

Even if you do not have much technical knowledge, you do not need to worry much, because Coindcx has come up with a solution for the same thing which is India's largest and secure Cryptoexchange, you can put Ethereum on Staking on Coindcx in which You don't need any technical knowledge and the special thing is that you can invest only 0.1 Ethereum on Staking.

You don't need 32 Ethereum to do Staking, if you do Stake on Ethereum then you have to wait one year to withdraw your deposited Ethereum.

Same if you're staking your Ethereum on Coindcx then you do not need to wait for a year, you can withdraw the Ethereum invested on your staking whenever you want, and also you can sell whatever interest you get on it. Taxes can be paid.


I hope you got to know a lot about Ethereum 2.0 from this blog of mine, what is Ethereum 2.0? When will it come? How to Stake Ethereum 2.0? If you liked this blog of mine, do not forget to share it so that other people can also know about the new updates of Ethereum.

If you have any question related to Ethereum 2.0 in your mind, then you can ask by commenting, we will be happy to answer you.