- ETH2 will unclog Ethereum and people are ready for it
- ETH2 testnet validators have been staking 2 million testnet ETH
- Even though the new protocol will introduce staking rewards, validators will be at risk of being slashed for bad blocks
Ethereum News Today – the ETH2 Phase 0 network upgrade is expected to go live in November of this year. ETH2 is an upgrade to the Ethereum Blockchain network. The protocol has been in the development stages for nearly four years now. Many people have started getting for the launch.
According to data issued by beaconcha.in, the testnet block explorer, more than 60,000 validator nodes are activated on the ETH2 Medalla testnet. On this testnet validators have collectively staked about 2 million testnet ETH or Gorli ETH. This data is proof that a good number of people have an appetite for Ethereum’s latest endeavor. These users have long anticipated the rewards that are forthcoming for a proof-of-stake network model.
Why does Ethereum 2.0 Matter?
The ETH2 update will address the network’s security and scalability issues by implementing changes. ETH2 promises to increase the network’s transaction processing capacity, from 15 per second (currently) to 100,000 per second. Low throughput on the network has caused cause skyrocketing transaction fees due to heavy usage, pricing out users who are unable to pay exorbitant fees for each interaction.
Ethereum and Bitcoin network’s use similar consensus mechanism’s, the PoW (proof-of-work consensus). The PoW uses specialized mining hardware and mathematical calculations to unlock blocks. ETH2’s most important change will be moving the network to a PoS (proof-of-stake) consensus mechanism. Here, the validators will stake ETH to vouch for each block added to the network. If a validator node vouches for an invalid block, the node’s ETH stake will be slashed to discourage the use of unsuitable blocks.
Validators Will be Rewarded for Attesting Blocks that are Accepted by the Network
Validators will be rewarded for vouching for, blocks that are accepted by the overall network. Staking rewards will depend on a range of considerations. However, calculators have been created to discover potential earnings. Additionally, to the Medalla testnet, a final short-term testnet called Spadina, will be launched. This short-term fix will offer early ETH2 developers and validators a rehearsal for ETH2’s genesis launch.
Spadina will only operate for three days because node operators will deposit testnet ETH. This fix will smoothen the transition and fire up ETH2 nodes. ETH2 will go live in November 2020. The official launch will only include the first phase of a rollout that could potentially extend to as far as two years. With the prospects of getting staking rewards and an opportunity to feature in Ethereum’s long-term plan, the growing number of community validators is a sign that users are ready to power the network.