Even if you know very little about the cryptocurrency industry, then you must already have an idea about Ethereum (ETH). Ethereum (ETH) is currently the second-largest cryptocurrency in the entire cryptocurrency industry in terms of market capitalization.
However, when it comes to innovation, Ethereum (ETH) is the cryptocurrency that changes the entire course of history for the crypto-verse. Although it was launched after 6 years of the launch of crypto-verse in 2015, yet it proved to be a revolutionary crypto in the industry.
When it came to being traditional, Ethereum (ETH) did offer the users the ability to mine and buy/sell Ethereum (ETH) just like Bitcoin (BTC). However, the Ethereum (ETH) network managed to expand the boundaries and the bubble in which the crypto-verse had become accustomed to operating in.
Almost all of the cryptocurrencies introduced prior to Ethereum (ETH) offered the same mechanics. However, Ethereum (ETH) allowed the users to create their own cryptocurrencies and decentralized applications (DApps) that would run on the Ethereum blockchain.
This gave birth to a new idea and the entire cryptocurrency industry was revolutionized. Since then, several cryptocurrencies and more than 3,000 DApps have been introduced on the Ethereum (ETH) network.
Over time, Ethereum (ETH) blockchains have managed to gain almost the same amount of user-base as Bitcoin (BTC), which is enormous. As there are too many DApps, cryptocurrencies, and other services running on Ethereum (ETH), the network became plagued with delays, lags, disconnections, and much more.
One of the major problems that the users faced was the constant increase in the gas prices (fees) that the users would incur whenever making a transaction for Ethereum or Ethereum-based cryptocurrencies.
Therefore, Ethereum (ETH) development team came up with an idea to tackle the problem and bring the situation under control. It was in the beginning of the 4th quarter of the year 2020 when the ETH team announced that they were going to launch the Eth2 solution.
The Eth2 is going to be a new infrastructure that has been designed and developed by the ETH teams. They have done it in order to tackle disconnects, lag, delays, and high fees problems. However, there is one big problem that comes with the new upgrade, which is that it is going to be on a completely separate blockchain.
Furthermore, the new Eth2 platform would be a proof-of-stake consensus protocol but the previous Ethereum version was a proof-of-work consensus protocol.
This means that the users on the older version will have to start from scratch. Even the equipment they had for mining on Ethereum’s older version would be obsolete and they will have to acquire new equipment in order to start mining on Eth2.
It has been announced by the ETH development team that Eth2 will be going live in action from July of 2021. So, Ethereum’s development team has to work something out for the traditional ETH miners who are unhappy about the upgrade.