Understanding Ethereum 2.0 and its migration from Ethereum 1.0
When I have heard about Ethereum 2.0 I didn't know if it will be a separate blockchain, if it will be a hardfork on Ethereum or something else. We've all know by now that Ethereum 2.0 will be running as a Proof of Stake (PoS) blockchain, while Ethereum 1.0 is a Proof of Work (PoW) blockchain. So is it the same blockchain or not? This I will be trying to explain here.
Ethereum 2.0 is a Proof of Proof (PoS) beacon chain that has its supply coming fro Ethereum 1.0 through a storage contract which will destroy the ETH in the original blockchain and generate the same number of ETH in the beacon chain. This will not be a hardfork as there won't be two ETH in the same time, but rather a migration of ETH from one chain to the other.
In the beginning of Ethereum 2.0 the ETH will not be fully migrated, but will be rather locked and pledged to the new beacon chain. In time probably this will be settled and the ETH will move completed to the beacon chain. One fact to be known on this is that you can migrate your ETH from Eth1 to Eth2, but you cannot move it back. It is a unidirectional migration from Proof of Work (PoW) Eth1 to Proof of Stake (PoS) Eth2 model.
Considering the locked state of your ETH will imply that you will need to run two clients on Ethereum blockchain - a Validator client on Eth2 to confirm transactions and new blocks created and a client on Eth1 to monitor and confirm the new staked deposits. This will cover the transition period between Eth1 and Eth2 (if it will be fully done, it remains to know) and help with keeping the speed of Eth2 without adding additional validation layers. Hopefully this bring some light upon how ETH is migrating from Eth1 to Eth2 and the logistics of it.
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https://twitter.com/behiver1/status/1328349184701968388
Would the migration of ethereum to 2.0 end up reducing the transaction fees of eth?
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That is one of the objective for migrating to Ethereum 2.0. Just that it will take few years to have the complete transition done.
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Wow.. That's great. I hope it would take a lesser period of time.
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I was told (I have no first hand knowledge) that the transaction fees will still be a problem for some reason.
It will be interesting to see what other blockchains start to siphon some of the apps from Ethereum.
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Indeed it is a big project and the logistics are crazy, we'll need to see if the fee problems will be finally solved.
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Ethreum is one of the biggest thing in Crypto currently because of all the activities going on with it and I feel migrating into other versions will only make it better as for the unsteady fees it's really limiting it's potentials
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Yeap, it could be a trigger for great things and if we remove some of the technical barriers we might see exponential growth. At that point I wonder if any business will ask itself before embracing and using the Ethereum infrastructure.
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Thanks for sharing this info about the migration of ETH from 1.0 to 2.0!