From Mining to Staking: Proof-of-Stake Ethereum Transaction

in LeoFinance3 years ago

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The community that makes up Ethereum is working on an important project with the aim of improving the experience of its users who have been affected by frequent congestion and high fees, the project consists of a transition that turns its blockchains into a powerful virtual processing machine which they have called “Serenity” although in a popular way it is also known as Ethereum 2.0.

After 7 years in development, the network has faced high growth in such a way that it has fallen short of the high demand in its transactions, including the most complex ones that interact with smart contracts.
Nowadays the Ethereum blockchain processes between 3 and 4 times more transactions compared to Bitcoin but with less security, however, it is not yet possible to satisfy the progressive orders of the users without falling into congestion, as the congestion of the network, the cost of commissions for their use also increases, necessary for miners to use their potential to process each request.

Faced with this need for the high fees that have become a headache for users, currently the cost of Ethereum commissions rose surprisingly, so many users demanded an effective solution and as a result of this request the plan is to convert the Ethereum blockchain into a more scalable one while maintaining its fundamental ecosystem principles such as security and important decentralization.
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The Serenity plan proposes to increase the network processing speed, passing 15 transactions per second, and to avoid congestion the plan includes the division of the entire information load into small or fragmented parts, in this way to offer a robust system that conforms to user safety and a more sustainable ecosystem.

This means that Ethereum will abandon mining as it will shed the mechanism that uses computational power to validate each transaction and produce new network blocks, to affiliate a protocol that requires the possession of cryptocurrencies.