Ether (ETH) The final touches are being put on Ethereum 2.0 a | Crypto Great | Bitcoin | DeFi

Ether (ETH)

The final touches are being put on Ethereum 2.0 and might be the last update before Ethereum switches to a Proof-of-Stake (PoS) system.

Transitioning to ETH 2.0 is important for the evolution of the Ethereum network. Transitioning from PoW to PoS is crucial for lowering fees on the network, as less computer computation is required for a PoS blockchain to remain secure and operational. One of the most critical parts to Ethereum moving to Proof-ofStake is the release of the updated version of the Beacon Chain. The Beacon Chain’s launch back in October 2020 introduced staking on the platform.

Becoming a validator by staking is easier than the current mining validation system. And the more people that participate in the network, the more decentralized and secure from attack it will become. Because of ease and availability, the network will become more safe with a PoS blockchain as the number of validators increases.

The Beacon Chain is the backbone of the PoS blockchain and its processing speed is competitive with the likes of financial titans PayPal and Visa.

In late October, Ethereum’s Beach Chain Altair update went live, taking one step closer towards the Eth 2.0 merge. Over 8.3 million ETH is currently locked on the new Ethereum network, valued at $33.5 billion.

The Altair upgrade is the first and potentially only update to the Beacon chain before fully transitioning to a PoS network. This is the first update helping the network transition away from poofof-work. Altair also prepares the network for “shard chains” which will increase the capacity of the network and improve transaction speed by extending the network to 64 blockchains.

As we wait for ETH 2.0, we understand that the transaction fees are high. Just remember, the more congested the network is the more ETH will be burned as individuals will pay high premiums to be included into the next block/transaction. Since the EIP1559 burning mechanism implementation back in August, the network has burned over 934,974 Ether, over $3.7 billion at today’s prices.