Ethereum 2.0 Coming Soon, Here's What You Should Know

JAKARTA – Speculation about the switch from Ethereum to Ethereum 2.0 is getting more intense. The reason is, currently Ethereum uses a proof of work (PoW) consensus algorithm like Bitcoin.

PoW enables mining by using high-power computing to solve complex mathematical puzzles to verify transactions. Because of this, PoW is claimed to be energy-intensive and not environmentally friendly and has high transaction costs.

Attempts by Ethereum developers to switch to a proof-of-stake (PoS) consensus algorithm became even more massive after transaction fees on the ETH network were overvalued. Ethereum's switch from PoW to PoS is aimed at increasing network speed, scalability, and efficiency on the Ethereum network so that it can process large volumes of transactions and reduce service bottlenecks. Among several other cryptocurrencies that use PoS are Algorand (ALGO) and Cardano (ADA), as well as Solana (SOL).

However, it is not yet known when Ethereum will switch to Ethereum 2.0 or from PoW to PoS. But some time ago ConsenSys CEO Joseph Lubin gave a leak regarding the transition.

In an interview with Decrypt last December in Miami, Lubin predicted that Ethereum 2.0 would come in the 2nd quarter and could also be pushed back to the 3rd quarter of 2022. At the Camp Ethereum event held in Wyoming last week, Lubin again discussed Eth2.0.

"A merger is happening, surprisingly, over the same timeframe," said Lubin. "So my estimate remains the same. We have a team working hard, really hard on it."

Then Lubin discussed his next plan, which is to transmit the current Ethereum mainnet to the Beacon network which operates in parallel. This will evolve into Ethereum 2.0. This mechanism prompted the Ethereum Foundation to change the name Ethereum 2.0 to “Consensus Layer” or “Consensus Chain,” Lubin said, as reported by Decrypt.

On the other hand, Bitcoin which uses a proof of work mechanism has drawn criticism from various circles because it is considered too large in consuming energy and has a negative impact on the environment. This is also what prompted Elon Musk to suspend Bitcoin payments for Tesla's electric car purchases last year.