Ethereum Upgrades: All you need to know about Ethereum’s Istanbul
Ethereum 1.0 was the first version of the platform to fully integrate decentralized applications (smart contracts).
However, with the greater popularity came an increased burden that the original network was unable to fully deal with, and a set of new solutions was needed to grant “Ethereum” a performance rise — meet Ethereum Upgrades, which was formerly known as Ethereum 2.0, and that attempts to achieve exactly that.
The restrictions imposed by Ethereum 1.0.
Ethereum is a Network that is highly capable, but it does have several restrictions that make it difficult for it to achieve true mainstream acceptance.
These may be summed up in three essential areas, which are sometimes referred to as the trilemma of blockchains.
These issues include scalability, security, and operating in an environmentally sustainable manner.
Ethereum has a good security model, but it is lacking when it comes to scalability and being nice to the environment.
While “Ethereum” has a good security model, it is lacking in the other two areas.
The limitations of scalability for Ethereum
Proof-of-Work (PoW) is the consensus method that is utilized by Ethereum 1.0.
The purpose of this mechanism is to ensure that all transactions conducted on the network are secure.
Even while it achieves it exceptionally well, its performance is poor when it’s put under stress.
To put it another way, Ethereum’s transaction speed degrades proportionately with the number of customers it serves.
Another drawback of PoW is its high transaction fees, which are also rising as a direct result of an increase in the amount of traffic on the network.
In addition to this, each and every Ethereum transaction is processed by a single blockchain, which can cause the flow of transactions to become congested and processing times to lengthen.
It should go without saying that this essentially renders Ethereum 1.0 unscalable on a global scale.
Ethereum’s relationship with its surrounding ecosystem
The Proof-of-Work (PoW) mechanism that Ethereum 1.0 employs make computation its foundation for trust.
Despite the fact that this is a foolproof system, the specialized computers that are necessary in order to complete the tasks necessary waste a significant amount of electricity.
There are many who believe that this is a needless waste of energy and that there should be other ways to secure networks that are friendlier to the environment.
How the Ethereum Upgrades intend to be of Service
In order to overcome the aforementioned constraints, the network’s decentralized autonomous organization (DAO) came to the conclusion that it needed to deploy a series of updates known as Ethereum Upgrades (formerly known as Ethereum 2.0).
Among the upgrades are the replacement of the Proof-of-Work (PoW) consensus mechanism with the Proof-of-Stake (PoS) mechanism and the transformation of Ethereum from an ecosystem consisting of a single chain into a network of numerous blockchains.
The Proof-of-Stake (PoS) protocol is safe, scalable, and environmentally benign.
Proof-of-Stake (PoS) is an alternative to Proof-of-Labor (PoW) that does not rely on computational work but rather on collateral in ETH that nodes (the people who manage the network) put up in order to take part.
This results in a significant reduction in energy consumption while maintaining the same level of security as previously.
Ethereum as an ecosystem for several chains
Ethereum will be able to effectively scale to global acceptance with cheap costs and quick processing times if it moves away from the practice of conducting all transactions on a single chain and instead distributes them among multiple chains.
The future plans for Ethereum and its prospects
Since Ethereum Upgrades are more of a continuous process than a single point in time, it is difficult to pinpoint a precise date for when they will be implemented.
At the time of this writing, the second and most recent phase of the upgrade is under progress, and the anticipated delivery date is somewhere around the second quarter of 2022.
Despite the fact that it has some shortcomings, Ethereum 1.0 is currently one of the most widely used crypto ecosystems.
On the other hand, Ethereum Upgrades (formerly known as Ethereum 2.0) has plans to solve scalability and operational issues in the relatively near future, and quite literally bring the network up to speed for many years to come.