Slowly but surely ! – 
With the recent deployment of the deposit contract, Ethereum 2.0 seems to be within reach. 
However, this major update is far from reaching the end of the 3 stages that compose it. 
But what are these stages?

Why Ethereum 2.0?
Before going into the details of the steps that make up the launch of 
Ethereum 2.0 , let’s go back to its rationale.
When it was launched, 
Ethereum was based on a consensus mechanism similar to Bitcoin, namely the 
Proof of Work . 
A perfectly logical choice given that at the time, it was the most widespread and proven consensus mechanism.
However, from 2015, namely the year of launch of the Ethereum protocol, its developers already have in mind the idea of ​​a 
transition from 
Proof of Work to Proof of Stake.

“ 
Proof of Work involves the inefficient conversion of electricity into heat, Ether and grid stability, and we would like to not heat the atmosphere with our software more than is absolutely necessary. 
Unless we buy carbon offsets for every unit of ether created (is that such a bad idea?), We need an algorithmic solution: the infamous Proof of Stake. ”

– 
2015 Vinay Gupta on the Ethereum blog , in 2015
Thus, the promises of the 
Proof of Stake are numerous: gain in 
speed , 
efficiency and 
accessibility . 
In addition to this is added the resistance to cartelization of the 
mining ecosystem around a few central players 
– even if this formation of cartels can then try to deport it self to
 the side of the stakers.

However, Ethereum was only in its infancy at the time. 
Therefore, the 
Proof of Work is maintained and the 
Proof of Stake postponed to a later update: 
Ethereum 2.0 .

The more years go by, the more Ethereum 
reaches its limits in terms of transaction processing capacity .
This phenomenon has repercussions such as the 
significant increase in costs or the 
paralysis of the network . 
In fact, it is imperative to rethink the system to allow it to 
process more data .
Also, the 
Ethereum 2.0 project 
has seen other 
technical improvements added to it over time, such as the 
sharding that we will see later in this article.
Thus, on 
November 4 , 
the Ethereum foundation published the Ethereum 2.0deposit agreement
 , the first stone in the edifice that this update represents. 
However, this in no way marks the final launch of Ethereum 2.0, but the beginning of 
a series of successive 
updates , 
broken down into 3 phases that could span 
several years .
Phase 0: the 
beacon chain
Phase 0 was initiated on 
November 4 , this represents 
the first phase of the transition to Ethereum 2.0.
In practice, phase 0 is the phase that introduces the 
Beacon Chain . 
The 
Beacon Chain is the 
central blockchain of the Ethereum 2.0 network . 
The latter performs two main missions:
ensure the consensus system , namely the 
Proof of Stak e;
ensure synchronization between the 
shards
 , namely the various subnetworks which will be added to them in the future.
sharding ethereumSharding: a fragmentation of the blockchain thanks to cryptographic evidence – Photo by Hsiao-Wei Wang.
Thus, as we have just seen, it is the 
Beacon Chain that will initiate the transition to 
Proof of Stake . 
However, it will only be launched when the 
deposit contract (the one deployed on November 4) will hold 
524,288 ETH  deposited by  
16,384  future validators.
At the earliest, the developers announced that the production of blocks on the 
Beacon Chain could start as 
early as December 1 . 
However, 
given the progress of the deposit contract , it is very likely that this date will be postponed.
In fact, 
the 
Beacon Chain will not be of much use
 . 
Indeed, no functionality relating to transfers or 
smart contracts will be present. 
This chain will only allow you to initiate the 
Proof of Stake on 
Ethereum 2.0 .
Phase 1: the 
shards chains
Once the 
Beacon chain is up and running, 
phase 0 will give way to 
phase 1 , which aims to introduce 
shard chains .
The 
Shard chains have the particularity to enable 
cutting the web into a 
plurality of sub-networks , responsible for independently process their data.
“Sharding is a process of dividing a database horizontally to distribute the load – it’s a common concept in IT. 

The official Ethereum site.
The state and data of these different subnets are then 
synchronized by the 
Beacon chain
 , which acts as the backbone of the system, ensuring data consistency.
The 
Shards bring many benefits, such as 
easier access to complete nodes by reducing the required hardware prerequisites. 
It can also help 
increase the number of transactions per second that the blockchain can process.
“The shards themselves will gain in characteristics over time, in several phases.”
The official site.
The 
Phase 1 Ethereum 2.0 should be released in 
2021 , according to information published by the Ethereum foundation. 
However, this information should be taken with a grain of salt in view of the 
many delays already encountered by Ethereum 2.0.
Phase 2: 
The Docker
Once the 
Shards are deployed and operational, 
Ethereum 2.0 will enter 
the third and final phase of its deployment, namely 
phase 2, entitled 
“The Docker” .

This last step is, it would seem, 
the most important of the transition. 
You might have noticed, but no mention of 
Ethereum 1.0 was made in phase 0 and phase 1.
Indeed, during the deployment of phases 0 and 1, 
Ethereum and Ethereum 2.0 will be two 
separate blockchains that will operate 
in parallel .
Transaction hypothesis between ETH 1.0 and ETH 2.0, the two chains co-existing momentarily.
Thus, 
phase 2 aims to integrate the “old” Ethereum , often referred to as Ethereum 1.0, into the new version of Ethereum 2.0.
To do this, Ethereum 1.0 will be integrated with Ethereum 2.0 
in the form of a 
Shard
 . 
Thus, Ethereum 1.0 will become a 
subnet of Ethereum 2.0 .
This integration will mark 
the end of 
Proof of Work
 for Ethereum and the generalization of 
Proof of Stake .
It is also in this phase that will introduce 
transfers and all the logic relating to 
smart contracts on Ethereum 2.0, as explained on the official site:
“This upgrade will make other 
shards look like the 
mainnet – they will be able to process transactions and smart contracts, and not just provide more data.”

This last phase is scheduled for 
2021/2022 according to information published by the Ethereum foundation. 
Once again, any delay in the previous phases will undoubtedly cause delays on this one.
Ethereum 2.0 is not for tomorrow!
As we have just seen, we are still far from being able to take full advantage of the promises of Ethereum 2.0.
Ethereum futures
Its 
full deployment should still, at the very least, take 
1 to 2 years , if it is not the victim of delays.
Despite this, all is not lost for Ethereum. 
Indeed, while waiting to benefit from the performance of Ethereum 2.0, Ethereum 1.0 will have to take advantage of the advantages offered by second layer solutions to mitigate its congestion problems.

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