Currency Market 3 days ago By Bessem Chabouh 0Comments 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 2015Thus, 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 chainPhase 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: 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 chainsOnce 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 DockerOnce 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.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.