Ethereum 2.0, often referred to as “Eth2,” is the next major phase in the evolution of Ethereum, aiming to solve some of the key issues related to scalability and security. The main change in Ethereum 2.0 is the shift from the original proof-of-work (PoW) consensus mechanism to proof-of-stake (PoS). This transition is designed to significantly reduce energy consumption and improve the scalability of the network, enabling it to handle many more transactions per second (TPS).

With PoS, the network is secured by validators who stake ETH to participate in the consensus process, rather than miners solving complex mathematical problems. This shift reduces the need for energy-intensive mining, making Ethereum more sustainable. Additionally, Ethereum 2.0 introduces sharding, a process that divides the network into smaller, more manageable pieces, or “shards,” each capable of processing its own transactions and smart contracts. Sharding increases the overall throughput of the network, making Ethereum more scalable.

Ethereum 2.0’s improvements are expected to enhance the security of the network by making it more resistant to attacks, such as 51% attacks. By allowing more users to participate in securing the network through staking, Ethereum becomes more decentralized and less vulnerable to manipulation. As these upgrades continue to roll out, the value of ETH is likely to increase due to greater network capacity and security, which could impact the eth price positively. For real-time updates on Ethereum’s value, check the eth price on Toobit.