Ethereum 2.0 is coming, the end of its classic mining is approaching

Ethereum Improvement Proposal # 1559 envisages the introduction of a static model, which simply means lower earnings for miners. Currently, the Etherea blockchain is compiled, as in many other cases (including Bitcoin), in such a way that miners logically select transactions with the highest set fees and form blocks of a fixed size from them. For the transaction itself, this means that it will be processed quickly and, for miners, a high reward, but the static model also means static transaction fees, while the size of the blocks from which the resulting blockchain is made will change.


Critics expect the size of the blocks to increase, which they see as a threat to transaction security. On the other hand, the overall speed of blockchain processing and creation will increase, which is what the Ethereum 2.0 model is all about, and if it is no longer possible to set higher transaction fees, it will mean much lower profits for miners themselves, or rather they will lose the reward straight away.

As a result, Ethereum 2.0 no longer uses the same mechanism for creating a blockchain, or PoW (Proof of Work), which uses powerful hardware for mining or hashing. A PoS (Proof of Stake) will take place, in which enough members of the “validators” (they must own 32 ETH, or operate within the pool) must approve the transaction, which will no longer require powerful hardware that consumes a quantum of energy. Thanks to the new system, it will be possible to process up to around ten thousand transactions per second, compared to several dozen in the existing system, mainly due to larger blocks.

Miners are, of course, resisting these changes, but large mining pools such as Ethermine and Spar Pool are controlled by the founding Ethereum Foundation, which is preparing the changes, so the community can protest out loud, but the main word does not belong to it. At the same time, many miners operate within pools, which basically prepare for their end in the form in which they operate today.

The question is when Ethereum 2.0 will become a reality. Technically, everything has to be ready, so the gradual transition can be started at any time, or it was already last December, but so far only phase 0 has occurred.

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Source: Svět hardware by www.svethardware.cz.

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