Welcome to our Macro Report on Ethereum 2.0 (ETH 2.0), a multi-year system upgrade to the Ethereum network, the first phase of which is expected to launch at the end of 2020, bringing with it a new consensus algorithm.

Key Takeaways

ETH 2.0 will implement two main features, Proof-of-Stake and Sharding, to improve the security and scalability of the network;
Proof-of-Stake is a much more efficient and arguably fairer method to distribute transaction validation responsibilities and rewards versus Proof-of-Work, which disproportionately rewards large miners and consumes copious amount of energy on wasteful calculations to secure the network;
Sharding, although complex, is one of the most promising methods to add scalability to a blockchain network and in tandem with layer 2 scaling solutions, which can increase scalability by a factor of hundreds, if not thousands;
ETH 2.0 will be rolled out in three phases. Phase 0, to be released in December 2020, will only implement the Beacon Chain. Phase 1 will include sharding. It is not until Phase 2 in 2022 where dApp functionality will be enabled and Ethereum’s dApps can be migrated over to ETH 2.0 shard chains;
Validator returns can range from 2% to 20% depending on the number of validators participating in the network, but returns will likely be on the higher end at launch;
Becoming a validator can be technically challenging, although third party service providers will provide staking services on day one;
Being a validator to earn rewards can be attractive, but there are risks to consider – primarily, ETH staked will be locked up for at least one year, until the launch of Phase 1 in 2021.

Read the full PDF version of the Ethereum 2.0 here.

10 Aug 2021|RESEARCH

Macro Report on Ethereum 2.0 2020

Wall Street On-Chain Part 1 – Will Bitcoin be Another Asset?

Ready to start your crypto journey?

Get your step-by-step guide to setting upan account with Crypto.com

By clicking the Submit button you acknowledge having read the Privacy Notice of Crypto.com where we explain how we use and protect your personal data.

Download App

Key Takeaways

Macro Report on Ethereum 2.0 2020

Share with Friends

Related Articles

The Rise of Crypto Treasury

Wall Street On-Chain Part 2 – RWA Tokenisation

Wall Street On-Chain Part 1 – Will Bitcoin be Another Asset?

Ready to start your crypto journey?