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What is the difference between ETH and ETH2?

Soumya Ranjan MohantyMay 08, 2022 · 3 years ago1 answers

Can you explain the key differences between ETH and ETH2 in the world of cryptocurrencies? How do they differ in terms of technology, scalability, and potential impact on the market?

1 answers

  • May 08, 2022 · 3 years ago
    ETH and ETH2 represent different stages in the evolution of the Ethereum blockchain. ETH is the current version, while ETH2 is the upcoming upgrade. The main difference between the two lies in their consensus mechanisms. ETH uses proof-of-work, which requires miners to compete to solve mathematical puzzles and validate transactions. This process can be slow and energy-consuming. On the other hand, ETH2 will implement proof-of-stake, where validators are chosen to create new blocks based on the amount of ETH they hold. This change will make the network more energy-efficient and scalable. Additionally, ETH2 will introduce shard chains, which will allow for parallel processing of transactions and further improve scalability. Overall, ETH2 aims to address the limitations of ETH and create a more sustainable and scalable blockchain ecosystem.