Ethereum

[ETH]

What is Ethereum 2.0?

While Ethereum 2.0 is an upgraded version of Ethereum 1.0 that introduces Proof-of-Stake and Sharding, it is not a hardfork and has to be considered a separate, independent blockchain. Ethereum 2.0 is deployed in a three phase roll-out in the course of the next years. Ethereum 1.0 will eventually become a Ethreum 2.0 shard. For further information, please refer to our 'Intro to Ethereum 2.0' post.

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Getting started with Ethereum 2.0

Learn the basics of the Ethereum (PoS) blockchain and quickly ramp up your knowledge about the network with these selected pieces of content.

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Ethereum 2.0 guides & tutorials

These guides and tutorials help you stake your ETH token on the Ethereum (PoS) blockchain ('Beacon Chain') using several tools.

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Ethereum 2.0 tools & resources

With these tools & resources, you can manage your ETH token and analyze the Ethereum network.

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Ethereum 2.0 ecosystem content

Browse through a selection of Ethereum 2.0-related content such as videos, blogs, podcast episodes and more!

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Got Feedback? Ideas? Content?
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Come help us in making this subpage a great resource for the Ethereum community! Please share blog posts, videos, podcasts as well as tools and tutorials that helped you to get started with Ethereum 2.0 or that you enjoy reading and using.

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Ethereum events

Join a Ethereum event to connect with other stakeholders and to experience the Ethereum community first hand!

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Ethereum 2.0 FAQs

What is the difference between Ethereum 2.0 and the current Ethereum?

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The current Ethereum (aka. Eth1) and Eth2 will run in parallel for a while, Eth1 will eventually become a part of Eth2 (Phase 1.5). Ethereum 2.0 is an upgraded version of Eth1. The main objective behind this upgrade is to enable Ethereum to scale while maintaining a high level of security, and decentralization. This is mainly achieve through two changes to the structure and design choices in Eth2 compared to Eth1. The two biggest ones being “Proof-of-Stake” as well as “Sharding”.

Proof-of-Stake (PoS): In a PoS system, validators take the role of miners (known from Eth1). Validators provide computing power, storage, and bandwidth to validate transactions, and they propose new blocks. For doing so, they receive periodic payouts denominated in ETH. Validators need to lock 32 ETH into a deposit contract, which functions as a sort of security deposit, that gets (fully or partially) forfeit in case of malpractice. This way of incentivizing honest behavior requires far less energy than the current Proof-of-Work mechanism, in which miners are incentivized through sunk costs in the form of hardware and electricity.

Sharding: Sharding is the process of splitting up a blockchain into multiple blockchains called shards. It is a way of partitioning the computational and storage workload across different nodes. Hence, the transactional load of the entire network does not have to be processed by each validator, but instead, they can focus on maintaining information related to “their” shard. In order to avoid collusion, the validators are shuffled between shards on a regular basis. In Ethereum 2.0, the shards communicate and coordinate through the Beacon Chain. They are linked through crosslinks, a reference in a beacon block to a shard block. The plan is to have 64 shards that compose the Eth2 network

What is the incentive to stake my ETH?

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Once you have staked ETH, you are contributing to the network's security. In return, you will receive rewards in the form of newly minted ETH. Conversely, if you do not participate in staking, your assets will get diluted over time.


What are the risks associated with staking my ETH?

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In Eth2, validators are subject to punishment in case of malpractice. This is referred to as "slashing" and can occur in the wake of three events:

  • 'double sign': proposing two different blocks in the same epoch
  • 'surround vote': voting for multiple versions of the chain at the same time
  • 'non-malicious slashing': due to a bug or mistake in the validator setup; low severity if small number of validators is affected (amount slashed increased the more validators are affected)

If you are using the services of a third party provider or a staking pool, you can be subject to a slash. Therefore, we advice you to carefully choose your validator. Please note, that the costs for running a secure and professional validator need to be covered by the commission rate. Hence, it is worthwhile to accept a certain amount of commission in order to secure your profits and minimize the risk of punishment. In addition, we have our own capital on the line in order to fully align our own interest with that of our customers.

Are my rewards automatically sent to me or my validator?

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Rewards automatically accrue on your account. However, they remain locked and illiquid until token transfers and withdrawals are enabled. This will be the case in Phase 1.5 of Eth2s' rollout. No specific dates have been announced for the start of Phase 1.5. Unfortunately, compounding your rewards is currently not possible on a protocol level.