Ethereum 2.0 is the next generation of Ethereum, an open-source, public blockchain platform based on distributed ledger technology. It was created to improve scalability and efficiency for decentralized applications (DApps) built on Ethereum’s network. The upgrade will also introduce several new features and technologies that are designed to increase flexibility and security for users in a variety of ways.
The most important feature offered by Ethereum 2.0 is its use of Proof-of-Stake (PoS), as opposed to the currently used Proof-of-Work (PoW). PoS allows users who hold ETH tokens in their wallets to actively participate in consensus processes, while PoW requires miners with powerful computers to solve complicated mathematical problems known as hashes before they can be rewarded with newly issued ETH tokens or transaction fees from processing transactions on the network. By switching over to PoS, it drastically lowers costs associated with running DApps on top of the blockchain since there’s no need for expensive mining hardware anymore – instead anyone holding enough Ether can become a validator node simply by staking their coins! This means more people have access to becoming part of Ethereum’s core infrastructure without needing large upfront investments & technical knowledge required when using traditional miners/servers etc..
Moreover, sharding will help reduce congestion within blocks; this ensures faster data transmission speed which makes operations much quicker than current versions due Eth 1x speeds being limited because every single node must process each block individually rather than dividing up work amongst smaller nodes like what happens when shards are introduced into play here!. Finally beacon chain contracts allow developers create trustless smart contracts between two parties directly through use cryptography – making them even safer investment vehicles compared normal non-blockchain ones out there today!
