Coindesk Logo

Everything You Need to Know About Ethereum 2.0

Everything You Need to Know About Ethereum 2.0

Everything You Need to Know About Ethereum 2.0

A new 22-page report from CoinDesk Research explains the technology behind Ethereum's upcoming overhaul and the potential market impact of Eth 2.0.

A new 22-page report from CoinDesk Research explains the technology behind Ethereum's upcoming overhaul and the potential market impact of Eth 2.0.

A new 22-page report from CoinDesk Research explains the technology behind Ethereum's upcoming overhaul and the potential market impact of Eth 2.0.

AccessTimeIconJul 24, 2020, 5:05 PM
Updated Aug 19, 2021, 3:20 AM

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

Ethereum 2.0 is coming. 

The years-long upgrade – intended to radically transform the world’s largest smart-contract platform – is inching closer to deployment. The Ethereum Foundation recently announced “Medalla,” a final testnet before the mainnet launch of the Eth 2.0 beacon chain.

As of July 10, some developers, including Ethereum founder Vitalik Buterin, estimate the oft-delayed Eth 2.0 will launch by the end of this year. 

To mark the fifth anniversary of the network’s launch, CoinDesk is producing Ethereum at Five – a cross-platform series featuring special coverage, a limited-run newsletter and live-streamed discussions on Twitter. New issues and sessions launch daily from July 27-31. The pop-up experience precedes another event in September focused on Eth 2.0.

When phase zero of Eth 2.0 does ship, little about Ethereum will change in the near term for users and dapp developers. This is because unlike all other system-wide upgrades in Ethereum history, the Eth 2.0 overhaul will primarily be happening on a different blockchain. 

ETH price, protocol upgrades and Ethereum phases of development over time

The first phase of development for Eth 2.0 is centered around the creation of a separate proof-of-stake blockchain network called the beacon chain. On this new network, ETH holders with a minimum of 32 ETH can earn rewards in the form of annualized interest on their wealth. To earn these rewards, ETH holders must have the appropriate hardware and software connecting to the beacon chain and a strong understanding of how the technology works. 

In a new 22-page report from CoinDesk Research, the technology behind Eth 2.0 is explained as well as the phases of development it will undergo in the years after its launch.

Ethereum as we know it today will eventually be folded into the Eth 2.0 upgrade in its entirety. The report features commentary from Ethereum developers about what benefits – but also risks – this may bring. 

The report also discusses the potential market impact of Eth 2.0, including the ramifications of the new system’s economic design on coin supply, velocity and value.

ETH total supply growth at Phase 0 launch

Why it matters

The culmination of over five years of research and development, Ethereum 2.0 is a highly ambitious upgrade.

Never before has the cryptocurrency industry seen a blockchain of the same size and value as Ethereum attempt to transition all users, as well as assets, to an entirely new decentralized network while keeping all operations on the old network active and running. 

It will likely take many years for the Ethereum 2.0 upgrade – in all its complexity – to be complete. However, developer commentary featured in this report suggests the biggest hurdle (and perhaps most important milestone) in the Ethereum 2.0 roadmap is its initial launch.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.