What’s Ethereum 2.0?
An Eth2 explainer for wallet users
Eth2 refers to a set of interconnected upgrades that will make Ethereum more scalable, more secure, and more sustainable.
With this upgrade, Ethereum will move from PoW to PoS, and introduce sharding. The Ethereum network will significantly reduce energy requirements, allow more transactions to be processed simultaneously, and improve network security.
Eth2 will be phased in, and the Beacon Chain, the first major upgrade to Eth2, went live on December 1, 2020. You can read the official Ethereum 2.0 introduction to learn more about Eth2.
- ETH2 for Dummies
- Beyond the Beacon Chain: what’s next for Eth2?
- What to Expect When ETH’s Expecting
- The State of Eth2, Jan 2021
- [AMA] We are the EF’s Eth 2.0 Research Team
Launch date: December 1, 2020
We are currently in the Beacon Chain (formerly Phase 0). As the basis of the PoS consensus, the Beacon Chain provides a consensus foundation for the entire Ethereum network and paves the way for subsequent sharding upgrades.
Users can stake ETH now. However, it should be noted that staking ETH in the deposit contract of the beacon chain is one-way. Once deposited, the staked ETH and accumulated rewards can only be retrieved after Eth2 merges with Eth1.
- The Beacon Chain Ethereum 2.0 explainer you need to read first
- ETH2.0 Phase 0: basics for new contributors
- The pros and cons of different Eth2 staking solutions
When ready, Ethereum mainnet will “merge” with the Beacon Chain, becoming its own shard which uses proof-of-stake instead of proof-of-work.
This will signal the end of proof-of-work for Ethereum and start the era of a more sustainable, eco-friendly Ethereum.
Shard chains spread the network’s load across 64 new chains. Sharding will reduce network congestion and increase transactions per second by creating new chains, known as “shards”.
imToken & Ethereum 2.0
The following are the 4 common staking solutions currently available to participate in Eth2 staking:
- Self-run node: Users take full self-control for running the client of Eth1 and Eth2 to maintain their own node and receive the staking rewards.
- Full custody: A trusted custodian controls your funds, but it allows users to stake small amounts (less than 32 ETH) on it.
- Custodial staking pool: It offers custodial staking pool and token to reward users who are staking. Solution of Custodial staking pool provides the liquidity for ETH staking pool, which is based on the solution of full custody.
- Staking-as-a-Service custody: Users keep their asset of ETH and control of staking reward to jointly manage and verify nodes with service providers through 2 private keys.
Having at least 32 ETH
If you have at least 32 ETH and excellent technical skills, a self-run node will fit you.
However, running your own node can be difficult and you don’t always need to run your own instance. So if you don’t want to be bogged down in endless technical manuals, you can use the imToken Eth2 staking service.
imToken 2.9.1 now has full support for Eth2 key generation and staking-as-a-service custody with InfStones, which guarantees the ownership and control of your assets through transparent node information. Meanwhile, you can rest assured about node operation, node validation and maintenance services.
Alternatives in imToken Eth2 category
Having less than 32 ETH
It is recommended to choose a staking pool if you have less than 32 ETH, or aren’t willing to stake that much. Factors such as the service provider’s brand, token mechanism and ETH discount should all be taken into account when choosing.
Staking Rewards Calculator
What are the benefits and risks of staking on the Beacon Chain?
Benefits: You can earn at least 4.9% APR.
Risks: The staked ETH may be slashed due to the misbehavior of the validator.
Meanwhile, the deposited 32 ETH and accumulated rewards will not be transferrable until the Ethereum mainnet is merged with the Beacon Chain, which means they will potentially be locked and non-redeemable for 1 year or longer.
Some staking pools may provide a solution for illiquidity, then the safety of the assets will depend on the trustworthiness of the staking pool.
Is Eth2 a separate blockchain?
Think of Eth2 as a set of upgrades being added to improve the Ethereum we use today. These upgrades include the creation of a new chain called the beacon chain and up to 64 chains known as shards.
In a nutshell, Eth2 is the next generation of Ethereum, which aims to improve the scalability, security and programmability of Ethereum while maintaining decentralization.
How does the Ethereum mainnet relate to Eth2?
The current Ethereum mainnet, Eth1, will merge with Eth2 and move from PoW to PoS.
How do I prepare for Eth2?
You certainly don’t need to do anything. Your ETH will not need changing or upgrading. There’s almost certain to be scams telling you otherwise, so be careful.
If you have any questions, you can contact us by sending an email to firstname.lastname@example.org.