Stop everything! The highly anticipated update of the Ethereum cryptocurrency platform (quotation ETH) is no longer known as Ethereum 2.0!
Okay, now you can breathe a sigh of relief. Technology updates are still ongoing, and Ethereum will soon lose the stigma of being slow and expensive. It's just that the Ethereum 2.0 rebranding effort is over.
What's in a name?
The developers of the Ethereum protocol began ditching the Ethereum 2.0 name and abbreviations such as Eth1 or Eth2 in August 2021. The legacy code branch was officially renamed "execution", while the new Eth2 protocol is now known as "consensus" . These names more accurately reflect what each collection of code actually does, as the Ethereum 2.0 update is set to revamp the transaction consent mechanism without affecting the way Ethereum executes its smart contracts and decentralized applications (dApps ).
So now the Ethereum community has rolled out the same terminology updates to the ethereum.org web portal, where coders and enthusiasts gather to discuss the future direction of the project. This is as close to an official name change as you can get in a global project where political decisions are made by popular vote among a wide range of stakeholders.
Thus the old Eth1 code is now officially known as the Ethereum execution level. Eth2 is now the consensus level of the same system. The two tiers are expected to merge in 2022, streamlining the entire system back to being simply Ethereum - but with a plethora of major updates. There will be no new token for the system formerly known as Ethereum 2.0, and Ether holders won't have to do anything different. The updates should be transparent to most Ether owners, unless you want to take part in the new piling process.
No more graphics cards needed
First, the project added a new blockchain ledger known as the Beacon Chain. This is the backbone of the new consensus system, where new development occurs and new features appear first. At launch, Beacon gave the Ethereum community access to a proof-of-stake consensus system in addition to the old proof-of-work platform. Ethereum holders can now aim their Aether tokens to participate in the transaction consensus process - and earn dividend-like rewards in return.
The upcoming merger will shut down Ethereum's inefficient and hungry proof-of-work system, replacing it entirely with the new Beacon chain. The purchase of Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD) graphics cards for the purpose of token mining will no longer be useful, sending mining enthusiasts to other proof-of-work cryptocurrencies and reducing the demand for high-end graphics cards. AMD and Nvidia appear to underestimate the amount of business they are earning from Ethereum's mining operations. The proof will be clear when the mining option goes away and leaves those cards on store shelves where gamers and multimedia professionals can find them.
All of these updates are still in the cards for Ethereum. There is simply no need to think of it as Ethereum 2.0 anymore. We have two twin systems under the marks of execution and consent for now, and the whole shack will soon be known as Ethereum again.
