Ethereum 2.0 has been a highly anticipated development in the crypto industry. A recent Cointelegraph research report asks if Ethereum is still on track to defend its crown as the prime network backing the decentralized finance world.
The report cuts through popular misconceptions investors may hold and offers a comparative analysis of Ethereum and its competitors. Meanwhile, the Ethereum foundation rebranded the Eth2 project at the start of this year. Is it trying to manage expectations or educate?
New talk of consensus and execution layers
In a blog post in January, the Ethereum foundation stated that developers had been moving away from the Eth1-Eth2 terminology since late 2021. Instead, Eth1 will now be called the “execution layer” and Eth2 the “consensus layer.” This is not a minor twist toward more technical language. It is an attempt at expectation management due to common misconceptions.
For people only superficially familiar with Ethereum, the name Eth2 might suggest there will be a single large update that magically fixes the problems and notoriously high gas fees by switching from an energy-intensive proof-of-work (PoW) consensus mechanism to proof-of-stake (PoS). However, this is a dangerous oversimplification.
The free scaling report published by Cointelegraph Research provides a sound overview of Eth2. It gives detailed information on the planned technical updates and what they mean for Ethereum’s developers, competitors, and investors. The report is free to access on the Cointelegraph Report Terminal.