Ethereum has been facing severe scalability issues for the past few years and its network is getting more and more congested with time. THE current ETH network is not able to handle so many Dapps, tokens, and smart contracts and thus users have to pay huge transaction fees to transfer their tokens from one address to another. So, the ETH developers have decided to move to a proof of stake model which will help in solving several issues. They are calling it ETH 2.0, or Eth 2, or Serenity.
Proof of stake is a consensus mechanism that rewards users for holding coins in their wallets and keeping them online. With the rise in number of ASIC miners, proof of work mechanism is facing issues like centralization, costly hardware, and huge electricity costs. POS eliminates all these issues which is why it is being adopted by more and more blockchain projects these days.
What is Sharding?
The word shard means ‘a small part of a whole’. In the case of ETH, it means splitting the Ethereum network into small portions called shards. A shard will have its independent state, meaning a unique set of account balances and smart contracts. This is by far the most advanced feature to be released on ETH and it will make ETH more scalable, decentralized, and secure.
Requirements for ETH staking
Users will have to hold a minimum of 32 ETH in their wallets to enjoy the benefits of passive income from staking rewards. They will also have to run a validator node to participate.
When can I stake ETH?
Serenity is planned to roll out in 3 phases over the next 2 to 3 years. Phase 0 does not have a fixed date yet but it is coming very soon.
Benefits of ETH 2.0
Low transaction fees
Energy-efficient and environment friendly
No need to buy expensive ASICS that become outdated quickly
It will encourage users to hold their ETH
WE are looking to implement ETH 2 in Flits app when it goes live so that users can enjoy the benefits of ETH staking directly from their mobile phones.
And download the app: https://flitsnode.app