Project Background

With the development of Ethereum over the years, it currently has the most robust and strong ecosystem in the crypto world. According to the on-chain data, the total value locked (TVL) in Ethereum was over a trillion USDT at one point, but with the expansion of the ecosystem, Ethereum has to face the problem of scaling. The upcoming upgrade of ETH2.0, also known as serenity, which is the first upgrade to the existing Ethereum classic blockchain, aims to improve the speed, efficiency and scalability of the Ethereum network, while improving security and making the network more sustainable.

Proof-of-Stake (hereinafter referred to as POS) is the consensus mechanism of ETH2.0, and the nodes are called validators, which verify ongoing transactions. In Proof of Stake, transactions are verified by validators rather than miners. POS is more energy efficient than PoW (Proof of Work) because securing the blockchain with POS uses less computing power to create blocks.

In the Ethereum consensus layer, the most critical point of the ETH2.0 upgrade is that Ethereum is moving off of proof-of-work (PoW) to proof-of-stake (POS) because it is more secure, less energy-intensive, and better for implementing new scaling solutions. This means that the entire economic chain formed by the POW will be broken, resulting in an ecosystem dominated by POS economies. And the economic chain of mining pools, mining machines and mining machine chips will turn to the stake economic chain of ETH holders.

With the upgrade of Ethereum 2.0, a new ecosystem is about to be born.