Ethereum 2.0 is the most anticipated upgrade in cryptocurrency at present. Given the demand for these services, the upgrade that will provide better scaling and lower costs to the network’s prices is essential. The Ethereum developers have worked tirelessly for the past two years to help usher in this new age.
The name ETH 2.0 does not seem to be able to reflect the many upgrades that are being made on the network. Ethereum Foundation has announced in a recent announcement that the name ETH 2.0 will be retired to make room for something more descriptive of the ongoing work.
ETH 2.0 Now Consensus Layer
In a blog post on its official website, the Ethereum Foundation announced its decision to change the name of the upcoming upgrade from ETH 2.0 to the “Consensus layer”. It explains in the blog that it was needed to use terminology that clearly describes the changes being made to Ethereum’s network.
ETH 2.0 was successful when it first launched. The goal was to transfer users from the current proof of work chain (also known as ETH 1.0) to the new proof-of-stake mechanism. This goal has been drastically altered since then.
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Developers had realized that the entire upgrade would require several years. The upgrade was also evolving at different points in order to focus on long-term changes rather than just the proof of stake process.
Increase in Ethereum to $2,000. Source: TradingView.com.| Source: ETHUSD on TradingView.com
It is easier to understand what’s happening on the network with this new terminology. The new terminology makes it easier for users to differentiate between them. This would greatly reduce scams that take advantage of the confusion generated by the terminology by asking them to swap their ETH for ‘ETH2’. It would also clear up the confusion that arises with staking, where stakers might believe they might be getting ‘ETH2’ tokens and not ETH tokens.
What is the Effect of Ethereum’s Price on It?
The market has not seen any change in value due to the announcement about the new terminology. Ethereum, which lost 40% in the crash and had trended up in the past day, has seen its value rebound. However, the value change is insignificant since ETH remains far from reaching $3,000 in the future. Users speculate that there is a bear market.
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As for ETH 2.0, now known as the “Consensus layer”, it is still unknown if the scheduled merge will actually take place this year. Devs have encountered new challenges and delays caused delay to the project. However, for the moment, upgrades are on schedule.
The announcement states that the execution layer will replace the ethereum-base layer (also known as ETH1) ETH 2.0 will become the consensus layer. The Ethereum blockchain is made up of both these layers.
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