Ethereum 2.0, the next version of the\u00a0Ethereum blockchain, which has long been the focus of the crypto community, is expected to be launched in two months or less. It is also the reason behind the increase of Ethereum (ETH) coin because people are showing interest in buying Ethereum and holding it. So what is Ethereum 2.0? Why Ethereum 2.0 is important? As the name suggests, Ethereum 2.0 is the major upgrade to the\u00a0blockchain network\u00a0of Ethereum, the second-largest cryptocurrency by market cap after\u00a0Bitcoin. Before dive deeper into Ethereum 2.0, let\u2019s briefly recall what the original Ethereum was. Ethereum is a\u00a0decentralized\u00a0software platform launched in 2013 by Russian computer programmer\u00a0Vitalik Buterin\u00a0and British programmer\u00a0Gavin Wood. Besides its open-source and Blockchain-based structure, Ethereum supports a computer protocol called \u201csmart contract.\u201d From its very first launch, the Ethereum platform had a development plan. Its developers wanted Ethereum to be a long-term project and to provide security, functionality, and decentralization to its network. Even as the dates and details of its predicted developments changed, Ethereum consistently stuck to its upgrade plan. The upgrade stages of the development plan are: \u201cFrontier\u201d \u201cHomestead\u201d (March 2016)\u00a0 \u201cMetropolis Byzantium\u201d (October 2017)\u00a0 \u201cMetropolis Constantinople\u201d (February 2019) \u201cIstanbul\u201d (December 2019) \u201cSerenity\u201d Also known as\u00a0Eth2, the\u00a0\u201cSerenity\u201d\u00a0update aims to improve both the performance and adoption of the Ethereum network. According to\u00a0Vitalik Buterin\u00a0and the developers of the platform, December 1, 2020, will most likely be the launch date for Ethereum 2.0, after years of anticipation and delays. Why Ethereum 2.0 Is Important? Two consensus algorithms are used in blockchains where crypto money transactions are carried out:\u00a0proof-of-work\u00a0and\u00a0proof-of-stake. The primary innovation we will see with Ethereum 2.0 will be the transition of Ethereum\u2019s existing algorithm from\u00a0PoW\u00a0to\u00a0PoS. Rewarding miners or stakes to validate transactions and create new blocks is the way a blockchain generates new coins. These rewards also encourage network users to secure the platform and avoid potential attacks. The current Ethereum network is protected by Proof of Work. To be able to validate a new transaction, miners\u00a0spend both their time and heavy computing power. In this process, they compete with each other and try to gain\u00a0Ether\u00a0from each completed block, which is the native currency of Ethereum. The more computing power and time a miner puts in, the better their chance of completing the block. However, there are three main problems posed by the\u00a0Proof of Work\u00a0consensus mechanism that Ethereum uses. Three Major Problems of the Proof of Work Mechanism Accessibility Ethereum\u2019s current\u00a0Proof of Work\u00a0mechanism requires high-cost computing power, as we mentioned earlier. Therefore, only individuals and institutions with very high financial status can afford it. This makes the network inaccessible to everyone.\u00a0Proof of Stake, on the other hand, will solve this problem by giving everyone the chance to contribute to the security of the platform. There is one entry barrier that applies to Proof of Stake. To qualify as validators, participants must deposit a fixed amount of cryptocurrency one week before the scheduled \u201cgenesis event.\u201d This minimum staking requirement is\u00a032 ETH\u00a0for Ethereum 2.0. Need for Scalability By adding sharding to the network, Ethereum 2.0 will significantly increase the efficiency of resource utilization and create multiple chains of parts. The new system will do this by dividing data validation tasks among clusters of nodes, each one solely responsible for validating the data it receives. Changing the consensus algorithm to Proof of Stake and leaving Proof of Work and the introduction of the so-called \u201csharding\u201d method will make a significant difference to scalability issues in the Ethereum network, especially for improvement. Centralization The expensive mining process of the PoW mechanism can cause a\u00a051% attack\u00a0by a group of miners who control more than 50% of the mining\u00a0hash\u00a0rate of the network. This is against centralization, which is the most prominent feature of blockchain technology. The transition to the PoS mechanism aims to eliminate this problem as it will randomly select stakes that make verification. As we know that ETH is the 2nd most popular crypto coin in the market and there are many cryptocurrency exchanges opened that provide you the easy of access to buy Ethereum with cash, online or locally. Coinsfera OTC exchange is one of the leading Bitcoin Shop in Dubai where you can easily buy any cryptocurrency with cash. The Roadmap to Serenity The transition of the Ethereum network to the Ethereum 2.0 will not happen overnight. Because the users of the system are quite a lot. The planned transition to Ethereum 2.0 takes place in three stages, as outlined below: Serenity Phase 0\u00a0\u2013\u00a0\u201cBeacon chain\u201d\u00a0\u2013\u00a0 It\u2019s kind of a transition phase. PoS works in parallel with the existing system. Serenity Phrase 1\u00a0\u2013\u00a0\u201cShard chains\u201d\u00a0\u2013 Introduction and testing of the sharding. This phase includes improvements in block processing capacity in the Ethereum network. Serenity Phrase 2\u00a0\u2013\u00a0\u201cState execution\u201d\u00a0\u2013 Launch of eWASM as the successor of EVM and complete shutdown of the PoW mechanism. Ethereum 2.0\u00a0is moving to Stage 0 on December 1, 2020. The transition to Stage 2 may take 2022 or even 2023.\u00a0Vitalik Buterin mentions a rate of 100,000 TPS for the speed reached at the end of Phase 2. Many analysts and investors assume these events will have an impact on Ethereum\u2019s adoption and will have a positive influence on Ether\u2019s price. Disclaimer: All information provided in the content is for informational purposes only and should not perceive as investment, financial, or trading advice. Any investment decision you make should be a personal choice based on financial knowledge, experience, and market research.