Vitalik Buterin talked about the Ethereum 2.0 update
During an interview with POV Crypto, Vitalik Buterin, co-founder of Ethereum spoke about the future of Ethereum 2.0.
Proof-of-Staking for Ethereum 2.0
During an interview with POV Crypto, Vitalik Buterin, co-founder of Ethereum spoke about the future of Ethereum 2.0. As is known, after the update, Ethereum will work with the consensus mechanism known as Proof-of-Staking in which rewards are awarded for holding ETH coins, unlike Bitcoin which has a consensus mechanism known as Proof -of-Work in which users receive rewards as a result of their work within the network (mining power).
** Konstantin Kladko, CTO of Skale Network, claims that the Ethereum 2.0 roadmap is important to the development of the network but that the ecosystems behind Ethereum are of significant importance and make Ethereum an "unstoppable digger".
Buterin explained the reasons why the team decided to choose Proof-of-Staking as the consensus mechanism for the Ethereum update: "One of the reasons we are doing Proof-of-Stake is because we want to greatly reduce the So, in the ETH 2.0 specifications, I think we have made a calculation that the theoretical maximum emission would be around 2 million a year if literally everyone participates. ”Emission is a very important aspect of cryptocurrency since one of Its objectives are to solve the problem that traditional currencies have with inflation: cryptocurrencies aim to give users the ability to carry out secure, cheap and fast transactions, and that, at the same time, the cryptocurrency serves as a haven of value. that currently 4.7 million ETH are emitted per year and that with the update it is expected that the emission of ETH 2.0 will be between 100,000 and 2 million ETH per year.
In addition to reducing emissions, Buterin pointed out the mechanism by which the total circulating supply is reduced. When a user submits a transaction, the fee for that transaction is divided into two parts: one part goes as a "tip" to the miner and the other part simply burns. In addition, the update aims to solve the problem of fees: "Instead of having volatility in transaction fees, we have volatility in the size of the block," Buterin explained.