The ETH 2.0 mainnet will be launched in the third quarter of this year, and many people are paying attention.

One of the main changes of the new main network is the change of the consensus mechanism, which greatly reduces the participation threshold for investors and greatly reduces the waste of resources.

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Looking back at the development history of ETH, ETH was divided into ETC and ETH due to the hard fork caused by The DAO incident.

In order to avoid the risk of bifurcation caused by the PoW (Proof-of-Work) consensus mechanism, reduce the gas fee (Gas Fee) consumed by mining and other activities, and improve the efficiency of ETH main network transactions, the ETH community plans to convert the original The PoW mechanism is changed to CPoS (Casper Proof-of-Stake), which is the ETH 2.0 model.

ETH 2.0——From PoW to PoS

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(1) ETH 1.0 under PoW

The essence of the proof-of-work mechanism (Proof-of-Work, PoW) is that miners use their own computing power resources to mine, and mining pools mine by organizing the computing power of miners, whether it is an individual miner or a mining pool, The more computing power one has, the higher the probability of successful mining.

In layman's terms, under the PoW consensus mechanism, computing power is king! Whoever controls more computing power resources can earn more income in the future!

Under the PoW consensus mechanism, ETH 1.0 not only consumes a lot of power resources and fuel costs, but also is prone to forks.

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ASIC chips for ETH mining

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(2) ETH 2.0 mode under CPoS

In order to overcome the many limitations brought by PoW in ETH 1.0, a wider range of investors can participate in the process of ETH mining.

In the ETH 2.0 mode under the CPoS consensus mechanism, ETH will no longer need the mining process. The verification and confirmation of new transaction blocks will be done by block validators, who will be selected according to their miner shareholding ratio.

A block validator is like a validator who proves that "you do have a certain shareholding ratio at a certain moment to determine the probability of packaging".

In layman's terms, the shareholding ratio is king! The higher the proportion of stakes that are pledged, the greater the probability of successful mining. There is no doubt that ETH 2.0 has greatly lowered the entry barriers for mining and effectively reduced the waste of resources.

Editor | Mr. Hua

Written by | Chen Yixin

Editor | Mr. Hua