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below cryptocurrency decentralized finance bitcoin and nfts and all sorts of things about online
finance have been a big part of our lives one of the most important installments on online
finance is ethereum whether you already know what ethereum is or not i will explain it for you
in this video but most importantly i will talk about ethereum 2.0 it's a new form for ethereum
and it will change the ethereum game forever with its new protocols and methods ethereum is a
decentralized blockchain and if you do not know what decentralized is you can check our video
about defy the link is in the description below ethereum is a technology that lets you send
cryptocurrency to anyone for a small fee it also powers applications that everyone can
use and no one can take down sizing ethereum's website in 2013 ethereum established itself as
an infrastructure in which people can create their own apps called depths using the solidity
programming language ethereum aim to decentralize the internet which is centralized by big companies
such as google and facebook so ethereum opened the gates for further evolution of the crypto
world people have started so many projects that took the internet world by storm such as
nft to achieve that ethereum first launched its cryptocurrency called ether which is placed
in the heart of all transactions in the network then it established its smart contract system a
smart contract is a digital law on the ethereum network that does not allow any changes in the
system these contracts know if you have sent the money and if it reached the other side and allows
only this to happen this smart contract system makes ethereum secure ethereum also works on proof
of work method that means by mining you use the processing power of your computer like many others
in the network and your aim is to solve a problem that is really hard to solve but easy to prove so
when you solve this problem others who are mining approve that your solution is in fact true and you
can be rewarded these solutions are then blocked encrypted and chained together which is why it's
called the blockchain system so the system is always kept under control by users themselves
making it really secure and nearly impossible to hack in 2021 ethereum announced that they will
upgrade their system with some radical changes and this will be called ethereum 2.0 first ethereum
moves from proof of work to proof of stake but what does it mean right now miners are
rewarded for their process power so they use big amounts of energy in order to solve and validate
problems however in proof of stake you will be rewarded if you commit your money to the system
validators they call them should take 32 ethers and by staking they create new blocks so that
they can be rewarded the second big change is the sharding system which will enable ethereum to make
so much more in less time basically the blocks will split into individual blocks that can be
processed easily and by multiplying this number of blocks that are easy to verify ethereum will use
less power and that will enable users to make more transactions for less money these changes will not
arrive in a flash instead there will be phases in which these changes will be executed so let's
have a look at this phase structure phase zero which launched in december 2020 implemented the
beacon chain in the register of validators and deployed the proof of work mechanism phase one has
an anticipated lounge in 2021 the first iteration of 64 shards will be launched phase 1.5 the
merges when the current ethereum 1.0 chain becomes an ethereum 2 chart at this point
validators can both enter and exit the scheme phase 2 shard chains is scheduled for the end of
2021 or 2022 and it will be an upgrade where the 64 shards will be fully functional with smart
contract compatibility and other added features okay but what will be achieved by all of that
these changes are user-friendly because users will be paying less for their transactions also
ethereum 2.0 will be much faster and combined with lower costs it will create new opportunities
for different types of tokens such as nft moreover people will not have to have big and bulky
missions for mining this will bring more people in the network so in this episode we covered
ethereum and its next form ethereum 2.0 which will be a big step forward for the crypto world
thank you for watching fintech until next time you
