Ethereum launches a test network ahead of breakthrough changes. ETH 2.0 is coming soon

The transactions in the new network are to be faster, less energy-consuming and, above all, much cheaper Ethereum. The world's second cryptocurrency is getting ready to move from Proof of Work to Proof of Stake. Contrary to appearances, the new consensus algorithm changes a lot. 

About the ETH 2.0 will eventually appear, has long been known. The changes were forced by the market situation. And although the deadline is slightly delayed, it is already known that the works are not only in progress, but are also getting closer to completion. It has just started Ethereum 2.0 Kintsug test network. Importantly, it is a public network that anyone can use and conduct test transactions before officially changing the consensus algorithm with Proof of Work na Proof of Stake.

What will change after Ethereum's transition to Proof of Stake?

The change is dictated by the fact that with development blockchain technology and the growing interest in the Ethereum network, its load was also growing rapidly. And this made confirming transactions taking more and more time. Consequently, congestion and transaction fees grew. 

Today, the average transaction fee in the ETH network is as high as $ 23,40. This is much more than in Bitcoin, where we pay less than $ 2. Other cryptocurrencies, however, look much better - v DOGE is $ 0,30 and aw Litecoin (LTC) as low as $ 0,20.

That is why the development team has been working on the preparation of Ethereum 2.0 for months, a de facto new platform based on the Proof of Stake consensus algorithm. Although the new platform is not ready yet, its test network has already been created and everyone can check how it will work in practice. 

Her start announced Beiko Team, coordinator of the team working on the development of Ethereum. On the Ethereum Foundation blog, he informed that the Kintsugi test network was just starting. It is supposed to make not only decentralized applications but also NFT collectionsas well as blockchain-based games and other solutions will be able to function in it without any obstacles, at the same time, and the accompanying transaction fees will be much more competitive on the market.

Proof of Work and Proof of Stake - practical differences

Proof of Work is a consensus algorithm used, among others, in In Bitcoinie. It is the miners who are responsible for approving each transaction. In the Proof of Stake system, network activity is secured by stacked (or blocked) coins, which virtually anyone can do. The restrictions on the amount of locked coins are really small and you can start earning money from staking from small amounts.

"While client and UX development are still being fine-tuned, we already encourage our entire community to start using Kintsugi to explore the new world of Ethereum." - emphasizes Tim Beiko, coordinator of the team working on the development of Ethereum.

In December last year, the so-called phase zero, which focused on the launch of Beacon Chain. It is a chain that will connect the current network with the new one and will ensure a smooth transition to Ethereum 2.0. There are also four test networks on which all variants of ETH 2.0 activity are tested after the changes. Now - thanks Kintsugi - everyone can also test the upcoming changes in terms of their expectations and transactions. You don't have to be a developer or IT specialist - the network is available to everyone, including "retail" Ethereum users, as well as those who are just going to start using it.