Developers are finally implementing the initial phase of the long-awaited Ethereum 2.0 on December 1st. The initial phase consists of launching the bridge from the Ethereum 1.0 Proof-of-Work consensus system to a Proof-of-Stake consensus system and that allows users to deposit a minimum of 32 ETH and earn 8-15% in annual rewards. The bridge goes only one way so once people who deposit ETH into the ETH 2.0 contract cannot move ETH back to the original chain.
As we mentioned in our review of Ethereum, Eth 2.0 is designed to be more scalable and performant than the original. The main idea is to start with a proof-of-stake Beacon chain on top of Eth 1.0 that coordinates future Ethereum subnetworks called shards that run in parallel and could eventually interoperate. These shards would be individual blockchains like Ethereum, but each could have it’s own use case so it would not congest the main network. Eth 2.0 includes implementing eWASM, a Webassembly virtual machine that will execute smart contracts written in C++ or Rust instead of Solidity.
The future roadmap above includes the implementation of shard chains in Serenity Phase 1 and future phases have yet to be finalized.