Blockchain and Crypto Blog

Ivan on Tech Academy provides latest insights and reports about the blockchain industry.

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Breaking Down ETH 2.0 - Staking Explained

Written By Ivan on Tech

Jun 11, 2020

With ETH 2.0 just around the corner, now is a good time as any to look into one of the most critical updates it’s bringing along - proof-of-stake (PoS). In this article, we will look at why the current proof-of-work (PoW) system isn’t refined enough for future scalability needs and then see how eth 2.0 is looking to integrate PoS. 

What is Proof-of-Work?

Quite like Bitcoin, Ethereum also uses a proof-of-work (PoW) consensus protocol. The core principle of PoW works like this:

  • Specialized nodes in the network called “miners” own mining equipment called “ASICs.”
  • The miner takes up transactions from the mempool to form a block and then hashes its contents.
  • They then add a random value called “nonce” in the front of the hash and then hash the overall value again.
  • Now the miner will compare the value of the hash against the network difficulty. The difficulty is a metric decided upon by the network, which adjusts according to the ease...
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ETH 2.0 - Exploring The Phases of ETH 2.0

Written By Ivan on Tech

Jun 10, 2020

Since Ethereum first went live in July 2015, developers have stayed the course to improve it consistently. And in comparison to other upgrades over the years, the upcoming phasing in of ETH 2.0 will introduce two significant improvements: Proof of Stake (PoS) and Shard Chains. The shift in the underlying consensus mechanism away from the existing Proof of Work architecture will improve scalability, accessibility, economic incentives, energy efficiency, and lower barriers to entry, amongst other things.

Consensus Mechanisms

A consensus mechanism is a process by which the blockchain network agrees on one single version of the truth. Unlike in centralized systems, where those in power can twist the truth for a variety of reasons like political alliances, greed, power grabs, cover-ups, or even blackmail, and multiple versions of the truth can be told to gain an advantage.

For example, let’s say an earnings report is due to come out from a large corporation. And it just so happens,...

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