Ethereum has been planning to upgrade its network for a long time. One goal of these changes is to make the Ethereum blockchain more scalable. This way, applications will run faster, and transactions fees will be lowered. Thanks to these improvements, Ethereum will be able to support thousands of transactions per second, which is a major improvement from the current rate of 30tps.

The upgrades will also make the network more secure so it can resist all forms of attacks. The current technology also requires huge amounts of computing power and energy, which is unsustainable. When the improvements are completed, mining will no longer be possible on the network, and this will reduce the energy requirement of Ethereum.

What does the upgrade involve?

A set of Ethereum upgrades are being worked on in parallel, and the time of deployment will vary based on certain dependencies.

One of these upgrades is the Beacon Layer, which was formerly referred to as ETH 2. This chain is meant to introduce proof of stake to the network, and this will significantly lower the amount of energy used to process transactions. The Beacon Layer will also conduct and coordinate the expanded network of shards and stakers. The difference is that the Beacon Layer will not be able to handle accounts and smart contracts – these processes will be handled by Ethereum Mainnet.

Another aspect of the upgrades is the Merge, expected to be completed in the third and fourth quarters of 2022. This is simply the merger of the Mainnet Ethereum and Beacon Chain. The merger will enable staking for the entire network and bring an end to the energy-intensive mining system. Most crypto investors appreciate the possibility to get continuous rewards, thanks to proof of stake (PoS). Crypto Lists has created a top list of proof of stake coins, that can be used to find cryptocurrencies with staking rewards. 

Before the merge takes place, users of the network will still be able to engage in mining as a way of securing the Mainnet chain. Since this is a key part of the transition to sustainability, developers are focusing their efforts on the merge and are minimising any features that could slow down the rollout.

In 2023, the ETH network will get another upgrade known as the shard chains. These will expand the capacity of the network to process transactions and store information. Shards will improve transaction speeds by extending the network to 64 blockchains. The shard chains will get more features, which will be rolled out in different phases.

While the upgrades have been scheduled, it is worth remembering that past upgrades have experienced delays. Therefore, you shouldn’t be surprised if they are rolled out slowly.

Staking ETH tokens

When the upgrades are completed, holders of ETH tokens will be able to stake their coins and receive rewards. This will help to secure the network. To stake coins, it's important to follow these steps: Set everything up on the launchpad; confirm the deposit contact address; and then stake the coins.

There are many ways of staking tokens, and these include solo home staking, staking as a service, pooled staking, and staking with centralized exchanges. These methods vary in terms of risk, rewards, and trust assumption. At the moment, more than 13 million tokens have been staked, and the average APR is 4.2 per cent.

Why is there no ETH2?

ETH2 is among the key upgrades of the network, and it has been changed to the Beacon Layer. The name was changed because it made people feel like ETH 1 would stop existing. Another reason for the name change is that it had become an inaccurate representation of the roadmap of the project.

Even with the existence of the Beacon Chain, ETH 1 will still be functional as the execution layer of the network. It will handle transactions and executions.

How to get involved in upgrading the network

Anyone interested in helping with this upgrade, can consider running a consensus client. A client is simply software that runs the blockchain and checks transactions. This role would also be helping with the creation of new blocks.

Another way to get involved is by staking ETH tokens as a validator. This helps to secure the network and gives you a chance to earn rewards on your tokens. Members of the community can also help to find bugs on the network. As a bug hunter, you will be able to test Ethereum upgrades before they are shipped, and whenever you find bugs, you will earn rewards. The network rewards bug hunters with up to $50,000, and successful hunters can get a place on the leaderboard. Some issues to look out for include denial of service vectors, finality breaking bugs, and specification non-compliance issues.

Conclusion

Ethereum has been upgrading the network and these improvements are set to continue past 2023. Some of the main upgrades that have been scheduled include the release of the Beacon Layer or ETH2, The Merge, and the implementation of shard chains. With these changes, holders of Ether tokens will be able to stake their coins and earn profits. By following Crypto Lists Ltd, it's possible to get more details about lots of different blockchain.

Disclaimer: The information provided in this article is being provided solely for informational and marketing purposes and should not be construed as investment, tax or legal advice.