Ethereum 2.0 is an update to the main network to improve the performance and security of the Ethereum blockchain network and the transfer process of ERC20 tokens on the blockchain network. The most anticipated event of many who have been active in the crypto world for many years is the Ethereum Merge (The Merge). The transition to Ethereum 2.0 is getting ready to come to life after two years of development. In the event called “Merge”, Ethereum will abandon the long-time proof-of-work system and switch to the proof-of-stake system. So what are these systems and their differences?

Proof of Work

The proof of work system is based on mining and miners compete to be the first to solve complex mathematical problems on computers that require high energy. The person who reaches the solution receives a predetermined amount of token reward. This system offers a high level of security and decentralization.

Proof of Stake

In the Proof of staking system, users stake their tokens, i.e. lock their assets, for a chance to verify new transactions, update the chain, and earn rewards. These assets cannot be withdrawn from the wallet until unlocked and are marked on the network as the user’s stake. With this method, users create new blocks in the chain while performing transactions as validators. This system provides a more sustainable solution for the ecosystem, thanks to its much lower energy consumption.

Is This The End of Ethereum Mining ?

Mining has played a very important role in making Ethereum until now. However, with Ethereum 2.0, miners will no longer be able to generate income from the work they have done so far.
Because the need for mining for Ethereum is ending. Miners can be validators on the new Ethereum blockchain. Or, they can choose to adapt the transactions they have implemented so far on different cryptocurrencies.

ETH 2.0 eliminates the need for high-energy mining. Instead, the network is secured using the confirmation mechanism of ETH staking validators. The move to a more environmentally friendly technology makes Ethereum even more attractive.

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