So, as digital artists interested in selling NFT crypto art, our biggest problem when dealing with the Ethereum 2.0 blockchain is the high cost of gas fees.
They are at the point where many artists can’t afford to participate in minting non-fungible tokens. You have likely heard about the upgrade to Ethereum Version 2, also known as Ethereum 2.0 or Eth2. I’ll break down what I know about the upgrade, including what it is, why it’s happening, and the expected timeline.
Most of what I’m about to cover comes directly from Ethereum.org, but I’ll try to break it down into digestible information. Let’s first dive into what Ethereum’s “upgrade” really is because it’s more complex than it sounds. Unlike upgrading software on your computer, it’s not as simple as flipping a switch and all of a sudden… goodbye gas fees.
The journey to version 2 is kinda series of upgrades, some of which had already occurred and were part of the original plan for Ethereum before it even went live in 2015. So although it’s been around for a few years, in the grand scheme of things, Ethereum and NFTs, in general, are in their infancy as a form of technology.
The three goals of upgrading Ethereum 2.0 are to make it more scalable, secure, and sustainable.
Table of Contents
The current Ethereum network, referred to as Ethereum 1.0, can only handle a small number of transactions per second. Diginex.com states that this number is 30 transactions per second. Many others estimate it is closer to 15 transactions per second. Think about that.
The whole world is going crazy for NFT’s right now, and only 15–30 transactions per second can be processed worldwide. At the very least, use Ethereum. So the goal of the upgrade is to get that number well over 100,000 transactions per second. This will speed up the processing time and reduce bottlenecks on the network, which is currently part of the reason for very high gas fees.
The second goal of the upgrade is to improve security on the network. It’s not that the network isn’t secure now, but splitting it up into a larger number of smaller nodes will make it more difficult for a single person or group to gain control of the nodes.
If any one person or group were to control 51% of the network, they could highjack the entire system. So, an obvious goal is to keep that and other types of cyberattacks from happening.
The current Ethereum 2.0 network uses a “proof of work” transaction system, which has large computers worldwide competing with each other to solve equations to validate a transaction. The proof of work process intentionally sacrifices efficiency for security.
Ethereum will move away from this process through a series of planned upgrades to what is known as a “proof of stake” system. This will also speed up transactions, reduce gas fees, and require far less computing power to run the Ethereum 2.0 network efficiently.
Upgrades on Ethereum 2.0
Let us look at the sequence of upgrades planned for the Ethereum network with those goals in mind. But, again, these were part of the original roadmap for Ethereum even before the blockchain existed.
The upgrades fall into three sets of projects, each with the following names: I will try to explain these as I understand them from the information available at Ethereum.org.
The first upgrade is “The Beacon Chain,” which includes behind-the-scenes work that sets up the blockchain for future upgrades. The good news: this upgrade was completed in December of 2020, allowing future upgrades to move forward. The bad news is that there’s no immediate impact on users.
The second upgrade implements “Shard Chains.” This will split the single blockchain into as many as 64 chains to spread the workload and improve security. This is planned to occur in at least two phases. But it’s not agreed upon if both phases even need to be implemented. Shard chains lay the groundwork for moving to proof of stake.
This will eventually allow a personal computer to serve as a node for verifying transactions. You don’t have to understand exactly how this all works. I certainly don’t.
But the key point is that this will be done in phases, possibly beginning as early as 2021. After the first phase, there will be improvements to the network capacity, but there will also be other benefits and a full transition to proof of stake.
It will depend on what decisions are made about the third upgrade project called “the Docking.” The Docking will merge the existing Ethereum 1.0 network with the rest of the Eth2 upgrades. This will mark the full transition to proof of stake.
This could happen in 2021 or 2022… Or it could be later. It’s not clear. But I wouldn’t hold my breath because there still seems to be debate among the many teams in the Ethereum community about how this will be implemented. Remember, Ethereum 2.0 is meant to be decentralized, so it’s not like there’s a CEO of Ethereum who can make a decision. There’s no single entity in charge…
So, coming to a consensus can take a while. This is complex stuff. What does it all mean for an artist trying to sell NFTs? Once the shard chains arrive, network capacity will increase, and more transactions can be processed. I’m not clear how much of an impact this will have on gas fees right away. It should help since it will remove congestion on the network, but it’s not the final piece of the equation.
Also, If you want to go more deep into getting information on ETH Gas fees, then do check this out!
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- [ LEGIT ] Pay Zero Ethereum Gas Fees With This Trick In 2022!
Depending on when and how the Docking occurs, Ethereum’s full transition to proof of stake should be a more significant overall improvement to the user experience on the network. I find it hard to believe this will happen in 2021, but I could be wrong.
What I think about Ethereum 2.0 and how it may affect NFT things and Gas fees
So, as artists, what do we have to do? Will our old Ethereum be obsolete? Will our NFTs be outdated? No, they will not. The answer is that you don’t have to do anything except waiting. Maybe that means sitting it out for a while. Many have no choice anyway because they can’t afford the gas fees.
Wnna know more about NFTs? Do check here:
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- Make Huge Millions Investing In Crypto Games & NFTs In 2022
- The MetaVerse & NFTs Combined Going To Explode Crypto Gaming 2022
We will have to hang in there while development teams worldwide continue to work toward the next generation of Ethereum. But as you can see, it’s not as simple as flipping a switch, and I’m not entirely clear on how much the next phase of the upgrade will help.
There seem to be very intelligent people in the blockchain world who understand the technology. But, unfortunately, I am not one of those people, and few of those people seem to explain it in terms that make sense to the rest of us.
Then there are artists and, presumably, you seeking an understanding of how to apply NFT technology to their lives and trade. I am trying my best to bridge the gap between those two. But it is important to realize that this technology still has a lot of evolving to do.
The most direct source of information on Ethereum is found at Ethereum.org. The link to several articles gives different perspectives on the ongoing project. These sources seem to be the most authentic, but the lingo can be challenging at times following the blockchain. These sources seem to be the most authentic, but the lingo can be challenging at times following the blockchain. That’s it for today, hope you liked the content we share through cryptocurrencysimple.com