#CryptoUsersHit18M

The “new Ethereum network” you are probably referring to is Ethereum 2.0, a series of updates and improvements to the Ethereum blockchain that aim to address several issues related to scalability, security, and sustainability. These updates began to be implemented with the transition from the Proof of Work (PoW) consensus system to Proof of Stake (PoS) and introduced important new features to the network.

Major Ethereum 2.0 Updates:

1. Transition to Proof of Stake (PoS):

• The main defining change in Ethereum 2.0 is the transition from Proof of Work (PoW), the consensus system used until now, to Proof of Stake (PoS). In PoS, validators are chosen to validate transactions and create blocks based on the amount of Ether (ETH) they are willing to “lock” as collateral (stake). This reduces the need for energy-intensive mining, making the network more efficient and environmentally friendly.

• This change was formally implemented with the event known as “The Merge”, which took place in September 2022. The transition eliminated mining on Ethereum and now validators are responsible for ensuring the security of the network, being rewarded with ETH for doing so.

2. Sharding:

• One of the most anticipated improvements of Ethereum 2.0 is sharding. Sharding is a process that divides the Ethereum blockchain into smaller parts called shards, allowing different parts of the network to process transactions simultaneously. This can significantly increase scalability, as the network will be able to process a greater number of transactions in parallel and efficiently.