ETHEREUM 2.0 - A GAME CHANGER? Proof Of Stake, The Beacon Chain, Sharding, Docking Explained
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- Опубліковано 30 лис 2020
- So what is the long-awaited Ethereum 2.0 all about? What is Proof of Stake, the Beacon Chain, Sharding and Docking? And what are the different phases of their rollouts? You’ll find answers to these questions in this video.
Let’s start with an overview of what Ethereum 2.0 is and why it’s even needed in the first place.
Ethereum 2.0 a.k.a Eth2 is a set of interconnected upgrades to the Ethereum network that aims at making Ethereum more scalable, more secure and more sustainable. These changes are worked on by multiple different teams in the Ethereum ecosystem, each team focusing on building a specific part of the whole upgrade.
Initially, the set of changes needed to achieve these goals was called “Serenity”, but now most people refer to it as Ethereum 2.0 or just Eth2.
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i just want to know how you got all those colors out of a black sharpie
Its called MAGICC......😂😂😂😂😂
lol
lol
It is called ETH 2.0
lol
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So helpful! Needed the visuals. 🙏🏽
That last statement about the looming irrelevance of the potential "Ethereum Killers" was potent, my man.
Real truth on that one.
Thank you for taking the time to make a visual representation. I know it took valuable time out of your day and it is much appreciated for those of us unconventional learners that really need to see what you’re talking about.
Indeed....indeed. "Dilly, Dilly!" I'm a newbie,....still in 11/2021 - having ETH, is finally making sense....as our FIAT money is about to die....even a simple RN can understand this basic change in society. So,...onto more learning...cost averaging and having faith in this new process and protocols. Money "laying under one's mattress" is now "supposedly" losing it's buying power by up to 1% monthly (as of November - 2021; now). So 100K in savings "today...will be worth in buying power....99K "next month...and so on". Why bother working "for the man...when the man is broke too?" The "Man is our Government".
Awesome video, super clean and very comprehensive! Is Casper $CSPR linked by anyway to Eth2 or there is no link at all?
You managed to make a foreign concept understandable. Thank you. I hope everyone gets a chance to hear your explanation. So clear and concise
I love all your videos! Just new to Ethereum, and your videos provide the best and clear explanation! Thank you!
thanks! 💛
Wonderful explanation. I do have to watch it a couple of more times before I can get my head around all the different architecture changes you talked about.
Ethereum is so effing brilliant. If Eth2 transition goes smoothly, and it can be secure on POS for a few years, that will be a huge bull signal for major financial institutions to move onto Ethereum in one way or another.
I think this will be the de facto platform for future finance, accounting, legal, derivatives, you name it.
@M.V.P. Agreed, ETH is still very much in the early phase, yet is still fully functional, see the roadmap. it is currently expensive and slow, but that is because nobody predicted how popular it would be. There are literally thousands of projects already built on Ethereum and a huge dev community. Regards, to expense and speed, it is fine for most financial apps, with the main thing being the security of smart contracts settled on layer 1 blockchain.
@M.V.P. I don't really know much about ADA.
@@tensevo As a blockchain developer, things like this make me laugh my ass off. The price of ADA has nothing to do with their underlying technology, almost every altcoin will explode during the bull phase, including simple ERC-20 tokens. Cardano doesn't even have smart contracts yet. Layer 2 scaling solutions and Ethereum 2.0 will make Cardano and Polkadot pointless. By the way, I would trust the creator of Polkadot a lot more than the creator of Cardano. Everyone in the blockchain development community hates the creator of Cardano, he's been kicked out of every project that he's been a part of, and he's always lying to promote Cardano.
@M.V.P. I know he contributed to Ethereum. He got kicked out just like every other project he's been a part of. Also, I never said you were a blockchain developer, I was saying that I am one. I'm not repeating myself, literally everything you mentioned was either already addressed by my previous comment, or in the video you obviously didn't even watch. Cardano isn't even finished yet, so Ethereum not being finished doesn't mean anything. Ethereum 2.0 and layer 2 solve every issue you mentioned. Cardano doesn't even have smart contracts yet, that's literally the most important part. Nothing is being built on Cardano. I have tried to use their developer tools, they are horrible. The only Ethereum killers that have a chance are Binance Smart Chain and Polkadot.
@M.V.P. Best of luck. After the last surge of the current bull cycle, it'sgoing be a long 4 or 5 years before ADA makes any moves in your portfolio.
អរគុណសំរាប់ VDO នេះ thanks for this vdo
A lot of value in n this video 🔥
How long will the transition into POS take to migrate.
Great content. Subbed. Do you have a thoughts on Eth 2.0 vs Algorand?
Algo is still a baby
I have my money into it but no way its reaching eth maybe in 5 years
Watched this twice and starting to understand better. Any recommendations for me to find out more?
This is the best explanation I heard so far.
Thanks!
สวย
Thanks for the video! How do you feel about the timeline as of now?
Your videos are very clear and the visuals are great. I love the way you explain things and make it easy to understand. Keep making great content.
Subscribed. New at this, and the explanation is great! Just a comment - doesn't the 'rich get richer' analogy apply here? In other words, only those with money (eth), can earn eth? More money (eth) you earn, the more you can stake to earn yet more eth? I might be missing a nuance, so apologies.
There will be pooling services that you can put a small amount of eth to if you want to participate.
But just like the regular stock market: the more money you put in the more money you get out
Can you explain what is stored in the blocks of the beacon chain initially since it's not validating the transactions on the current POW ETH chain. Is it just a bunch of empty blocks without any transactions? Thanks and keep up the great work!
Keep up the good work, make more videos about specially ETH LIQUID STAKING on like StaFi.
Best explanation about ETH 2.0, ever. You make it sound simple haha.
Thanks! :)
😭 eth tripped? 😭
Correct me if I am wrong, but ETH seems to have gone to a DeFi system where any average Joe could support the network and be rewarded to.... the richest ETH holders (those who hold 32 or more ETH *64,000* at time of comment) are now the only ones who will be able to validate / host the network via staking. And sure you can join a group to stake your ETH... but it hardly seems DeFi. It certainly feels like we are seeing a consolidation of the most wealthy ETH owners, those who may not even believe in the network or DeFi for that matter, but want to turn a profit stand to gain the most out of ETH 2.0. Have we come full circle, back to US Financial System, but over a Block Chain?
Valid point
Decentralized staking pools without min limit are already out there. Ethereum community innovates non stop.
What’s more worrisome to me is that if i were to treat ethereum or Bitcoin as a currency rather than a speculative asset that I’m betting I can get wealthy from, I might be trading a small amount of inflation with the U.S. currency for a substantial amount of deflation, assuming the value relative to US dollars continues to appreciate. That trend would disincentivize people from using at as a currency but instead hold on to it which has the significant effect of slowing the widespread adoption of it as a currency that is used as such.
In my point of view, there is Ethereum, Bitcoin, and bubble crypto's ! Before EIP 1559 Ethereum was ONLY the most successful Altcoin but Clearly after EIP1559 Ethereum can not be compared with anything else!
Also, validators get rewarded linearly by the amount they stake, not the amount of processing power they bring to the network.
This funnels ETH into the already wealthy, and creates a disconnect between processing power and reward.
It can be compared to feudalism.
Where we had a consensus mechanism that required no trust, we are going to a system that entrusts the wealthy and gives them a discoupled incentive to provide processing power by the means of avoiding punishment.
Thanks again, very understandable, even for a newbie like me!
Some of the best defi explainations I've ever heard. Easy follow from me
thanks!
Great video! It explains a lot of concepts very clearly. Thanks.
Glad it was helpful! :)
Wow dude, this is amazing. I love ETH and DeFi, I am always looking for good explanations to show people
Thanks!! :)
Great video! Thank you! The way I am seeing it - ETH2 will give a serious boost to the structure and system and allow many more players to be in the game along with strengthening and securing the whole dynamic. It's the upgrade needed to make ETH2 move forward.
Hi Finematics, thank you for the educational video. In regards to sharding, my limited understanding of computer sciences tells me that this only works correctly in centralized systems. How does an entire decentralized network get updated, if each node only holds a certain amount of fragmented data?
how does the validation process work in POS? is it automatic?
Love Ethereum and love your videos. "Ethereum Killers" - Give me a break. I can see other blockchains working along side Ethereum, interoperable and all that, but killing it... No chance.
Especially when there are dozens of new protocols being built on top of Ethereum almost every week it seems. Ethereum would really have to fumble the ball to lose their position at this stage.
Chains will have to aim for interoperability rather than killing Ethereum. That's what PolkaDot is doing via MoonBeam.
Finally I am feeling I understood this. Thanks!
Very very very helpful video! Kudos to you and your content!
Right???
hey great video! if i staked in a pool, would i be a validator of the eth blockchain? or id just be receiving rewards for providing liquidity
❤
By far the best video on eth2 I could find. Clearly explained and the visuals do help a lot. You have earned yourself a subscriber!
Awesome, thanks!
Two subscribers.
Agreed, but it is still so complex who knows what the heck is really going on
nice analysis! if only we had more people paying attention to the crypto market, the bullish movement on the crypto market these past weeks has been beneficial to both the hodlers and traders alike, but more for the traders. This i can say for fact because i personally being a signal user, i was able to trade and make profit running over 56k usd, although i had guidance from Mark Jean , we all can agree it has being a good run for crypto assets. Being a signal user for a while, i can firmly say Mark’s signals are the real deal, i have made quite a lot using his signals and others as well. strictly for crypto inclined concerns Mark can be reached on
@@AnthonyJones-ni4bm I made 10btc with his master strategy
As allways! very Nice content.
My question is just as you told in 6:44 Sharded Chains cant execute transactions and Smart Contract there for Layer 2 (like Rollups) is needed.
but later at 9:45 after DOCKING and the full transition you told the Ethereum 2.0 will allow Smart Contracts.
So what does it means? After Docking is still Rollups there for Smart Contract?
Thank you for making these videos. I am new to the crypto space and I do not have any advanced computer programming knowledge. I am a farmer. I keep coming back to your videos because they make these concepts easy to understand. I know that it takes lots of work to make high quality content like this so I want to let you know that I appreciate all of your hard work.
Thank you! Appreciate your comment. Glad to hear the videos are helpful. We want to make this space accessible to everyone, not only computer scientists :)
Do the holders of POW ETH need to do any software updates on their nodes/Wallets or this migration from POW to POS will be seemless for current ETH holders?
Subbed! Thanks for the helpful explanation!
This is gold 🔥🔥🔥🔥
Very good explanation. Thank you 🙏
great to hear!
The reward u get by staking eth 2.0 , is it sent to your wallet immediately or does it become available at the end of the staking contract?
At the end of the staking contract
@@nikhilkunde1805 rip liquidity
Hands down one of the best channels on Crypto. Turning on notifications. 😃
Your talent of explaining such complex topics with simple visuals is truly amazing. Keep up the great work. 👍
Thanks! Appreciate your comment :)
Agree! Amazing channel!
Do you mind sharing which other channels you find informative on the topic?
@@fridabinaev I find 'Coin Bureau' channel very insightful, although the visuals are not as cool as Finematics :D
@@RiFaTTareq Nice! I will check it out! Thanks for sharing and deffo Finematics is smashing it with the visuals!
This channel is a pure Crypto Gem.
thanks!
So...if I'm getting this properly is it valid to presume that sharding can become...for lack of a better way of putting this...fractal in nature? I'm not sure I'd want to lock up my ETH for the better part of 2 years as a vaildator, especially since the returns over time diminishing. But you can color me interested to see how it all plays out.
John~
American Net'Zen
Yeah i will too won’t be interested in etherum
Idk i see it as a CD. Plenty of people buy and hold their assets for years on end. Instead of it just sitting in an account somewhere, it can accrue interest overtime. For those that constantly trade and need liquidity, this wont be a good option. Algorand might be a better option for those that need liquidity but want the APY.
Me: trying to learn about future of crypto I'm invested in
Also me: lol it sounds like he's saying sharting
This is the best explanation 😍😍🙏
Very easy to follow. You definitely helped my research, thank you. Great Video!! You got me, New Sub.
Awesome, thank you!
Can you do a video on ADA?
Will my ETH I am currently am holding, carry over to this? Is it a different coin all together?
proof if stake gives control to the validator with the most tokens. So its actually pretty central based. The biggest validator doesnt only get to maintain a percentage of proportionate ownership, but they get to decide (have the most tokens = most voting power) which basically incentivizes hacks.
Super, I like your work
thanks! :)
been watching your contents for some time now, always appreciate your great work!
Thank you! 💛
Great job as always, with all the hype of the flare network and the spark token one of your videos would be a hit.
I really appreciate that he just explains the concepts and fundamentals instead of trying to hype it up or be some ramblings scatter brained salesman trying to get us sign up for shit with affiliate links.
In a world of confusion I am left at rest knowing you. To know it is to trust it. Ty. For being you
Nice video, but again nobody is talking about what happens with the value of current ETH if ETH2.0 is launched. Will ETH have less value like ETC? Will we also get ETH2.0 tokens for every ETH token we currently have?
I think the current ETH network will become part of the ETH 2.0. He talked about it becoming a shard i think.
@MrBusta wester
Hey! could you do maybe a video explaining atomic swaps and HTLC? I'm having a hard time visualising it
Such awesome and educational videos tho!
Sounds like a good idea for a future video. We also covered HTLC some time ago in our video on the Lightning Network ➡ ua-cam.com/video/9UIOeoBEjmw/v-deo.html
Would it be worthwhile to buy pre staking eth2 thru coinbase?
Network effects will play out. In the end, there will be ETH, BTC and may be one or two other chains, each with varying degree of use case. True variety will be happening on Layer 2.
This video aged like a fine wine. Great work.
Third time here. Every time learning something new, great content.
thanks!
Can ex. ALGO, ZIL, CEL, HBAR..... become shards?
Thank you for teaching us about sharting!
I actually actively shart while working with our application database at my job, I always thought it was just called "splitting", but sharting sounds way cooler.
sharding and sharting are two very different things
LOL
@@jacobkarim8358 thank you for clarification: Mistakes were made....
LMAO
Men behind ETH are absolutely brilliant.
Great explanation! 👏
Fantastic lesson!
Thanks! :)
wow, thank you ☺️
Incredible video; thanks.
5:09 gotta love me some Meth
Please do a Polka Dot video :3
So prof of work miners is out, and virtual/cloud mining is the new trends in Eth 2?
Very interesting! But what happens with people already holding ETH? Would they have to sell for, or exchange ETH with ETH2, or would the upgrade be automatic, like if you hold ETH, it would change itself in ETH2? Like an automatic software update?
To make it short, it is automatic, no need to convert your ETH into a new coin
@@philippemercier1637 what about the price though?
Its automated
@@FURIArts Very likely to go up
Hi, I have a small currency related question.
When ETHERIUM 2 finally begins (And finishes docking), with ETHER cease to exist and will ETHER 2 be a new currency or will both exist at the same time or will ETHER become ETHER 2?
There will be only one Ether unless the PoW (current chain) forks and maintains some value.
There is no eth 2.0 anymore. Just eth with an update
🥰... his voice
Question: How does Eth 2.0 differ from eth 1.0? Not in the sense of the upgrades and changes, but as the coin. Does that mean there is going to be a new coin called eth2 that ppl will start buying? Or will everyone who owns etc coins be converted to eth 2.0 like an “update.”
My understanding is very limited and I have been looking into eth and its advantages and how it can have a market cap greater than btc bc of the great platform it has and the value it brings. Thus I really want to understand how exactly this eth 2.0 will effect eth.
Thanks in advance and for your time.
I think the entire ETH network will become part of the ETH 2.0 network. He talked about the first shard or block encompassing the whole ETH 1.0 network.
Can anyone please explain if I should do anything with my current stack of ETH? Should I do something in regards to ETH2? Transfer somehow ?
Stake it
i staked .25 of one
You say that scaling only on L1 instead of on L2 would lead to lower security and dentralization. However, from what I understand L2 solutions also bring with them decreased security and decentralization. So, are you saying that all improvements to scaling, whether they are on L1 or L2, will necessarily lead to lower security and decentralization?
yes. moving away from POW just allows those who have already mined or have lots of capital to execute a 51% attack. say the US government with their trillions only need like 125 billion to shut it down. instead of having to buy and setup all the mines, they only need some code and ETH. hardware over software people
Mate your special will be sharing your work but i might keep u to myself lol
Another great video. Please make one on synthetic assets!
Thanks, there is a plan to make such a video! :)
CHAIN game a secret gem 💎💪
Not really a secret but ok
I think a technical comparison on why proof of work is more objective (and therefore more secure) than proof of stake needs to be made.
How cool would it be to have a school to teach you this instead of the garbage they teach in public schools?? 🧠🚀
Public schools teach learning and critical thinking. They build patterns to teach your brain not just to understand that garbage, but this garbage, and other garbage. It's not fun, it's effective. Do you think I remember the quadratic equation 10 years later? No. But I remember the mathematic principals behind it, the ± serving the need for two points on a single Y= line because a parabola has a symmetric curve that will always have two points on a single horizontal line (excluding the vertex) so when I see a pattern expressed as a parabola and not as a logarithmic function, I know there's a second point, double the Y-distance from the vertex, somewhere else on the chart. How is that useful? I, unlike a shocking amount of people, know that hypercars have nearly-identical acceleration and braking distances. Not because my cool-cars-100 class taught me that with a flashy animated video, but because physics taught me static friction being linear with downforce, math taught me about polynomials, and I put the two together. Did school teach me how to express this opinion? No, it taught me to lead a paragraph with a point, reinforce it with supporting arguments, then close with a summary that articulates my initial claim, for example, that you won't learn critical thinking by watching UA-cam videos instead of the approach public schools currently use.
The difference is, if schools taught "this" kind of content, you'd have a little bit of niche knowledge about a specific blockchain technology, but if/when this becomes obsolete, you'll be left without the ability to learn new things, which is something you're going to have to do every day for the remainder of your life.
This "I hate school because they don't teach useful things" attitude is very, very dangerous. You *have* to be able to learn things that don't interest you, it's a critical skill that many millennials and younger generations are lacking because schools are caving to these kinds of complaints. "Kids can't think for themselves", yes, that's why we don't let them vote, drive, choose what they learn or live on their own, but now we're getting _adults_ that can't think for themselves, don't have the attention span to sit down and read a book (let alone a technical document or paper), and can't understand problems because they weren't presented in a highly engaging UA-cam video like this one. This leads to further problems, like being unable to apply critical thinking to information presented (that image that "Madonna tried to removed from the internet" is an urban myth - there is no evidence she did so but you've never questioned it until reading it now), leading to people believing everything they read (5G causes cancer, masks don't work), again reinforced by "Edutainment" content reinforcing the thinking pattern of accepting information presented in an entertaining manner. That associates "I like this" with "this is fact", which disinformation campaigns can easily piggy-back off of as long as what they say makes you happy; because you have not learned to criticize this kind of content, you accept it. Ultimately, you're left in the real world without the mental tools needed to think for yourself, making you extremely easy to manipulate and take advantage of.
I'm not saying this kind of content is bad, but you have to understand, this is entertainment, not education.
@@CuthbertNibbles ok boomer
@@CuthbertNibbles dang, you really destroyed me when i read your comment.
@@cryptmoe you’re the boomer
@@CuthbertNibbles No, school teaches you that mitochondria is the powerhouse of the cell
Great video, greedy on ads though. Way too many.
Will it be the same coin of will it be like eth classic then they made etherium is etherium 2 gona be separate??
This is excellent, and the best way to understand. Thank You!
Thanks! Glad it was helpful :)
What is involved in validating? If I had 32 ETH to stake and become a validator, how does one actually validate transactions or new blocks? Is it an automated process or is it manual?
My understanding of POW mining is that it is random and the only way to increase your chance of getting a reward is to run more nodes. Is POS also random? Does the amount of ETH staked change your opportunities to get rewards?
I read somewhere a while back that it is proportional to how much you stake. So if you stake 5% of all eth in the network you get picked to validate 5% of the blocks.
Its all automatic. You just need a dedicated computer connected to the Internet with the software up to date and voila. It will do everything on ita own 24/7
Excellen content! Can you please do one for REN...Thanks!
There is plan to make one on different ways of getting BTC on Ethereum and DeFi which would include REN :)
Hi! Awesome video as always. Any chance that you may cover decentralized indexes (Power Index, Piedao, Defipulse index) please? Thank you :)
Thanks! Yes, I'll cover decentralized indexes for sure. Maybe in Dec or Jan 2021. Great suggestion!
Awesome! I look forward to your videos and watching your channel grow.
Awesome video!! Thank you!
You're welcome!
QUESTION
What happens to the coins lost by a validator node if it breaks the rules? Do they disappear into thin air?
it should be distributed among the good nodes. That would be what game theoretics would suggest. Punish the good ; reward the bad
@@generationgap416 punish the bad, reward the good
Keep up the great work!
best explanation but too much ads in one single 12mins video sir.
thanks, hmm we're running default UA-cam ads, but sometime UA-cam itself may decide to play more ads depending on how many you watched in a given period of time
ETH miners will end up winning too. They will still be validators for ETH 2.0 whilst connecting their GPUs to the Ethereum Classic blockchain for PoW mining. Polkadot is not conceived as an Ethereum killer but as a blockchain interoperability platform, so it will actually benefit from ETH 2.0. As for ADA, its founder has been talking a lot of bs against Ethereum and Ethereum 2.0, may suffer from projects halting migration or integration to Cardano when a far superior and famed Ethereum 2.0 is already in place. So far the only big project attempting a Cardano integration is Singularity Network, yet they are not abandoning Ethereum.
Also the signals arriving from financial institutions and institutional investors is that they are seeing ETH as a store of value too, which will lead to the flipening of dominance with Ethereum at some point in the near mid future.
Pos is the solution. I like the docking roadmap
By having different teams in the ecosystem means that the decision maker can be centralised?
This is such an incredible complicated protocol it is hard to believe that nothing will go wrong.
Hello, your vedios are very great!Would you like to make a translation ? I can translate Chinese so that broadcast more people !
And i who joined the mining community under a month ago with a rig... Should probably not have bought that one. It wasn't cheap! :D
Same here 🥲 We'll need to look for other coins to mine...
mostly clear video, thanks. It leaves me wondering how they would be able to do this though, Eth shares informtion on what they want to fix... but they still dont know how? They thought of this before the launch in 2013, but have not been able to launch it yet even though people have been clearly having problems with gas fees for years already? 2021 is a most unlikely rollout date if you ask me. I'd say 2023 is more likely.
coz it's a band aid solution
Man that's so complex to understand I'm going to watch it again 😂😂😂
Please do a video on solana and proof of history