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if you have any questions you can leave a comment below cryptocurrency decentralized finance bitcoin
and nfts and all sorts of things about online finance have been a big part of our lives
one of the most important installments on online finance is ethereum whether you already know what
ethereum is or not i will explain it for you in this video but most importantly i will talk
about ethereum 2.0 it's a new form for ethereum and it will change the ethereum game forever
with its new protocols and methods ethereum is a decentralized blockchain and if you do not know
what decentralized is you can check our video about defy the link is in the description below
ethereum is a technology that lets you send cryptocurrency to anyone for a small fee
it also powers applications that everyone can use and no one can take down sizing ethereum's
website in 2013 ethereum established itself as an infrastructure in which people can create
their own apps called depths using the solidity programming language ethereum aim to decentralize
the internet which is centralized by big companies such as google and facebook so ethereum opened the
gates for further evolution of the crypto world people have started so many projects
that took the internet world by storm such as nft to achieve that ethereum first launched
its cryptocurrency called ether which is placed in the heart of all transactions in the network
then it established its smart contract system a smart contract is a digital law on the ethereum
network that does not allow any changes in the system these contracts know if you have sent the
money and if it reached the other side and allows only this to happen this smart contract system
makes ethereum secure ethereum also works on proof of work method that means by mining you use the
processing power of your computer like many others in the network and your aim is to solve a problem
that is really hard to solve but easy to prove so when you solve this problem others who are mining
approve that your solution is in fact true and you can be rewarded these solutions are then blocked
encrypted and chained together which is why it's called the blockchain system so the system is
always kept under control by users themselves making it really secure and nearly impossible
to hack in 2021 ethereum announced that they will upgrade their system with some radical changes and
this will be called ethereum 2.0 first ethereum moves from proof of work to proof of stake
but what does it mean right now miners are rewarded for their process power so they use big
amounts of energy in order to solve and validate problems however in proof of stake you will be
rewarded if you commit your money to the system validators they call them should take 32 ethers
and by staking they create new blocks so that they can be rewarded the second big change is the
sharding system which will enable ethereum to make so much more in less time basically the blocks
will split into individual blocks that can be processed easily and by multiplying this number of
blocks that are easy to verify ethereum will use less power and that will enable users to make more
transactions for less money these changes will not arrive in a flash instead there will be phases in
which these changes will be executed so let's have a look at this phase structure phase zero
which launched in december 2020 implemented the beacon chain in the register of validators and
deployed the proof of work mechanism phase one has an anticipated lounge in 2021 the first iteration
of 64 shards will be launched phase 1.5 the merges when the current ethereum 1.0 chain
becomes an ethereum 2 chart at this point validators can both enter and exit the scheme
phase 2 shard chains is scheduled for the end of 2021 or 2022 and it will be an upgrade where the
64 shards will be fully functional with smart contract compatibility and other added features
okay but what will be achieved by all of that these changes are user-friendly because users
will be paying less for their transactions also ethereum 2.0 will be much faster and combined
with lower costs it will create new opportunities for different types of tokens such as nft moreover
people will not have to have big and bulky missions for mining this will bring more people
in the network so in this episode we covered ethereum and its next form ethereum 2.0 which
will be a big step forward for the crypto world thank you for watching fintech until next time
you