Ethereum founder Vitalik Buterin announced the Ethereum 2.0 update, which informs Ethereum’s ‘The Merge’ imminent and converts consensus algorithm from work (POW) to a proof (POS).

Vitali Buterin was a keynote speaker of Korea Blockchain Week (KBW) 2022 held at the Grand Intercontinental Seoul Parnas Hotel in Samseong-dong, Gangnam-gu, Seoul on the 8th. We will be able to build a universal Ethereum-based service.

Ethereum 2.0 is expected to increase the transaction per second from dozens of previous levels to more than 100,000. In addition to the speed of transaction processing, the fee is reduced, and the carbon emissions are reduced by 99.9% compared to the POS, resulting in eco-friendly effects.

Buterin said, Ethereum is in the final stage for the largest upgrade of POS conversion. I mentioned. The Ethereum Foundation has a POS conversion target on September 19.

Regarding the scalability of Ethereum 2.0, Buterin said, In the past two years, Ethereum focuses on rollups (the way to run transactions outside the Ethereum blockchain to overcome the scalability issue and record only the minimum result in the chain) We have been focusing on the strategy of expanding the Layer 2, he said. When the stay is over, the amount of data that can be uploaded to the block will increase, and the data capacity that can be processed through the rollup will increase.

In the case of TPS, it is expected to increase from 20 to 500 to 1,000 through the current rollup, and to increase to 6,000 by using data compression.

The transaction fee has also been $ 1 to 20 over the past two years, but after Merge, it can be reduced to $ 0.002 by using a rollup.

Buterin said, Cryptocurrency is designed to be introduced as a better payment method by utilizing digital technology in terms of safety and efficiency, but the debate has stopped due to the biggest problem of expensive fees. We will be able to consider money again as a major payment method.

If the fee is very cheaper, it is easy to use not only the financial app but also the non-financing apps for decentralized account management.

What Happens After the Merge

Buterin said, We plan to speed up the transaction processing by continuing to improve Ethereum.