On Wednesday, Ethereum developers passed a test for upgrading one of its blockchains from a proof-of-work system to a proof-of-stake system.
The transition from Ethereum to Ethereum 2.0 is going well. Wednesday passed a long-awaited test by the Ethereum community. Specifically, the developers of Ethereum have changed the Ethereum Ropnstet blockchain from the so-called “proof of work” (Pow) system to that of “proof of stake” (PoS).
Ethereum founder Vitalik Buterin retweeted a tweet from the specialist company Etherchain announcing the news.
This test is part of a major update to the Ethereum blockchain called The Merge, which is expected to take place in August. For Ethereum, this merger consists of the transition from a process of validation and mining called PoW to that of PoS. A big step to a completely different system.
The Difference Between “Proof of Work” and “Proof of Stake”
As a reminder, the “proof of work” (or proof of work) is a system that aims to secure many blockchains, especially Bitcoin and Ethereum, thanks to minors (person or group of people) using the computing power of computers to validate transactions and generate new blocks on a blockchain. For example, the fastest miners who validate a transaction on the Bitcoin blockchain are rewarded in Bitcoins.
For its part, the “proof of stake” (or proof of stake) is a system that aims to secure many blockchains and is considered an alternative to PoW. A cryptocurrency holder is randomly selected and, in particular, must prove that they own a certain amount of cryptocurrency in order to obtain the right to validate blocks in the network to ensure their security. This method is less energy intensive than PoW.
More miners and 101,000 validators to secure the Rospten network
Let’s go back to what happened on Wednesday. Launched in 2016, Ropsten was Ethereum’s oldest “testnet” to date. A testnet is an alternative blockchain that allows testing without compromising the user’s funds. The role of the different stakeholders (developers, validators…) in the update on Ropsten was detailed in a post here†
The transition from a PoW to PoS system on this blockchain has been successful, so miners can no longer mine on this network. Ropsten’s blockchain therefore no longer has miners but more validators on its network: they have gone from 100,000 validators at the beginning of June to 101,000 today. The latter blocked 32 ether each at an address to participate in the validation of a block, implying that more than 3 million ether were deposited to secure the network.
“A validator is an entity that participates in the consensus of the Ethereum 2.0 protocol, in other words, a human who performs a computational process. This process proposes and guarantees the addition of new blocks to the blockchain. In other words, you can think of a validator as a voter for new blocks.The more votes a block receives, the more likely it is to be added to the chain.It is important to note that a validator’s vote is weighted by the amount it receives. ‘he adopted’ Etherum explains on his blog.
Following this update on Ropsten, “the validators who are now securing the network via Proof of Stake (PoS) have started working and creating the new transaction blocks previously created by miners via Proof of Stake of work (PoW)”, explains. the founder of the specialized media Au Coin du Bloc, who prefers to remain anonymous.
Other tests for the main fusion The Merge
This transition from PoW to PoS on the Ropsten blockchain still deserves close scrutiny. “Fusion that works well for 6 hours is not proof of complete success,” said Vitalik Buterin Wednesday indicates that problems may be identified in the coming weeks.
For example, during the test, one of the Ethereum developers, Tim Beiko, identified a problem with missing blocks.
“Today we can’t say that the transition has been successful, it will take some time to see how the network reacts and if everything is working properly. Still, we can say that the implementation went well, which is very good news,” he said. the founder of Au Coin du Bloc.
So the developers will be making the same updates in the coming weeks as they did on Ropsten on two other test nets: Sepolia and Goerli. If the updates are also successful, it will lead to the big August update to the main Ethereum blockchain, which would go from a PoW to PoS system.
In comment published in May on the Ethereum site, the developers claim that the merged blockchain will consume 99.95% less energy after the transition. This merger will also lead to new developments on the blockchain, as mining will no longer be possible. Self-validators support mainnet validation.
In addition, this merger should reduce the issuance of circulating ethers, which would imply that with a limited supply, the demand for ether could be greater. Indeed, unlike bitcoin which is issued in limited amounts (up to 21 million bitcoins in the long run), there is no such limit for ether.