As a growing platform with a major focus on decentralization, Ethereum has been able to expand the number of validating nodes vastly and globally, with new nodes regularly popping up all of the world.
The Beacon Chain of ETH 2.0 launch now lets the Ethereum community use the newly implemented proof-of-stake (POS) methodology to validate transactions on the chain. Rewards come in the form of ETH. Ethereum is the second largest cryptocurrency by market capitalization behind Bitcoin. It has over $15 billion in total locked value (TLV) in the DeFi sector alone.
What is Ethereum 2.0?
Ethereum 2.0 is a cumulative upgrade for the Ethereum network. Vitalik Buterin and the Ethereum development team have been working on it for years. With the long anticipated implementation taking place on Dec 1, the proof-of-stake consensus has been introduced on the Ethereum Network.
This upgrade fundamentally changes the way transactions are validated. It allows the Ethereum network to operate more quickly. It simultaneously decreases user’s transaction fees. This upgrade drove an increase of validator nodes. User interest grew because they no longer need highly technical mining equipment in order to participate in the mining process. This upgrade could elevate Ethereum’s usability as a platform in essentially every way.
Even if Ethereum is a threat to governments, could they do anything about it?
Many view cryptocurrencies and decentralized financial applications as potential threats to governments. Questions arise regarding large cooperative efforts without centralized control. The question comes about being able to control such networks because they could fundamentally undermine centralized economic control.
However, with decentralization at the foundation of the Ethereum network, it may not be that easy. Twitter user @PhABCD pointed out, “Even if the US government was able to shutdown every single ETH node in the US, there would still remain about 8,000 nodes around the world, which is more than the total number of ETH nodes we had a few months ago.”
This is a major milestone for the Ethereum community. It shows that its current security is stronger than before switching validation mechanisms. The striking part is that this is true even if every node in the United States fell from the network. If regulation passed that restricted usage of these networks, there must be global cooperation to dent the ecosystem.
The user continues, “In addition, ETH2.0 creates a significant incentive for people to run nodes, which is likely responsible for the ~40 percent increase in nodes online in the last few months. The more validators join the fray, the more robust the network will be, and this is only the beginning”.