The staking system The proof-of-work (PoW) concept, in which cryptocurrency miners employ powerful computers to accomplish intricate mathematical operations known as hashes, is replaced by Ethereum. Ethereum transactions are verified by miners before being added to the public blockchain, which uses an increasing amount of electricity.
Systems that use proof of work consume a lot of electricity. For instance, the annualized electricity use of bitcoin mining is currently 127 terawatt-hours (TWh). Currently, that consumes more energy than the entire nation of Norway.
With proof of work, Ethereum has a carbon footprint akin to Switzerland and an annual power consumption roughly equivalent to Finland. In response to one of the main complaints of the cryptocurrency, Ethereum is anticipated to minimize its carbon footprint by up to 99.95% after the merge.
Ethereum vs. Ethereum 2.0: What’s the Difference?
Ethereum started employing two parallel blockchains in December 2020: a legacy chain for proof of work (Ethereum Mainnet) and a new chain for proof of stake (Beacon Chain). The merging of Ethereum's Mainnet and Beacon Chain created a single, proof-of-stake-based blockchain.
Since its introduction in 2020, The Beacon Chain has served as a proof-of-stake ledger on the Mainnet.
ETH1 and ETH2 were the initial names for the Ethereum Mainnet and Beacon Chain, respectively. Ethereum 2.0 was supposed to be the result of their eventual merger.
The Ethereum Foundation, however, requested that the phrase "Ethereum 2.0" be phased out starting in January. The Foundation came to the conclusion that the phrase no longer adequately reflected its roadmap. Although the merge is not at all meant to construct a new operating system, they thought Ethereum 2.0 sounded too much like one.
The Ethereum Foundation also requested that people stop using the term "Ethereum 2.0" and instead use "ETH1" and "ETH2" when referring to the Ethereum Mainnet and Beacon Chain, respectively. They feel that this nomenclature more accurately reflects their platform ambitions.
Ethereum 2.0 is still a term frequently used by cryptocurrency investors and enthusiasts to describe post-merge Ethereum.