Tag: Blockchain company

A Brief Introduction To The Decentralized Oracle Network

Posted on by Monica

 

Blockchain technology supports the multibillion-dollar cryptocurrency industry and promises to revolutionize how we trade, interact, or exchange finances. As a decentralized digital ledger, Blockchain eradicates the requirement for third-party validation while guaranteeing best-in-class security standards, immutability, and transparency. The diverse participants in the channel are named network nodes, and they are the ones who manage everything.     

In addition to its merits, Blockchain technology also has some loopholes. Using one Blockchain system to trade data is easy but exchanging data across multiple Blockchains is more challenging. This is where Blockchain Oracles come into space. Oracles function as a bridge for linking Blockchain ecosystems to exterior data inputs & outputs. Besides enhancing the working capacity of a Blockchain network, they also ensure the accuracy of the data statistics available to users. 

This blog will help you understand what Blockchain Oracles are and how a Decentralized Oracle Network works. So, let’s get started!

What Is Blockchain Oracle Network?

Blockchain Oracles act like a bridge to connect the on-chain and off-chain worlds. They play a key role in letting deterministic Blockchain access non-deterministic values. But having a single oracle provide value to the Blockchain challenges the trustless principle of Blockchain. Being dependent on this single oracle might be risky; what if that oracle itself is compromised or is getting data that was compromised before reaching the Oracle?  

To solve this problem, the Decentralized Network of Oracles is designed in such a way that oracles form the core of this network, forming an infrastructural layer. Here they work beside Blockchain, gathering, processing, and then supplying the verified aggregate result to the smart contract in Blockchain.   

Blockchain Oracles Key Functionalities   

Oracles provide several functionalities but here view the key functionalities of it:   

  • Collecting data from the off-chain world  
  • Send the data to a smart contract on Blockchain by using a signed message  
  • Store the data in the smart contract’s storage so that it remains accessible

Note: The stored data can be accessed via the smart contract’s “retrieve” function call. 

Determine The Type Of Oracle 

An oracle can be determined based on the type of data required by the Blockchain as described below-  

Immediate Read 

It is used when a result is required on a just-in-time basis. For example, to verify someone’s identity.

Publish Subscribe

This is used when the required data keeps changing. Whenever a change occurs, it is notified by polling a smart contract or by keeping a watch on the updates via off-chain triggers. For example, weather updates.  

Request Response

It is used when users need to use only a small part of a big data set at any given time. In this scenario, data is too large to be stored in a smart contract; therefore, a combination of on-chain smart contracts and off-chain infrastructure is used. 

A request is sent from the Blockchain to off-chain infrastructure, which keeps monitoring for requests, processes them, and returns results. This being an asynchronous process, follows multiple steps. For example, geolocation data for tracking and tracing in the supply chain.

The steps for a request- response oracle set up

How Does The Decentralized Oracle Network (DONs) Work?

We can have a single or mixed type of oracles in the network. Understand how the decentralized oracle network works with Chainlink’s architecture for the data feeds. These data feeds enable Smart Contracts to quickly connect with the real world and include the following components –    

Consumer 

An application that uses data feeds. It may be an on-chain or off-chain application, where its contracts called consumer contracts calls functions on the proxy contract and retrieve information from the aggregator contract.

consumer

Proxy Contract 

They are proxies that are on-chain contracts pointing to the aggregator for data. With the use of proxies, the upgradation of the underlying aggregator becomes seamless due to zero service interruption to consuming contracts. They may vary for different data feeds as per the application requirements.

proxy contract

Aggregator Contract    

This contract receives data updates periodically from the decentralized oracle network. Then it stores the aggregated data on-chain for the consumers to retrieve and act upon it in the same transaction.

Connecting smart contracts to external data (off-chain) is done using a decentralized oracle network. Chainlink handles API requests by 1:1 by an oracle. It does this by using the following models – 

Basic Request Model   

This model is used when data is required from a single oracle source.      

Contracts Overview 

The following diagram shows the flow of its contract, the open-source code of which is available at the Chainlink Github repository.

Architecture Request Model Image Reference: Architecture Request Model

Chainlink Client  

It is a parent contract of the basic request model that allows smart contracts to take data from oracles. It sends the required encoded information via transferAndCall function request to chainlink oracle via LINK token.   

LINK Token  

It is an ERC-677 compliant token that executes the transferAndCall request sent by ChainlinkClient. It lets token transfer and triggering of logic in a single transaction in the receiving contract via onTokenTransfer call.   

Oracle Contract  

These run beside off-chain oracle nodes and are owned by oracle node operators. They are responsible for handling on-chain requests received via onTokenTransfer through LINK Token. 

Oracle Request  

It must be made by the client contract that initiated the process with the following must-haves:   

  • Oracle Address – which oracle to contact 
  • Job ID – which tasks to perform  
  • Callback function – through which the oracle shall send back the response  

Completion  

On completion, a fulfillOracleRequest function returns the result to ChainlinkClient via a defined callback function.   

Oracle Node (Off-chain) 

It listens to the events of its on-chain smart contract. On listening to the OracleRequest event, it uses the data emitted to execute the task.  

For example, a GET request to an API retrieves data, parses the response, converts the result into Blockchain-compatible data, and then sends the result back via the fulfilllOracleRequest function to the oracle contract.    

Decentralized Data Model 

This model is used when data is aggregated from several independent oracles nodes in a decentralized oracle network. 

Data Aggregation 

Each data feed is updated by independent oracle nodes of the decentralized oracle network, and the AccessControlledOffchainAggregator is used to aggregate the data on-chain. The aggregation process is improved by Off-Chain Reporting (OCR). 

Shared Data Resource 

Every data feed has its own properties, and each data feed is created by a community of users. These users rely on accurate data in smart contracts. In order to enhance the quality of the data feed, more users are added that add their contribution to the data feed, thus, enhancing its quality.   

Decentralized Oracle Network (DON) 

It consists of a consumer contract, a proxy contract, and an aggregator contract. DON updates each data feed where the number of participating oracles in each data feed varies. Every oracle operator is awarded for publishing data. For any update to take place, the data feed aggregator contract must have a minimum number of oracles to respond in an aggregation round, or the update will not be published. This data is validated and aggregated by a smart contract which forms the latest response of the feed.   

Updates are received by aggregators from DON only when a trigger happens on the Deviation Threshold (when off-chain values vary by more than the specified variation threshold from the on-chain value) or Heartbeat Threshold (after a specified amount of time) while in an aggregation round. The first met condition triggers an update to the data.

Off-Chain Reporting 

In Off-Chain Reporting (OCR), nodes communicate off-chain using a peer-to-peer network. A lightweight consensus algorithm is executed during the communication process. During this communication process, every node returns its observed price and signs it. The result is then aggregated and sent as a single value, thus saving a good amount of gas fees. 

During the process, nodes regularly elect a new leader who is responsible for the execution of the whole process. The leader repeatedly asks their followers to send freshly signed observations & aggregates them into a report. The report is then sent back to followers for verification of its validity. If the required number of followers approves the report, then a signed copy is sent back to the leader, who then combines it into a final report along with the signature of the followers who approved it, and then the leader broadcasts that report to the whole network.    

As per a randomized schedule, nodes in the DON try to transmit the final report to the aggregator contract. The aggregator contract then verifies that the required number of nodes have signed the report and reveals the median value as an answer to the consumers, along with a block timestamp and a round ID.    

During transmission, the Blockchain is watched by all the nodes for the final report, and in it, if any single point of failure is discovered, then that is removed. A round-robin protocol is used when the desired node does not get the transmission confirmed within the given time period; in this case, other nodes keep transmitting the final report till the time one of them gets confirmation.   

Ending Words

Blockchain technology can only be expanded globally if a secure infrastructure facilitates communication between smart contracts and external sources. Without oracles, smart contracts cannot attain their full potential, as they would only rely on on-chain data for work. 

With decentralized oracles, Blockchain networks can ease different system risks & operational limitations. In addition, Blockchain oracles can provide businesses with an interface that is trustless, secure, and safe for them to develop and grow within a decentralized economic system; if you also want that, then connect with a reliable Blockchain development company (Infrablok).

Moreover, if you are seeking help to call APIs from Ethereum smart contracts using chainlink oracles, follow the steps present in our tutorial.

Note: To write informative information on this blog, we referred Chainlink Architecture doc! 

Blockchain Technology vs Cryptocurrency: Know The Difference

Posted on by Samita Tiwari

 

In the business world, people have a lot of confusion regarding Blockchain and Cryptocurrency. Well, they both are different terms often employed interchangeably.

Cryptocurrencies are digital currencies that make use of Blockchain as a ledger for stowing records of crypto transactions. Whereas, Blockchains have many benefits beyond cryptocurrencies which includes storing and accessing medical data, supply chain & logistics, and financial records.

To help you better understand here in detail, I have explained a few crucial things related to Cryptocurrency vs Blockchain technology.

So, let’s get started!

Blockchain Overview

It is one of the trending technology which is used to store records or electronic databases using a distributed ledger system. Blockchain technology stores enormous amounts of data in (such as Cryptocurrency transaction records) blocks, groups, or hashes.

These blocks are distributed across numerous computers or a “distributed ledger.” Once each block reaches its storage limitation, it is “chained” to a block loaded previously, and a new block comes into service.

Blockchain Key Features

 

Blockchain Working

A Blockchain ledger includes two sorts of records, individual transactions & blocks. The primary block comprises a header and information related to exchanges occurring within a set time. The block’s timestamp is utilized to make an alphanumeric string called a hash.

After the primary block has been made, each resulting block in the record utilizes the past block’s hash to compute its own hash.

Before adding another block to the chain, its authenticity should be checked by a computational cycle called consensus or validation. Currently, in the Blockchain process, a bulk of nodes in the network must consent that the new block’s hash has been calculated accurately. Consensus guarantees that all duplicates of the Blockchain distributed ledger share a similar state.

When a block has been added, it can be referenced in ensuing blocks but cannot be altered.

If somebody endeavors to trade out a block, the hashes for past and ensuing blocks will likewise change and disturb the record’s common state.

At the point when consensus is not conceivable, different PCs in the organization know that an issue has happened, and no new blocks will be added to the chain until the issue is settled.

Normally, the block causing the mistake will be disposed of, and the agreement cycle will be rehashed.

Pros And Cons Of Using Blockchain

Pros

  • Decentralization
  • Network distribution
  • Low costs for users

Cons

  • High implementation costs
  • Private keys
  • Inefficiency
Read More: Accessing Real Time Data Using Chainlink Oracles

Cryptocurrency Overview

A Cryptocurrency is a digital store of value primarily for buying and selling services, goods, or property. Popular examples include Bitcoin, Ethereum, and Litecoin.

No centralized authority issues or controls these digital currencies, so they are cryptographically protected against counterfeiting. Moreover, Cryptocurrencies are also known as tokens or coins.

Cryptocurrency Key Features

Cryptocurrency Working

Cryptocurrencies operate on a distributed public ledger known as Blockchain, a record of all transactions revamped and held by cash holders.

Units of digital currency are made via mining, which includes utilizing the PC’s ability to take care of muddled numerical issues that produce coins. Users can likewise purchase the monetary forms from agents, then store and spend them utilizing cryptographic wallets.

Assuming that you own cryptographic money, you own nothing unmistakable. What you own is a key that permits you to move a record or a unit of a measure starting with one individual to another without an authorized third party.

Moreover, Bitcoin has been around since 2009, cryptocurrencies & applications of Blockchain technology are still emerging in financial terms, & more benefits are anticipated in the future. Transactions involving bonds, stocks, & other financial assets, could ultimately be traded utilizing technology.

Pros And Cons Of Using Cryptocurrency

Pros

  • Protection From Inflation
  • Self-governed & Managed
  • Simple Currency Exchange

Cons

  • Illegal Transactions Can Be Done
  • No Refund Or Cancellation Policy
  • Susceptible To Hacks

Blockchain Vs Cryptocurrency: Similarities Between Both

The factors explained below will help you know the similarities between Blockchain technology vs Cryptocurrency.

1. Intangible

Blockchain technology and cryptocurrencies are both intangible. Cryptocurrencies are intangible digital coins that no one can hold physically, like the US dollar or the Indian rupee.

The Blockchains utilized for storing cryptocurrencies do not exist in a single area or the form of a physical data center.

2. Advanced

Cryptocurrencies and Blockchains are technologically advanced. Blockchain is the underlying technology behind cryptocurrencies. Blockchain is more refined and secure than traditional databases.

On the other hand, Cryptocurrencies are more advanced in comparison with physical or paper-based currencies.

3. Interdependent

Blockchain came into reality to record bitcoin transactions (the world’s first cryptocurrency). All major cryptocurrencies have Blockchains for storing transactions.

For example, if someone buys a new bitcoin, its data related to the transaction will be recorded in a bitcoin Blockchain.

Difference Between Blockchain Technology and Cryptocurrency

Well, Blockchain platforms without Cryptocurrency do exist — and may also be a better bet for some use cases. We can say Cryptocurrency is merely an app running on top of a Blockchain. The model changes in some way without Cryptocurrency (coins), but it’s still possible to build a valuable platform. Here are the few major differences between both:

1. Monetary Value

All cryptocurrencies, whether Bitcoin or Ethereum, have their own economic value. You must have heard of Bitcoin hitting a high of $65,000 or Ether reaching $4,000. Whereas, Blockchain does not have any monetary value.

2. Usage

Blockchain technology is used for recording transactions in MedTech, FinTech, as well as logistics. On the other hand, Cryptocurrencies are digital tokens, or digital money, used for buying goods & services, plus they can be used for investment too.

3. Transparency

Being a public ledger, Blockchain is highly transparent. Anyone can join a Blockchain network & view the data which is available. On the other hand, cryptocurrencies offer anonymity, meaning no one can know or see the source or destination behind the transaction.

4. Mobility

Blockchain technology is completely decentralized and distributed worldwide, meaning there is no particular location where data is recorded. On the other hand, cryptocurrency is a part of the Blockchain and can be accessed using smartphone wallets. Say you have an Ethereum wallet; it can be used at any location for transaction purposes.

Conclusion

As we all know, that Blockchain is one of the hot topics around the business world, so several people are just exploring this technology. People often confuse Blockchains with cryptocurrencies. Some tend to believe that they are just synonyms.

Hopefully, this “Blockchain Technology vs Cryptocurrency: Know The Difference” blog will help differentiate between the two.

Wanted to take this opportunity to introduce Infrablok, a new gen web 3.0 tools & services company that specializes in providing blockchain solutions based on the needs of any business.

Accessing Real Time Data Using Chainlink Oracles

Posted on by Monica

 

Blockchain and its new cryptocurrencies and chains are becoming popular day by day, making it one of the fastest-growing technologies in the business world. The first chain that came into the market after Bitcoin was Ethereum which brought the concept of “smart contracts.”  

These smart contracts are paving the way for solving various real-world problems in the immutable, decentralized, distributed, yet trustworthy network. It means that Blockchain is no longer fixed for the cryptocurrency market. But it can also be employed to solve realistic problems by setting up terms or agreements in the form of some computation done in smart contracts (written in a programming language).

With this breakthrough, new ideas sprang up that brought solutions to the problems of the centralized world into the decentralized world. But with this, some significant bottlenecks in the advancement of Blockchain came up.    

Before discussing accessing real-time data using Chainlink Oracles, it’s also essential to know the Blockchain technology bottlenecks. By knowing this, you can overcome challenges in less time. 

3 Major Bottlenecks In The Advancement Of Blockchain

Blockchain Oracles Problems

1. Every Transaction In Blockchain Takes Place On Blockchain

Every computation, be that solving a simple calculation from the Blockchain data (called on-chain data) or a complex computation that involves data from the real world (called off-chain data), in real-time, is needed to take place Blockchain itself.  

It means that there had to be a way devised for an isolated system like Blockchain to access not only its on-chain data but also off-chain data. If this is achieved, putting a massive amount of data (off-chain data) on Blockchain would create extremely high levels of redundancy in every system that processes blockchain transactions.   

2. No Relation Between Real World Data & Smart Contracts

There is no link between off-chain data & smart contracts, which means smart contracts could not process any computation related to off-chain data.   

3. Bigger Transaction = Higher Cost

If any real-world problem ought to solve with Blockchain, then data has to be migrated over to Blockchain to solve that transaction, which means more time consumption will lead to a higher transaction (gas) cost.

How To Access Real-Time Data Employing Chainlink Oracles?

To solve the real-world computation off-chain & feed the solution to the on-chain smart contract, some mechanism that can make off-chain data immutable, decentralized, distributed, & secure was required. To make this possible, Chainlink created Oracles and combined them to form a Decentralized Oracles Network (DONs). 

Oracles acted as entities that could connect off-chain data with the Blockchain’s smart contract. Oracles can solve all off-chain computations by preserving all the core fundamentals of Blockchain & acted as a bridge to feed the solution to the Blockchain’s smart contract. 

Additionally, they enabled 2-way communication by creating a communication link between on-chain & off-chain data. It means all high costing computations can now be done off-chain while keeping it immutable, decentralized, distributed, & secure. 

Oracles can achieve this connectivity by interfacing with external APIs & data feeds, allowing them to pull data for or push data from a smart contract. 

Did You Know One Oracle Can Mislay Whole Trustworthiness?

Well, one Oracle could not be called decentralized or distributed as it certainly wasn’t giving immutability. This resulted in a loss of whole trustworthiness as data was received from outside a blockchain network. To feed any data to Blockchain, any system outside the Blockchain must have the same fundamentals. 

Decentralized Oracle Network (DONs) To Maintain Credibility

To maintain trustworthiness, DONs were formed. The DONs is a network where several Blockchain oracles run by independent node operators are selected to retrieve & validate data from multiple off-chain sources. It ultimately helped achieve a Blockchain kind network outside of Blockchain in the real world to process any off-chain data.  

It works as a Blockchain because the oracle nodes of these DONs have a resultant value aggregated to get a single trusted data point fed to the on-chain smart contract for further execution.  

Moreover, the independent network of multiple DONs running simultaneously and independently of each other formed the chainlink network. In simple terms, Chainlink is a decentralized network of Oracles that lets users securely connect off-chain data to on-chain smart contracts & vice versa. 

Know How Users Can Securely Connect Off-Chain Data To On-Chain Smart Contracts & Vice Versa

Here we have given an example that will help you understand the working to know how users can securely connect off-chain data to on-chain smart contracts & vice versa. 

how users can securely connect off-chain data to on-chain smart contracts

Assume there is an insurance company that insures packages delivered across the globe. John visits this company and asks to insure his package that requires to reach its destination in 3 days. In this case, if the package gets delayed due to any reason related to the flight carrier, John gets the claim. But, in case of delivery delays, various checks are done by the insurance company to ensure that the package was not delivered on time due to the lagging of the flight carrier; thus, settlement of the claim becomes a lengthy process. 

To solve the above issue, the insurance company decides to opt for a Blockchain-based solution, & to fetch flight data in real-time, they opt for oracles. This oracle-based insurance company will monitor data coming through oracles via API and transmit the required information to the Blockchain. Then, with the help of smart contracts (based on the preset agreement between the client & company) and oracles, the Blockchain will determine if the events are occurring as per the preset agreement or not through consensus.

Smart contracts will then control the action to release a claim or not. Being on Blockchain, the whole process gets transparent, allowing the clients to track the status of the flight, henceforth, their packages. Thus, making it automated and trustless increases faith in the process, paving the path for smoother and faster claims.   

Wrapping Up

Chainlink is also developing optional attributes such as advanced oracle computations, oracle and data privacy, and much more. By ensuring high security & credibility guarantees on par with the Blockchain, Chainlink oracles enable more refined smart contracts. Moreover, to know major things related to Blockchain Oracles, click here. 

If you are looking to access real-time data using Chainlink Oracles or want to overcome Blockchain oracle issues in your blockchain ecosystem, take help from the best Blockchain development company (Infrablok). It will help by offering innovative Blockchain solutions.

Ethereum Vs Ethereum 2.0: Will ETH 2 Replace Ethereum Classic?

Posted on by Samita Tiwari


Cryptocurrencies’ invention provided a new way to make investments and payments. With cryptocurrencies, Blockchain technology came into reality, revolutionizing the global markets. Blockchain, with cryptocurrencies (Bitcoin and Ethereum), is empowering various industries like healthcare, agriculture, banking, and more. It offers secure transactions at an affordable rate.  

Moreover, Bitcoin is the very first cryptocurrency in the crypto space. Ethereum is the 2nd largest cryptocurrency and is home to several NFTs, DeFi, and dApps projects. In 2015 Ethereum’s first version came into existence.        

But as we all know, timely updates enhance the working of technology and make it more user-friendly, and to meet the current market standard, Ethereum decided to roll out Ethereum 2.0 in 2022. Ethereum 2.0, or you can say “Serenity,” “Eth 2.0,” or the “New Ethereum,” aim is to give users sustainability and faster transaction speed.    

Well, now you might be thinking about Ethereum vs Ethereum 2.0 which to buy? To help you make a suitable decision here, we have compared several factors that will help you get a clear understanding of Ethereum and Ethereum 2.0.  

So, let’s get started!

Ethereum Overview

Advantages of Ethereum

Vitalik Buterin, a Canadian-Russian programmer, launched Ethereum’s first version in 2015. It is an open-source, free, decentralized Blockchain platform that works on smart contract functionality and specifies a peer-to-peer network among its users.     

With the popularity of smart contracts by Ethereum, worldwide programmers are able to use Blockchain to form dApps. Ultimately resulting in giving way to some of the significant crypto innovations, such as NFTs & Blockchain-based games.        

Key Features 

  • Data Coordination 
  • Permissioned networks 
  • Private transactions 
  • Tokenization 

Ethereum 2.0 Overview

Ethereum 2.0 Update

Ethereum 2.0 is not completely a new Blockchain but an upgraded version of Ethereum. The governance mechanism of the network is modified from proof-of-work (PoW) to proof-of-stake (PoS). Whereas the new Ethereum update will help catch up with some of the newer Blockchains, including Polkadot, Cardano, Solana, etc., already using the PoS model.             

Moreover, the PoS model is not sudden or unexpected. This update has been a part of Ethereum’s roadmap for a long time to attain more security, sustainability, and scalability.       

Key Features     

  • Sharding
  • Faster Transaction Speed
  • Secure 

If you want to know more about ETH 2.0, connect with the expert working in the reliable Ethereum app development company. By doing so, you will be able to get a clear understanding of how Ethereum can help you grow your business.  

Difference Between Ethereum And Ethereum 2.0 

The below-stated crucial features will help you know the difference between ETH and ETH 2 and analyze which one is better (Ethereum vs Ethereum 2.0). 

Consensus Mechanism Modifications

Ethereum works on the proof-of-work (PoW) mechanism, whereas Ethereum 2.0 works on the proof-of-stake (PoS) mechanism. Moreover, the PoS mechanism helped Ethereum 2.0 become more decentralized in comparison with older Ethereum. 

Since using the latest version of Ethereum, users don’t have to buy expensive rigs, and anyone with a specific amount of ETH can partake in mining new tokens. Resulting in more user participation leads to more decentralization.        

Sharding

Another important update that makes Ethereum 2.0 different from the classic Ethereum is sharding. Sharding is a phenomenon in which data is distributed in various machines to enhance processing speed. Likewise, in Ethereum, it has been accomplished by orienting 64 shards.  

Each shard is a new chain connected to the older Ethereum chain to link with the previously recorded data. Moreover, all work the same as the old one, but the difference is that Ethereum 2.0 workload has been distributed onto multiple databases.        

Sharding directly manages Ethereum’s scalability issues. The classic Ethereum can only handle 15 transactions, whereas Ethereum 2.0 is much more efficient and can complete 100,000 transactions per second.   

To make this point clear, consider the older Ethereum Blockchain as a one-lane highway with a lot of traffic. However, following the recent upgrade (Ethereum 2.0), 63 new lanes have been added. By doing this, the flow of traffic has been smoother, while its speed has increased.  

Beacon Chain

We already discussed that the new Ethereum version that is Serenity, or Eth 2.0, is divided into 64 distinct chains and how validators are fixed to add a new data block to them. In addition, one Blockchain connects all 64 sharded chains to control the same, enabling transactions throughout the network. This central element is a major part of the entire ecosystem and is known as Beacon Chain.   

Beacon Chain’s main functionality is that it randomly nominates the next validator and monitors its activity. Moreover, it’s also liable for slashing the staked amount if an exploitative trial is witnessed. The randomness in validator selection is crucial to guarantee that the system is not biased toward a specific participant.   

Cryptocurrency

Both networks, Ethereum Classic and Ethereum 2.0 have a native cryptocurrency with accounts & balances that can be transferred. On Ethereum Classic, it is known by the name of ether or ETC, and in Ethereum 2.0, it is known as ether or ETH.   

In both networks, the currency can be split up to 10^18, making the smallest unit, the “Wei,” 0.000000000000000001 of 1 ETH or ETC.

Ethereum vs Ethereum 2.0: Comparison Table

Ethereum vs Ethereum 2.0: Comparison Table

Ethereum 2.0 vs Ethereum: Which One Is Better?

The factors stated here will clear all your doubts related to Ethereum Vs Ethereum 2.0: Which One Is Better? Ultimately aiding you in picking the best one for your business activities.  

1. High Performance

Ethereum 2.0 utilizes PoS as a consensus mechanism and has a flexible monetary policy with no supply cap, and the database is fragmented, so more shards can process more transactions collectively. As a comparison, ETC currently has a throughput of ~680,000 transactions a day. This is perfectly comparable to high-value systems such as Fedwire (US) and Target2 (EU), which settle ~$11 trillion a day. 

However, Ethereum 2.0 will handle many times the number of transactions. This means ETH 2.0 will be perfectly comparable, in small transaction performance, to PayPal, Visa, or even the proposed Libra currency by Facebook. 

2. High-Level Security

The main goal of the new Ethereum community is to ensure high-level platform security for developers and investors. If I talk about older days, then each day, several hacking incidents on different Blockchains emerge, resulting in people losing their money. But moving toward a PoS system will surely minimize the threat of cyberattacks.  

Moreover, Ethereum 2.0 can also deal with a threat that comes with a 51% attack risk. Being a decentralized platform, Ethereum’s developers must ensure that no single party tends to take over the bulk of the network.   

3. Sustainability

Eco-friendliness is the most important thing a new project can do to gain a foothold in the Blockchain world. Ethereum’s Blockchain was dependent on mining under the old PoW consensus model. 

To mine bitcoins, miners needed highly complex computing devices that consumed large amounts of electricity. But, the newer PoS model makes Ethereum 2.0 more eco-friendly and sustainable by eliminating the entire mining network.   

4. More Scalability

Ethereum 2.0 has the capability of hosting numerous DApps and DeFi services. According to research, it has been found that Ethereum is home to nearly 80% and 90% of the total DeFi apps and NFTs, respectively. This activity generates a great deal of traffic and thousands of transactions every single day.  

However, the classic Ethereum Blockchain can only manage 15 transactions each second. This resulted in users paying high transaction fees and dealing with delayed transfers.   

Wrapping Up

After considering all the facts and figures related to Ethereum and Ethereum 2.0, we can clearly say that in the war of Ethereum vs Ethereum 2.0: Will ETH 2 Replace Ethereum Classic?, ETH 2 is the winner. 

New Ethereum updates have made the crypto market more strong. The modification in the consensus mechanism proposes transparency, scalability, and enhanced security on the network. It will be a remunerative deal for enterprises and individuals. 

Moreover, if you are finding a reliable partner to work on Ethereum-based projects or need any suggestions related to Blockchain-related projects, connect with the best Blockchain company (Infrablok).

Frequently Asked Questions (FAQs)

 

Ques 1. What are the 3 Phases of Ethereum 2.0?

Ans 1. Ethereum 2.0 is planned to be launched in 3 phases:   

0 Phase: Beacon Chain 

1 Phase: The Merge 

2 Phase: Sharding 

Ques 2. What is Sharding? 

Ans 2. Sharding is the procedure in which one Blockchain diverges into different Blockchains. Therefore, one network works as a particular validator. Instead of executing all transactions via a single Blockchain, it can be done across various side chains. It makes the process more energy-efficient.