Ethereum 2.0 - The main changes of the upcoming update

Eth 2.0 is a set of successive technical updates (upgrades) designed to make Ethereum faster, more efficient, and more cost-effective. The process began on December 1, 2020 with the launch of the Beacon Chain network.

The main changes are as follows:

• Switching from Proof-of-Work to Proof-of-Stake. Instead of inefficient mining, a stacking system is introduced: network members stack (freeze) ETH and get to confirm transactions. For this, they receive a staking fee of up to 16%-20% per annum. According to Vitalik Buterin, the introduction of Proof-of-Stake will reduce the network's energy consumption by 1000 times.
  
  Staking has already been launched in test mode in the Beacon Chain network: as of July 2021, over 200,000 validators have joined it, and the amount deposited on the contract has reached $14 billion in ETH. The minimum steak size is 32 ETH, which is about $100,000, but you can invest a much smaller amount in a special pool. One of the simplest ways to purchase ETH is SimpleSwap. True, you can't take ether out of the steaking pool until Eth 2.0 is fully launched.
   
• Sharding. The essence of sharding is that a single blockchain is split into a large number of independent subchains, each with its own applications and transactions. You could say that each chain (shard) has a life of its own, but they share a common structure that allows the shards to exchange data. They do not compete for network resources; consequently, the network can run dozens of times faster. A total of 64 shards are planned to be launched.

The Ethereum network upgrade will improve its technical characteristics, namely making transactions faster and cheaper, as well as more secure from centralization. On top of that, it will be possible to earn passive income for storing the cryptocurrency. This will help it occupy a leading position in the crypto market and compete with other tokens that have already implemented the stacking function.

Most experts agree that Ethereum's price may rise thanks to the update, so  right now is the best time to buy crypto. On the one hand, altcoin will rise in price as it will become a more attractive investment. On the other hand, the supply will decrease, as some of the coins will be blocked for stacking.