In this video, you will learn what you need to do when ETH 2.0 comes out. If you own some eth 1.0 now this is a video response to a question that Camilio Tapia asked and he asked the following question
Hey, does anyone know and mind explaining what I’m supposed to do it? When ETH 2.0 comes out, if I on some ETH, will my current ETH be old and become useless? Does it automatically exchange ETH 2.0? I’m confused and have a hard time finding the answer online. If you are in the same situation and are not too sure what’s going to happen. Then stay tuned as I’ll try and answer this question to the best of my abilities. Thanks a lot Camilio Tapia for this great question let’s dive right into it. So what happens to ETH 1.0 Went ETH 2.0 comes out.
Once phase zero is complete, there will be two active ethereum chains.
You’ve got the ETH 1.0 proof of work chain and ETH 2.0 the proof of stake chain during this phase users can become validators by staking 32 Ethereum.
They need to send their ETH 1.0 To the ETH 2.0 chain and at the moment this is a one way bridge with no way to migrate this ethereum back in current proposal is that in phase two all the transactions and the state of the current ETH 1.0 chain will be transferred into a shard on that ETH 2.0 chain.
Ethereum 2.0 is introducing, sharding, it sounds very complex but it’s actually not that difficult of a concept. So sharding is basically ethereum 2.0 will be split up into multiple data layers.
Each of these data layers is called a shard. It has its own unique set of account balances and smart contracts. The idea is that in phase two of the ethereum 2.0 roadmap, ethereum 1.0 will be transferred in its entirety old transactions and state into a shard on the ETH 2.0 chain.
Now I want to quote Danny Ryan an ethereum developer –
so once the state execution layer is in the new 1024 shards, users will be able to transfer ETH directly to the shards from the proof of work chain. In the longterm the plan is to roll with a proof of work chain into one of the shards one of these data layers like this here which will contain the whole of ethereum 1.0 proof of work chain.
You do not need to worry about your ethereum 1.0 becoming old and useless so you can either become a validator and stake ethereum or you can do nothing and just hold onto your ethereum 1.0 until it’s fully integrated into ETH 2.0.
I want to thank Camilo Tapia again for this great question. I’m super pumped about what 2020 is going to bring us. I’ve got a lot of exciting videos aligned and set up for the next few weeks, few months, talking about ethereum, decentralized finance, Bitcoin, and many other blockchain related topics. Do you have any questions then feel free to ask them down below. I do my best to answer each and every question that you have and as always, I wish you a great day. Fantastic week. I will see you in the next video. Bye Bye