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Ethereum or ETH is the second-most popular cryptocurrency in the highly volatile cryptocurrency market with the first one to introduce smart contracts. It has decided to launch Ethereum 2.0 for improving the faults of Ethereum's first version for a better experience for crypto investors in the cryptocurrency market. But there are multiple concerns regarding Ethereum 2.0. blockchain trilemma, and the drastic impact on the decentralized platform of ETH.
Ethereum will shift from the present status of Proof-of-Work method to depend on validators more than cryptocurrency miners. It will help to validate cryptocurrency transactions on the Ethereum blockchain. Ethereum 2.0 is showing the centralized block production but the block validation is a highly decentralized platform for smart contracts. It has been speculated that the decentralization platform of block production will not last long with the probability of gaining cross-domain MEV.
It is important for ETH developers to have a deep understanding of the different levels of the decentralized platform in block production that can be achievable. Ethereum 2.0 is built on the greener and more scalable Proof-of-Stake consensus mechanism to reach 100,000 transactions per second efficiently and effectively.
For this smart contract producer, it is crucial to have efficient block speeds for cryptocurrency payments with the utmost security. ETH is concerned with the blockchain trilemma because the issue is with the three key features of a public blockchain — decentralized platform, security, and scalability.
Ethereum 2.0 holds the potential of blockchain trilemma because if there are more nodes, the blockchain will become a more decentralized platform with utmost security. Meanwhile, it will take a longer time to reach high stability. Whereas, the increasing decentralization and scalability will lead to a decrease in the better standard of security. But if they put more focus on security and scalability, the blockchain will be more centralized instead of the decentralized platform.
The current issue is that Proof-of-Work blockchain needs to sacrifice scalability whereas the Proof-of-Stake blockchain provides less security, but higher scalability to cryptocurrency transactions. Crypto investors must wait and see the solution to the blockchain trilemma to maintain the decentralized platform in the highly volatile cryptocurrency market. Till now, for ETH 2.0, it is not a viable option to go centralized for achieving the highest level of speed as well as scalability.
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