Ethereum 2.0 (ETH2) is a major upgrade to the Ethereum network, designed to enhance security, speed, and efficiency. Implemented in September 2022, it merged the original blockchain with the ETH2 blockchain.

Why was Ethereum 2.0 necessary?
Migrating a major cryptocurrency to a new platform is complex, but essential for Ethereum’s growth. The Proof of Work (PoW) mechanism used in ETH 1.0 created bottlenecks, driving up fees and consuming excessive resources (especially electricity).

What is Proof of Work?
Cryptocurrency networks rely on consensus mechanisms to prevent double-spending without intermediaries like Visa or PayPal. ETH 1.0 adopted Bitcoin’s PoW, which requires massive computational power.

Global "miners" compete to solve complex math puzzles. The winner updates the blockchain with verified transactions and earns ETH rewards.

This process occurs every 30 seconds (vs. Bitcoin’s ~10 minutes). As traffic grew, PoW’s limitations led to unpredictable fee spikes and congestion.