Ethereum 2.0 will eliminate waste, specialized hardware: Co-founder Joseph Lubin

While most cryptocurrency ecosystems have started upgrading their blockchain services to improve their tokens’ use cases, Joseph Lubin, Co-founder of Ethereum and founder of ConsenSys, featured on the Fintech Beat podcast to share details about the Ethereum 2.0 ecosystem and how it may place itself within the existing financial system. He started by pointing out,

“Ethereum 2.0 just brings greater capacity to the Ethereum platform. Ethereum 1.0 doesn’t have the privacy and the confidentiality that we would like to see it have and it doesn’t have the scalability that we need in order to make more use of the system.”

Lubin also highlighted that an upgrade to Ethereum 2.0 stands as an opportunity to “drastically increase scalability and the number of transactions per second in the system.” Additionally, the entrepreneur agreed that the company’s pioneering proof of stake system does not directly solve scalability issues, “although it does facilitate us (Ethereum ecosystem) in solving the scalability issue. He clarified,

“Bitcoin and the Ethereum network both make use of proof of work, and Ethereum is about to move to a Ethereum 2.0, which transitions to proof of stake. So, instead of all of that waste and specialized hardware, we replace that with an economic bond.”

Diving into the specifics, Lubin explained how users can leverage Ether to stake or bond smart contracts on the Ethereum platform, which allows them “to receive compensation from the protocol for doing the work of validating transactions and validating blocks on the Ethereum 2.0 network.”

Moreover, Lubin claimed that this process is more efficient as the general public will have a much lower barrier to make use of in such a system.