Ethereum Leaves ETH 2.0 In The Past In New Roadmap Rebrand

Ethereum 2.0 is one of the most-anticipated upgrades in crypto presently. The upgrade which will bring better scalability and cheaper prices to the network is nothing short of needed given that demand has driven these two things to its brink on the network. This is why Ethereum developers have been hard at work for two years trying to usher in this new era.

However, it seems that the name ETH 2.0 is no longer doing justice to the upgrades being performed on the network. In a recent announcement, Ethereum Foundation announced that it is retiring the name ETH 2.0 in favor of something that better describes the work being done on the network.

ETH 2.0 Is Now Consensus Layer

In a blog post on its official website, the Ethereum Foundation announced its decision to change the name of the upcoming upgrade from ETH 2.0 to the “Consensus layer”. The post explains that the reason for this was the need for terminology that clearly embodies the changes that were being made to the network.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

ETH 2.0 had worked while at the beginning when the goal was simply to move users from the present proof of work chain, also known as ETH 1.0, to the new proof of stake mechanism. The goal has changed drastically since then.

Related Reading | Ethereum Fee Averages Remain Above $30 Despite 35% Drop. Price Pump Incoming?

For the total completion of the upgrade, developers had discovered that it would take several years to complete. Additionally, the upgrade had evolved at various points to make changes focused on the long-term rather than just moving to the proof of stake mechanism.

Get 110 USDT Futures Bonus for FREE!

Ethereum price chart from

ETH climbs back to $2,400 | Source: ETHUSD on

The new terminology provides a better understanding of what is being done on the network. This way, users are no longer confused when it comes to distinguishing between the two. This would greatly reduce scams that take advantage of the confusion generated by the terminology by asking them to swap their ETH for ‘ETH2’. It would also clear up the confusion that arises with staking, where stakers might believe they might be getting ‘ETH2’ tokens and not ETH tokens.

How Is Ethereum Price Affected?

The announcement of the new terminology has had no bearing on the value of the altcoin in the market. Ethereum which had suffered greatly in the crash, losing about 40% of its value, has trended upward in the last day. However, the change in value remains insignificant as ETH is still a long way away from hitting the $3,000 point. Prompting users to speculate that the bear market is here.

Related Reading | Market May Be Suffering But Bitcoin And Ethereum Will Pull Back Stronger, Bloomberg Analyst

As for ETH 2.0, now known as the “Consensus layer”, it is still unknown if the scheduled merge will actually take place this year. The project has so far been rocked by delays as devs encounter new issues. But for now, the upgrade remains on track.

As per the announcement, the ethereum base layer, also known as ETH1, will now be called the execution layer. While ETH 2.0 will be referred to as the consensus layer. Both of these layers combined are what make up the Ethereum blockchain.

Featured image from Forkast, chart from


Tagged : / / / / / / /

Ethereum Foundation Rebrands ETH 2.0 to Consensus Layer, Breaking Broken Mental Model to Users

With the evolution of the Ethereum roadmap, ETH 2.0 has emerged as an inaccurate representation, and this has necessitated its rebranding so that a broader audience can comprehend its content. 

The Ethereum Foundation explained:

“One major problem with the ETH2 branding is that it creates a broken mental model for new users of Ethereum. They intuitively think that ETH1 comes first and ETH2 comes after. Or that ETH1 ceases to exist once ETH2 exists. Neither of these is true.”

The advancement of the Ethereum network calls for more measures beyond protocol development, like a critical shift in terminologies used, according to the Ethereum Foundation. 

As a result, Ethereum 1.0 will be renamed as “the execution layer”, whereas Ethereum 2.0 will change to the “consensus layer”. Therefore, Ethereum will be made up of the execution and consensus layers.

Furthermore, rebranding is expected to keep bad actors at bay. Per the announcement:

“Unfortunately, malicious actors have attempted to use the ETH2 misnomer to scam users by telling them to swap their ETH for ‘ETH2’ tokens … we hope this updated terminology will bring clarity to eliminate this scam vector and help make the ecosystem safer.”

With the merge of the two layers slated for Q2 2022, a transition to the proof of stake (PoS) consensus mechanism is expected, deemed more environmentally friendly and cost-effective. 


Ethereum's upgrade path

Source: The Ethereum Foundation

The shift is also anticipated to prompt a 1% annual deflation rate, according to research by crypto service provider LuckyHash. The study noted:

“When the quantity of pledge exceeds 100 million, the annual issuance rate will stabilize at 1.71%, that is, the average daily output is about 5600. If by then the upgraded Ethereum can maintain the current burn volume, it can achieve 1% deflation every year.”

Ethereum edged Visa in terms of trading volume in 2021 by hitting $11.6 trillion.  

Meanwhile, ETH regained some momentum by up 0.1% in the last 24 hours, hitting $2,385 during intraday trading after plugging to a 6-months low, according to CoinGecko.

Image source: Shutterstock


Tagged : / / / / /
Bitcoin (BTC) $ 26,293.04 0.82%
Ethereum (ETH) $ 1,587.87 0.12%
Litecoin (LTC) $ 64.28 0.10%
Bitcoin Cash (BCH) $ 210.17 1.26%