Similar to Bitcoin, the main Ethereum token has taken considerable hits during the current bearish period for the digital currency markets. Even though ETH has been able to recover near the $2,600 pricing level, there are strong doubts about this token's ability to build a strong support level.

Vitalik Buterin, founder of the Ethereum blockchain, recently spoke at a conference about ongoing network development and its future. One project that has been in the back burner for a while is Ethereum 2.0; this highly anticipated project promises to bring about many improvements to the world's most widely implemented cryptocurrency network. Among some of the features that have been mentioned, Ethereum 2.0 would include the following:

  • A new smart contract codebase plus a complete rewrite of the current interaction model.

  • The ability to build Ethereum projects on top of other protocols and programs. Ethereum Core developers will be able to build on top of different protocols and programs as need be, and this would include side chain projects that have been introduced by decentralized finance technologists.

  • Increased transparency for developers. Ethereum will continue to use existing code as much as possible.

  • Support for innovative ERC20 tokens. Ethereum will keep its own token, but future ERC20 tokens may include digital versions of fiat currencies. The Singapore dollar and Russian ruble have already been tested in this regard. This will allows for greater flexibility in use of ERC20 tokens.

Ethereum 2.0 plans to release its smart contracts software at some point in 2022. Herein lies the problem for traders who have been waiting for positive fundamental news because this release was supposed to have taken place in 2016.

What is Ethereum 2.0?

The official title for Ethereum 2.0 is ETH2, but we can also refer to it as 2.0. It represents the addition of a number of core features such as:

  • Transaction confirmation support.

  • Private networks and smart contracts will be able to connect on the Ethereum network.

  • New contract data format.

  • Enhanced and improved Proof-of-Stake (PoS) functionality for the benefit of token miners.