As is traditional, let’s start with an explanation. The Ethereum 2.0 update has two main components. First of all, it is the conversion of the blockchain to the Proof-of-Stake consensus algorithm from the current Proof-of-Work. By doing so, the network will consume much less electricity and become more environmentally friendly.

The second part is the implementation of sharding, that is, dividing the network into separate, interconnected parts, which will ultimately increase the capacity of the overall blockchain. In the first phase, it is planned to implement 64 shards, which will increase the speed of the network by a corresponding number of times. Read more about this technical solution in a separate article.

When will Etherium move to Proof-of-Stake

According to Decrypt’s sources, last month developers working on the so-called merger or consolidation of the current Ethereum network and its PoS version began testing the prospects of the network moving to a “shadow fork”. A little later, Ethereum Foundation developer Tim Beiko tweeted about some difficulties, so the final update has been pushed back to the second half of 2022.

Suggestion for code changes on GitHub

The final transition to Ethereum 2.0 will mean the end of mining on the Ethereum network using video cards. Miners would be replaced by validators, who do the stacking to validate and secure the network, and receive a reward in ETH for doing so. Such changes are expected to drastically reduce the amount of electricity consumed by the Etherium blockchain.

It would also reduce the issuance of new ETH by around 90 percent, which many analysts believe could lead to a marked increase in the coin’s price amid falling supply. At the very least, there will be significantly less new ETH in circulation.

In addition, in preparation for a major network upgrade, Ethereum Foundation representatives have increased rewards under its bug fixing programme, launched in 2021. The programme offers payouts on a tiered system, with the highest rewards available for identifying critical vulnerabilities that have a potentially high impact on the network.

Etherium creator Vitalik Buterin

Bug hunters can now earn up to $250,000, paid in ETH or DAI, for detecting vulnerabilities that fall within the program’s scope. The program has increased the payout from $50,000 to ensure that the merger does not introduce vulnerabilities into the network, which hosts billions of dollars worth of transactions every day.

It should be noted that the developers of Etherium also touched on the topic of moving to a consensus algorithm Proof of Ownership and the core network. The information was commented on by project developer Preston Van Loon during the current blockchain conference called Permissionless. Here’s his quote, cited by Decrypt.

As far as I know, if everything goes according to plan, it will happen in August. In that case, we won’t have to postpone the difficulty bomb, so let’s do it as soon as possible.

As a reminder, the complexity bomb is a mechanism for gradually increasing the complexity of Etherium mining, which is designed to accelerate the transition to PoS. It increases the complexity of ETH mining, causing the network to run slower and eventually freeze. That way, the developers should have had a reason to update the blockchain more quickly. In the end, though, the bomb was simply postponed several times.

Here is a recording of part of the event where this prediction was announced.


It is important to note that the transfer of Etherium to Proof of Ownership has been planned since the blockchain launch, but it ends up taking much longer. For example, the launch of the so-called zero phase of the revamped Ethics blockchain took place as early as the first of December 2020.

The slowness of the process is due in part to the scale of the current blockchain. Even today - taking into account the collapse of the cryptocurrency market - the market capitalisation of Etherium is $247 billion, which is a huge figure. Given the amount investors are investing, it's important for developers to make sure the transition is smooth and efficient.

Anyway, until the update happens, we recommend to mine ETH on 2Miners pool. Firstly, it’s profitable and secondly, you can mine crypto with one video card.

Cryptocurrency miner


We note that these timelines are given for an ideal situation, i.e. in the absence of any significant bugs. Therefore, there is a possibility that the final transition of the blockchain to the second cryptocurrency by market capitalisation will take place later. And until that happens, it makes sense to think about starting to mine ETH with video cards, as it is one of the most profitable coins right now.

What do you think about what is happening? Share your opinion in our Millionaire Cryptochat, where we discuss a lot of industry-related topics.