Ethereum 2.0 is an upgrade of the Ethereum network, ushering their move to a purer proof of stake (PoS) consensus model, which is more decentralized. Through the Beacon Chain, Ethereum 2.0’s PoS chain launched in December 2020, the network will be able to establish a new system that will address its problems of scalability, gas fees, and transaction speed.
The Beacon Chain will enable a sharding mechanism designed to distribute information to several, independent datasets in order to increase the capacity of the chain to process transactions exponentially faster (predicted to go as high as 100,000 tps).
Another innovation brought by Ethereum 2.0 is the introduction of a staking feature, which would allow ETH holders to lock their tokens in smart contracts and participate in block validation.