Ethereum 2.0: The Paradigm Shift from PoW to PoS
After Ethereum completed the Merge, the consensus mechanism shifted from Proof of Work (PoW) to Proof of Stake (PoS), reducing energy consumption by over 99%. This upgrade not only enhances the sustainability of the network but also provides holders with an annual yield of 4%-6% through staking. However, concerns about centralization risks have arisen — the top three staking platforms (Lido, Coinbase, Kraken) control over 30% of staked ETH. In the future, whether sharding technology can achieve true decentralization and high TPS will be crucial for the development of the Ethereum ecosystem.