Ethereum 2.0, also known as ETH 2.0 or Serenity, is an upgrade to the existing Ethereum blockchain. It aims to improve scalability, security, and sustainability. One of the key features of Ethereum 2.0 is the transition from a proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS) system, which is more energy-efficient and scalable. This transition is taking place in multiple phases, with the final goal of achieving higher transaction throughput and reducing network congestion.

DeFi, short for Decentralized Finance, refers to a category of blockchain-based applications and smart contracts that aim to recreate traditional financial services (e.g., lending, borrowing, trading) in a decentralized, permissionless manner. DeFi has gained significant traction on the Ethereum blockchain due to its smart contract capabilities and large developer community. Ethereum's upgrade to ETH 2.0 is expected to further enhance DeFi by addressing scalability issues and reducing transaction fees, making it more accessible and efficient for users.

Overall, Ethereum 2.0 and DeFi are closely related, as the upgrade is expected to provide the necessary infrastructure for DeFi applications to continue growing and serving a broader user base.

#DeFiEthereum2.0 #DeFigoesMainstream

$ETH $UNI $CAKE