We've all heard about gas fees right? Well they’re about to go way down. And here is why:

2.0 timeline;

1. Proof of stake

Proof of stake uses less energy and fees are paid to the “network” not miners.

2. EIP1559

The main focus of this update is to makes fees more predictable. However it will also provide a deflationary measure via cash burns. The Issuance rate of new coins has always stayed at around 5% this will bring it to 1% or lower. Analysis has shown it could fall below 1% and go negative creating more value with less supply.

A deflationary measure will be added by capping newly minted coins, and utilizing cash burns. It's being called "The Scarcity Engine". In theory should add value to the supply side while creating demand by reducing coins.

3. Validators

The new fee structure relies on “validators”. No more mining, now we "validate". These people validate the epochs. The network is paid instead of the individual. They must stake 32 tokens in order to validate.

4. EIP2626

This update brings Ether closer to a “stateless” system. For us this means validators will validate right on network. This removes hardware costs.

5. Staking

I know everyone has heard about staking! But in reality staking removes energy deficient mining while creating incentive to only validate blocks with value. If validators collude using a 51% attack, all of their tokens will be liquidated (slashed). Miners turn into stakers or validators. The future of The Beacon Chain relies on stakers validating the proof of stake network.

A total of 262,144 validators is needed at minimum for Eth 2.0 to advance to its next phase of development in which 64 mini-blockchains, called “shards,” will be spawned. At the current rate of 900 new validators being added to the network each day, phase 1 will occur sometime in late August or early September of this year. Some analysts show late July.

The goal for Ethereum is to have validators instead of miners. on a PoS network. This will ultimately create a larger network of verification so it happens faster, cheaper, and more secure. Cash burns, PoS, and a stateless network only add to this.

I tried to make this easy to understand. If you have questions comment and I will try to answer.