Ethereum 2.0 Staking is a kind of “savings account in a bank” that allows miners to lock their Ethers to participate in the transaction validation process and later claim the respective reward in their favor. It is an alternative to mining that requires fewer resources.

Its objective is to maintain sufficient funds in a cryptocurrency wallet to support the security of operations on the Blockchain network; in other words, Staking is the act of leaving blocked (employing a deposit) the cryptocurrencies to be able to receive rewards.

Ethereum Staking

The amount of ETH currently being staked has already exceeded 1,500,000 ETH, which was priced at more than $1 billion at the current price. This means that as stake deposits increase, simultaneously, the price of Ethereum also rises.

There has been evidence in deposits in recent weeks, to such an extent that they have doubled in the last 20 days. The massive entry of ETH means for the new system proposed for Ethereum 2.0, a step forward for the second most important cryptocurrency globally.

Phase 0 exceeds expectations

Phase 0 of Ethereum 2.0 (called Beacon) was launched on December 1, 2020. According to market figures, this phase 0 of Ethereum 2.0 became a reality because the network forcefully exceeded the minimum number of validators required to be activated. Later, the move from mining based on POW (proof of work) to POS (proof of stake) will be presented with improvements in scalability, security, and sustainability.

The Staking of 32 ETH was required to launch the validators, and different pools enabled participation in their validator for anyone through blocking of lower amounts. Until now, there is no deadline to participate in the betting system. After phase 0, the transition to other better phases such as Sharding will begin, completely replacing the previous Ethereum model.

What do you think about this topic? Have you heard of Ethereum staking?

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