OneKey Support Center

What is ETH staking?

KK
KK
  • Updated

Ethereum’s demand and the number of transactions have scaled so rapidly that its existing architecture is unable to manage the load appropriately.

To make the network more scalable,Ethereum is transitioning to Ethereum 2.0, which will replace the proof-of-work protocol withproof-of-stake (PoS).

Proof of Work (PoW)

Proof of Work (PoW) is a mining process. Users install powerful computers or mining equipment to solve complex mathematical problems. Once various transactions are successfully calculated, verified transactions will be It is stored in a distributed ledger or a new block on the public chain, and mining verifies the legitimacy of the transaction and creates a new currency unit.

Proof of Stake (PoS)

PoS requires users to own a certain amount of cryptocurrency, the creator of a new block is chosen in a pseudo-random way, depending on the tokens the user has, also known as “equity”, the amount of ETH you own determine whether you can become a validator node, and the number of nodes determines the income you can get from PoS mining.

What is the yield of ETH 2.0 Staking?

The yield of ETH 2.0 Staking depends on the total staked amount of ETH in the entire network, and the yield is inversely proportional to the staked amount. Earnings in different scenarios can be simulated with the Ethereum 2.0 Rewards Calculator

What is ETH staking? Why should I stake ETH?
The process of providing verification for Ethereum 2.0 to maintain network operation and security and obtain rewards by depositing 32 ETH tokens to become a validator node and staking to lock the position is the process of ETH 2.0 Satking.

According to the upgrade plan of the Ethereum network, Ethereum will gradually change from PoW to PoS, and the existing way of mining through physical mining machines will be gradually weakened to obsolete. If you want to continue to maintain the Ethereum network through mining and get tokens For rewards, you should participate in the ETH 2.0 Staking. 

Disclaimer: Exchange, lend, and other crypto transaction services are provided by third-party partners. OneKey provides no advice or recommendations on use of these third-party services.

 

Was this article helpful?

0 out of 0 found this helpful

Have more questions? Submit a request

Comments

0 comments

Please sign in to leave a comment.