If you have always been interested in the cryptocurrency industry and seriously considering becoming a part of it — start staking! The job itself isn’t as complicated as it may sound at first. You just need to figure out how the system works, what are the costs and risks and how much you can make out of it. And this article will tell you all about it.

What Is Ethereum Staking?

Staking is the process of activating the software by depositing 32 ETH. And by doing that the users become validators. Validators add new blocks to the blockchain. They also take care of processing transactions and storing information. Validators are responsible for keeping Ethereum secure and they get paid for doing that in Ethers. Since the system’s security depends on decentralization, the more validators will join the network the better the platform’s security is. Having powerful software isn’t a strong requirement for staking as it was in the Proof-of-Work mechanism. Thus, the circle of validators expanded which is a huge benefit for Ethereum. You can check Ethscan for more info. This Ethereum search engine will help you understand what’s going on in Ethereum 2.0 network

Staking Pools

The staking pool allows staking any amount of virtual Ethereum money by joining other stakers. You don’t necessarily need to run your own node. You just can join the staking pool. This feature was implemented for those whose software isn’t powerful enough or for those who simply don’t have much money that can be spent on Ethereum. So how does it work? You deposit your ETH to the pool. The staking pool operators manage the technical sides of running the node. And that is basically it. Now you just need to wait to receive your profit. Pretty easy, right? Rocket pool is considered to be the best one on the market. It gives an opportunity to run a node for 16 ETH instead of 32 ETH and build your own staking pool by using rocket pool protocol.

Staking Costs and Risks

32 ETH is the entry charge to begin staking. After you fund this amount, you may start staking (or delegate your rights to the staking pool). Such a depositing system was created to ensure the decentralization of the network. If you follow all the rules of the platform, you will get rewards. Otherwise, you will be penalized. You can be fined if you do any malicious activity, fail to validate the blocks, and being offline. Different types of fees were applied to guarantee that the work of Ethereum will go smoothly and without interruption.

Staking Rewards

Validators get their rewards for helping the network reach consensus. The rewards are given every time validators batch transactions into a new block and check the work of other validators. In simple words, rewards are given for the safe running of the blockchain. You may receive up to 6% income on each ETH that you stake. If there is not much ETH staked, the rewards are bigger and vice versa.

Conclusion

Staking in Ethereum 2.0 is simple. It is accessible to almost everyone who is interested in the industry.

 

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