Ethereum 2.0 staking address exceeds $20 billion in deposits – Money Times

Ethereum 2.0 aims to abandon the mining process and make the network lighter and more agile for its countless users (Image: Unsplash/Executium)

Now the staking address gives Ethereum 2.0 — which consists of deposits in ether (ETH) to legitimize the commitment of users and validators to the network Ethereum — exceeded 6.8 million ethers (or US$ 22 billion).

(Image: EtherScan)

According to decrypt, the increasing volume of ether staking signals users’ confidence in the developers of the much anticipated Ethereum 2.0 update.

The update will result in the merger between the current network. blockchain Ethereum (or ETH 1.0), which depends on the consensus algorithm proof-of-work (PoW), which operates on behalf of the mining process, and the future ETH 2.0 network, which depends on the algorithm proof-of-stake (PoS), which will depend on these “locked” funds on the platform and the participation of validators.

ETH 2.0’s deposit address blocks the applied funds, which will only be released when the merger takes place — some estimate that it will happen in 2022, although this is difficult to predict as several tests need to be carried out before the update is integrated into the core network. .

EscolaCripto: the importance of the Ethereum network

The more than US$ 22 billion in ether surpassed the amount of “wrapped Ethereum” (wETH), according to data from the analysis company in blockchain Nansen.

wETH are a tokenized version of ether which allows for greater compatibility of use in trading and lending services in the decentralized finance (DeFi), in addition to having 1:1 parity with ether.

32 ETH (about $102,000) is the minimum requirement to become a validator and operate an Ethereum 2.0 node.

However, through companies staking-as-a-service (SaaS) and centralized brokers, investors can join forces and reach that limit, guaranteeing network security and reaping rewards, recalls Decrypt.

“Unknown” can refer to the thousands of people who have ether staking in the deposit contract (Image: Nansen)

According to Nansen data, the largest amount of ethers in staking by large entities is deposited at the broker Kraken (820,444 ETH), followed by the SaaS company Read Finance (762,272 ETH) and the global broker Binance (588,608 ETH).

At this moment, ether, the second largest cryptocurrency on the market, is being traded at US$ 3.2 thousand (or BRL 17.1 thousand).

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