Value deposited in Ethereum 2.0 reaches US$ 21 billion
The 2.0 staking has now reached 6.73 million euros, valued at around $21.2 billion, a big step forward in the long-awaited update, according to data from blockchain analyst Nansen.
The increasing volume of ETH staked signals confidence among Ethereum users in the developers’ ability to deliver the long-awaited update of the 2.0 network, when Ethereum’s current Proof of Work blockchain “merges” with the Proof of Stake chain.
Unlike most other staked cryptocurrencies, the staked ETH remains locked, the merger is expected to take place in early 2022.
Ethereum, like , is currently working on a blockchain mechanism called Proof of Work, which relies on energy and computational expenditure to validate transactions and bring security to the network.
Mining is a lucrative business for big investors and companies that can afford high-tech hardware and industrial facilities, but it is less affordable for common users.
The stake, an alternative to mining, can change that. This refers to betting coins for a blockchain network and participating in the transaction verification task. To ensure the functioning of the Proof of Bet network, stakers receive newly minted coins as a reward, as do miners. There is typically a minimum requirement of 32 ETH, around $102,000 in today’s prices, to become a validator and run an ETH 2.0 node.
However, through staking-as-a-service and exchanges companies, stakers are able to pool assets to reach this threshold to participate in the protection of the new network and earn rewards.
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