Popular Science: Ethereum 2.0 Mortgage
Editor's Note: This article comes fromCointelegraph Chinese (ID: CointelegraphChina)Cointelegraph Chinese (ID: CointelegraphChina)
Cointelegraph Chinese (ID: CointelegraphChina)
, Author: Nikolai Kuznetsov, reprinted with authorization by Odaily.ETHsecondary title
What is Ethereum 2.0 Mortgage?
) to participate in the network and get rewarded.
related articles:
Proof-of-Stake Vs Proof-of-Work: Which Is "Fairer"?PoSsecondary title
What is Proof of StakePoWProof of Stake (BTC) is a consensus mechanism used by some blockchains.
PoS gives those who hold network tokens the right to validate blocks to earn rewards. This is the same as Proof of Work (
) consensus model used. PoW assigns block confirmation authority to those miners who demonstrate the most computing power.
Once a validator agrees to stake their tokens, the stake is locked. In many cases, if validators do not act in the interest of the network (intentionally or not), all or part of their stake will be forfeited.
In principle, anyone can stake tokens. But in practice, a protocol will be used to determine which participants are selected to validate blocks and earn staking rewards. The right to validate blocks and receive rewards is usually assigned based on the proportional value of the stake. So if someone stakes 1% of the total market cap of a token, he can validate 1% of all blocks. However, the length of time a stake is locked may also affect the validator selection protocol.
secondary title
Why does Ethereum 2.0 implement PoS?
Ethereum seeks to decentralize and accelerate the network.2.0Ethereum core developers are very much in favor of decentralization, suggesting another reason to move to PoS. Mining of the largest cryptocurrencies, including bitcoin and ethereum, has become heavily reliant on a handful of large mining pools in recent years as competition to develop faster and more sophisticated mining hardware.
related articles:It will also involve the implementation of sharding, a technique for faster throughput.
related articles:
Everything PoS Blockchains: An Overview of Crypto Collateral Networks
secondary title
How does staking work on Ethereum 2.0?4%–10%Staking on Ethereum 2.0 will be very simple. The minimum threshold to participate in staking is 32 ETH, and validators will need to run a validator node. As mentioned, this doesn't require a specialized machine, but can be done on a consumer-grade computer or laptop. However, validators will always remain online or face minor penalties.
The rate of return on staking ETH is expected to be approximately
. . The "slash" mechanism will apply to any validator, and validators who conduct malicious attacks on the network will have part of their deposits slashed.
secondary titleXTZComparing Ethereum 2.0 to other PoS platforms
Several other large blockchains, including Tezos, Algorand, and Qtum, are already implementing proof-of-stake consensus mechanisms.
Tezos runs a staking process under its "Liquid Proof-of-Stake" algorithm, which is a hybrid of pure Proof-of-Stake (pure PoS) and Delegated Proof-of-Stake (DPoS). Validating blocks in the Tezos network is called "baking". Holding Tezos (
) tokens can delegate their tokens to a validator to "baking" on their behalf, but the original owner keeps their tokens in their own wallet. If they have 8000 or more XTZ tokens, they can participate as a baker and run a validator node. Currently, the return on staking on Tezos is around 7%.EOS、CosmosLikewise, Qtum also runs on a pure PoS consensus protocol, where anyone holding a small fraction of Qtum tokens can become a validator and compete for block rewards. The project has implemented native applications to make it easier for everyday users to participate in its staking program, and also provides command line options for more technical users. Staking on Qtum earns about 7% returns per year. There is no minimum stake, but holding more tokens increases the chances of being selected to validate and process transactions in the network.
There are also many blockchains running staking programs, including
wait. Many of these are variants of standard PoS consensus protocols, such as DPoS.
secondary title
What is a collateral pool?
Staking pools are run by pool operators. Exchanges such as Binance, Crypto.com, and Kraken all run staking pool programs, where exchanges deposit user funds into a wallet that is then used for staking. However, there is also the opportunity to participate in staking pools based on tokens held in users' personal wallets (even cold wallets).
The advantage of staking pools is that they allow users to stake their cryptocurrency, giving them a better chance of being selected as a validator and earning staking rewards. On the other hand, the rewards are distributed across the pool of all participants, so their rewards are usually proportionally reduced.
Staking pools are also a good option to earn passive income through staking without requiring technical knowledge to set up validators in the network. Another advantage is that there is no need to lock up tokens for a defined period of time, which is a requirement for becoming a validator in many staking programs.
secondary title
What are the risks and benefits of staking?
Passive income and vulnerability to market changes.
