Mika
VIP Contributor
Ethereum was originally created as Proof of Work Consensus mechanism. Proof of Works means miners have to validate your transaction. Energy consumption is very high in this mechanism, which is one of the main reasons why some people hate crypto.
Ethereum Foundation later created ETH 2.0 which was based on Proof of Stake consensus mechanism. In this method, transactions will be validated through staking.
ETH Merge ended Proof of Work and now ETH is basically Proof of Stake.
Proof of Stake also allows you to earn staking rewards.
Sadly, the condition Ethereum Foundation has set requires you to have 32 ETH before you can stake. This implies that you need at least $50,000 (at the current price) worth of ETH before you can stake.
Centralized Exchanges are trying to take benefit of this situation by offering Staking Pool. This will allow the Exchanges to control most of the ETH in the market. You will not be in control of your ETH.
Ethereum Foundation later created ETH 2.0 which was based on Proof of Stake consensus mechanism. In this method, transactions will be validated through staking.
ETH Merge ended Proof of Work and now ETH is basically Proof of Stake.
Proof of Stake also allows you to earn staking rewards.
Sadly, the condition Ethereum Foundation has set requires you to have 32 ETH before you can stake. This implies that you need at least $50,000 (at the current price) worth of ETH before you can stake.
Centralized Exchanges are trying to take benefit of this situation by offering Staking Pool. This will allow the Exchanges to control most of the ETH in the market. You will not be in control of your ETH.