Cryptocurrencies

Prepare Ethereum 2.0 (ETH) staking today – Cryptocurrencies

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Sometimes presented as an attempt to change the engine of a racing car, the future shift of Ethereum (ETH) from Proof of Work (PoW) architecture to Proof of Stake (PoS) said to be more virtuous, is causing the entire crypto industry to hold its breath.

At stake, nothing less than the sustainability on a market with a total capitalization of 52 billion dollars but above all the maintenance of foundations that support a large part of the ecosystem, well beyond the simple crypto-monetary value of the ‘ETH.

The imminent start of the Ethereum mutation is thus being scrutinized by the entire industry as the maneuver promises to be historic from every point of view. Investors are not left out and many are looking to anticipate the future turn, so as not to miss an operation that could prove to be very lucrative, and this despite the many challenges that will dot the road to Ethereum 2.0.

Today we recall the conditions and challenges of the operation. In addition, this is the perfect opportunity to find out how to best prepare yourself today in order to take advantage of the unprecedented investment and return mechanisms offered by the future Ethereum 2.0.

Warning : This sponsored article is offered to you in partnership with the company Feel Mining. Crypto investments are risky by nature, do your own research and invest only within the limits of your financial capacity. This article does not constitute an investment invitation.

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Ethereum, un pillar of the ecosystem

It is easy to agree, in 5 years, Ethereum has been able to meet a growing number of challenges, accompanying and promoting the growth of a significant part of the crypto continent and also inspiring a large number of new initiatives. It didn’t take long for some of them to be presented as “Ethereum-Killer ” because described as as efficient as the big brother, while being devoid of some of its original organic limitations.

Indeed, it will be recalled that even if Ethereum wished to push the potentials outlined by Bitcoin further, its blockchain infrastructure was largely inspired by the creation of Satoshi Nakamoto. We will obviously think of his so-called “Proof of Work ” (proof of work), the keystone of securing its decentralized network.

Very energy consuming, slow, even qualified as “overwhelmed”, The PoW model could represent today the ball able to send Ethereum by the fund, torpedoed by the ever increasing needs of new crypto practices. All this, without even mentioning the explosion in transaction costs caused by an ever-widening gap between the needs of the industry in terms of volume and speed and capacities – limited by nature – an infrastructure fundamentally designed in 2010 in a stammering context and light years away from current expectations and needs.

Qualities and limitations of Proof of Work

The so-called “Proof of Work“(Proof of work) is intrinsically associated with Bitcoin, and goes so far as to characterize how it works. It will be recalled that in a PoW mechanism, the security and the resilience of the blockchain are guaranteed by the energy and computing power made available to the network by the “miners”, the latter being encouraged to maintain the system in return for rewards in cryptocurrency (block rewards and transaction fees).

As we have seen, Ethereum was inspired by the PoW to forge its own value proposition, like many other crypto currencies moreover (all Bitcoin forks including Bitcoin Cash (BCH) or Bitcoin Satoshi Vision (BSV)). However, if the PoW protocol drives several heavyweights in the sector, its great qualities as well as its most annoying flaws are well known.

PoW qualities:

  • Security and resilience important from an infrastructural point of view
  • Open and democratic protocol (limited entry barrier, anyone can enter and leave the network without significant constraints)
  • Transparency and auditability
  • Distribution and decentralization (from a certain critical mass)
  • Financially enough incentive for minors

PoW faults

  • very energy consuming
  • ecologically complex to justify (although the most recent studies show that most of the energy that allows Bitcoin to operate is from renewable sources, far from the image of “ecological monster” that we like to attribute to it)
  • Slow regarding transaction validation (4 / secs for Bitcoin, 15 for Ethereum).

Complex to secure below a certain size (51% increased risk of attack)

Focus on Proof of Stake and its champions

In total break with the Proof of Work, the Proof of Stake (or Proof of Stake, and its many derivatives) is an approach most often favored by new emerging blockchain models. For a riot of computing power and work, it thus substitutes an approach by a form of proof of possession: the holders of a crypto-asset agree to participate in the operation and security of the network by locking a certain amount of assets, in the form of a bail (or collateral).

On paper, the effects of this approach are virtuous. In addition to allowing a colossal speed and number of simultaneous transactions (several tens or even hundreds of thousands of operations per second depending on the project), the PoS is energy efficient and a large flexibility. On the other hand, the need to invest and deploy sophisticated mining equipment, it replaces the obligation to have potentially large funds in assets to participate in the smooth running of the infrastructure, this constituting a form of barrier to the entry, impassable for many.

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In game, the possibility of obtaining rewards (or dividends) in return for securing the network, an incentive system which tends to spread and is the bright spot for investors in “Masternodes”, These essential cogs of the PoS blockchain.

Among the major competitors in this strategic field, we can cite Tezos (XTZ), EOS or Cardano (ADA) and Avalanche (AVAX) all strong competitors of Ethereum.

On the road to Ethereum 2.0

Touching a cog in Ethereum means interacting very directly with an ecosystem that extends well beyond its simple native blockchain to impact thousands of ERC-20 tokens (the standard for Ethereum tokens), but also complex ecosystems that are intrinsically linked to the good functioning of the main network.

For this reason, the transition to Ethereum 2.0 will be done in cautious stages, according to a very carefully considered timetable. Thus, in a few days will begin “phase 0”, called Beacon Chain. This decisive step is supposed to allow the start of a purely PoS version of Ethereum, via the generation of a block “Genesis”, The first link in the new chain.

To allow this firing, however, Beacon Chain is supposed to wait until it has been joined by a total of 16,384 validators, who will each accept to lock 32 ETH (a little over 12,000 euros at the current price). To set an example, Ethereum creator Vitalik Buterin himself has delegated 3,200 ETH to the network. The minimum threshold is supposed to be reached before December 1st. Otherwise, Beacon Chain will start one week after the minimum thresholds have been reached.

The real phase 1 is baptized Shard chains. It is supposed to be deployed during 2021. This phase concerns the deployment of multiple parallel chains, making the Ethereum blockchain more scalable. At the end of this phase, the Ethereum network is expected to support up to 100,000 transactions per second.

Phase 2 will be called EWASM and will replace the current Ethereum virtual machine (the very one that allows the execution of smart contracts) with a more powerful one that allows even greater scalability and acceptance of new programming languages.

It should be remembered that until the finalization of the EWASM phase, the current version of Ethereum will continue to operate normally. Furthermore, ETH holders do not a priori have to worry about losing their assets, as the transition is supposed to be transparent for users. Finally, the most reasonable projections leave foresee a transition of more than 2 years before this Ethereum mutation, enough time for the ecosystem to adapt, especially for current Ethereum miners.

Tomorrow is getting ready today

Either way, the emergence of Ethereum staking is now just a matter of time, a short time since the deposit of the collateral necessary for staking (32 ETH therefore), as we have seen, has been open for a few weeks. You can also follow the progress of this race for Ether on the dedicated smart contract (as of November 19, the number of ETH deposited is close to 105,000, or about 20% of the target).

With all of these elements in mind, it is perfectly possible that you will be seized with the irrepressible desire to join the adventure. Either it seems essential to you to go down in history and experience a thrill (a little) similar to that of the first Bitcoin miners in 2009-2010 or more prosaically you are interested in the process as an investor.

However, the operation can easily turn out to be complex or intimidating for the individual.

Indeed, in addition to the substantial amount of Ethereum to be locked in the smart contract, it should be noted that the funds deposited in the contract will be immobilized until the full deployment of Ethereum 2.0, in other words, for at least 2 years, this “at less ”to be perfectly understood in all its uncertainties.

Moreover, even if the team is as credible as it can be in the industry, it will be recalled that a large part of the crypto ecosystem is sailing in full sight. terra incognita (which is a big part of its charm!). In short, this is a good time to remember that large gains necessarily come with risk taking.

In this context, it is therefore never useless to bring community and cooperation into play, as well as knowing how to surround yourself with solid partners. The perfect transition to talk about Feel Mining, which has obviously been active behind the scenes for a while now to be able to offer Ethereum staking to its community as soon as it is released. It’s hard to know if Vitalik is really ready, which is certain is that Chloe and her team are already in the starting blocks!

Ethereum 2.0 staking at Feel Mining

As often, it is Chloe, the dynamic CEO of the Grenoble-based company specializing in Bitcoin mining and masternodes, which is at the forefront of offering this service as soon as possible, which many people expect:

“The release of Ethereum 2.0 – and its staking! – is a strong event in the crypto ecosystem, both by its symbolism but also because it helps to strengthen the emergence of new models of investments and financial investments. By the way, the entire ecosystem of PoS projects could be boosted. Our offerings at Feel Mining keep getting richer, but it was impossible not to be particularly mobilized on the very next kickoff of this mutation of Ethereum.

In my opinion, it is essential to fully understand the historicity of the moment: in 10 years, we will pass for pioneers and will be envied for having experienced such events!

There are still a lot of unknowns regarding the dates, timing and even the level and mechanics of the rewards. However, the team is working hard to be able to immediately offer the community the opportunity to quickly position themselves on Ethereum staking. And as always, we will ensure that the barriers to entry are as low as possible and the investment environment as secure and ergonomic as possible. Furthermore, it is essential for us to be perfectly transparent about the unknowns and the risks involved in such operations.

Big news is coming on the subject, stay tuned! “

You got it, if you want to be among the first to take advantage of Ethereum 2.0 staking, it’s time to create an account on the Feel Mining platform!

In the previous episodes of the Tribune du Minage:

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