How to Stake ETH 2.0

Ethereum is one of the most important cryptocurrencies only behind Bitcoin in TVL from the charts. Ethereum 2.0 is the effective upgrade of the entire Ethreum network from proof-of-work to proof-of-stake. The Ethreum foundation didn’t feel it was okay to continue to continue to refer to the series of upgrades as ETH 2.0 owing to mixed perceptions about what it meant. Some users, for example, were not sure if Ethreum was still going to be Ethreum after the upgrade so it is best to refer to ETH 2.0 as Ethreum proof of stake.

Ethreum Proof-of-Stake is a series of upgrades that led to the current complete PoS status of the Ethereum blockchain and it followed three crucial timelines. The Beacon chain shipped on December 1, 2020, and it established the track for further upgrades leading to Ethreum proof-of-stake. It introduced proof-of-stake, alongside the existing consensus algorithm on Ethereum. The Merge will connect the Ethereum mainnet with the proof-of-stake system established on the Beaconchain. It will make proof-of-stake available on the entire network. The next upgrade known as shard chains will expand Ethereum's ability to handle data by breaking the verification of transactions into bits rather than originally checking the entire history of transactions on Ethreum.

System Requirements

While Ethereum Proof of Stake is not like mining using Ethhash to crypt and solve complex puzzles, you will need a decent amount of space and hardware to stake when Ethreum 2.0 eventually goes live soon. The minimum specifications is, a 64-bit Linux, Mac OS X 10.14+, Windows 64-bit, an Intel Core i5–760 or AMD FX-8100 or better, 4GB of RAM, and 20GB available space SSD. The maximum hardware specification is an intel Core i7–4770 or AMD FX-8310 or higher, 8GB RAM, and 100GB SSD.

How Much Does It Cost?

The cost of staking on ETH 2.0 is 32 ETH, the price in a stable currency like USDT or USDC will depend on the market price of ETH at the time of your purchase. There may be network fees during the staking too so you may need to hold some extra ETH in the wallet you chose to use. All validators must hold this amount of ETH.

What Is the Potential APY?

The APY you can earn from ETH 2.0 depends on a number of factors. Developers at the Ethreum foundation implemented a sliding scale for ETH 2.0 which makes the APY variable. As a rule, however, the higher the number of stakers, the lower the potential APY earnings from being a validator on Ethreum. Estimates of the APY puts it at around 5-18% per year.

How Do You Stake on ETH 2.0?

Centralized platforms like Coinbase, Binance, and Kraken offer ETH staking at the time of writing. Since these are not decentralized options it is not advisable for those who only trust decentralized platforms. The two sure ways to stake on ETH 2.O in a decentralized way are Rocketpool and the Ethereum node staking interface. Rocketpool allows crowd staking where validators can contribute 50% each to earn the rewards of one validator. Do the following for Ethreum node staking.

1. Visit the Node Staking address, and click on become a validator.
2. Follow the instructions and accept providing consent to continue.
3. Install the Parity Open Ethereum client.
4. Select Lighthouse and click on continue.
5. Select your system command line and install.
6. Save your passphrase from the command prompt.
7. Connect your wallet and get started as a validator.

Should You Stake ETH 2.0?

Considering the potential upside of Ethreum and the amount of interest in the token, Staking ETH 2.0 is worth it in every respect. There are already billions of dollars invested in this and several more billions of dollars will come in when The Merge is Complete.