Comment
Author: Admin | 2025-04-28
Anyone familiar with the digital space understands that evolutions happen and they are meant to happen. Google has evolved, social media has evolved, record keeping has evolved, and even blockchain has evolved. In the blockchain space, Ethereum's network itself has evolved and will keep evolving. One such evolution is THE MERGE - a switch from PoW(Proof of Works) to PoS (Proof of Stake). The Merge was supposed to happen considering the huge amount of electricity that blockchain technology was consuming at the time. The switch to PoS was a system of running the Ethereum network in a decentralized manner different from the centralized network previously used. This new system of government made it possible for persons who contributed ETH to the network to receive governing rights as regards the network, and rewards too. To some experts, this did not sit well with them at first, but seeing the benefits of this system of government, ETH miners had to adapt. This new system of putting coins in exchange for governing power and rewards is called staking. Against what you already know, staking is beyond contributing ETH for rewards. In fact, there are several types of staking. The good news, however, is that this article discusses staking comprehensively, and it discusses the staking pool as a type of staking. Staking: What it is and The Different Types of Staking Staking in layman's terms means "investing" in Ethereum's network by contributing a particular amount of ETH - in this case, 32 ETH. When a person stakes, they award themselves governing power, voting power and validation rights. Hence, people who staked ETH are called validators. There are two types of staking: Solo staking and pool staking. Solo staking refers to individuals solely staking 32 ETH to the Ethereum network, while Pool staking, as the name suggests, refers to a group of persons coming together to "pool" ETH so they can stake.Solo staking is different from pool staking - a discussion for another day, but we will highlight a few differences. The major difference between solo staking and pool staking is that in solo staking,
Add Comment