Earlier, we talked about Ethereum 2.0 and its features and the change in consensus from proof of work to proof of stake. The proof of stake requires the validators to stake Ethereum before participating in the validation of blocks before they are rewarded.
What is Staking
Staking is the process of depositing (staking) Ethereum to activate the validator software. If you want to become a full validator who can propose and validate blocks, you need to stake 32 ETH, but you can stake less ETH, but you won’t propose or validate new blocks.
Purpose and Aims of Staking
Staking is a means of guarantee or earning the trust of the system. It is a way of saying you won’t try to cheat or manipulate the block you are proposing or validating. If a validator tries to manipulate or cheat, they will lose all or some of his staked Ethereum.
A validator is responsible for storing data, processing transactions, and adding new blocks to the blockchain. This process keeps the network secured and also rewards the validator.
What you need to get started
To become a full validator you will need the following:
- You need to have a connection to ETH 1.0 to be able to run a Beacon chain (a chain that connects a number of shards) node and the Validator node.
- To become a full validator, you need 32 ETH, which will be staked within the beacon deposit contract. And you also need to keep your validator node running and honest or you will lose all or some part of your staked ETH. This way, you can also earn rewards when done correctly without any manipulation. You can also run multiple validators, but you have to stake 32 ETH per validator.
- You can either join a staking pool or use an Avado node. You can join staking pools if you don’t have up to 32 ETH, you stake the amount of ETH you have, and they will add it to their pool, which also contains other validators. You can join a staking pool through Coinbase, Stakefish, and RocketPool.
- Avado nodes are mini-computers that are already pre-installed with an ETH 2.0 setup. All you have to do is to order a node and follow the Avado docs.
- You can run ETH 2.0 using a Laptop or Desktop (a powerful one), Servers, Mini-computers, and Clouds.
- After getting all the above requirements, you can start staking by going to the ETH Launchpad.