- Written by Rakuten Blockchain Lab's Fergal Downey
Staking is what you need to do to become a validator in a proof-of-stake system. This is a consensus mechanism that is going to replace the proof-of-work system currently in place on the Ethereum blockchain network.
Consensus mechanisms are what keep blockchains like Ethereum secure and decentralized.
The minimum cost of entry for Ethereum staking is 32 ETH (approximately £14,000), which will be locked up for 2+ years, as well as a commitment to run 24x7 secure software components (Ethereum 1.0 client, a beacon chain node, and Eth2 validator clients) for the lock-up period.
Financial gains can be realised from staking, but more importantly, this activity is supporting one of the most significant protocol changes in the short history of public blockchains as Ethereum transitions its consensus model from Proof of Work (same as Bitcoin) to Proof of Stake (PoS).
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As a validator, we will be responsible for storing data, processing transactions, and adding new blocks to the Ethereum blockchain.
The scheduled launch of the beacon chain on 1 December required a minimum of 500,000 ETH to be deposited to the Ethereum Phase 0 Deposit contract address by 24 November.
This was significantly oversubscribed with over 850,000 ETH (just short of $500,000) already committed at the time of writing, demonstrating support from the community and investors alike.
We are set for the much-awaited launch and excited to be playing our part in this historic event.
