ETH 2.0 Staking with Binance futures trade bitcoin coin crypto: What you need to know before staking? I’ve mentioned a few days ago, how terrible I am with Trading, yet I am sharing a trading platform for cryptocurrencies. While I am working on building some skills with trading, I have used different products from Binance that would allow me to grow my crypto assets daily. One of them is the ETH 2.0 staking with Binance. For those who don’t know what ETH 2.0 staking is and whether should you go for it or not this post is definitely for you.
I’ll try my best to explain the ETH 2.0 staking in a very understandable way and what are the things you should know, so stick around and read till the end. What is ETH 2.0 Staking? Let’s start this post with a what. What is ETH 2.0? ETH 2.0 is a network upgrade to the current blockchain of Ethereum from Mining (Proof-of-Work) to minting (Proof-of-Stake). Proof-of-Work Mining. For those who aren’t new to cryptocurrencies, you probably know already that all transactions for Ethereum are being securely processed by Miners.
Miners are using high-performing GPUs to solve mathematical problems within the blockchain to complete a transaction. Mining uses a mechanism called Proof-of-Work. This means that whoever solves the equation first gets rewarded. That said, miners earn Ether for processing transactions, and for them to be the first one to solve they need to run a mining rig that consists of multiple high-performing and high-powered GPUS.
This mechanism uses a lot of power. To give you an idea, one GPU can use up to 150watts and miners uses a lot of GPUs and run it 24/7. The power it consumes can definitely affect our environment if we would really take it into considerations. It’s not just power consuming, it’s also producing heat. I tried mining and my GPU temp goes up to 80 degrees celsius, and that is just one GPU. This is an example of a mining rig and there are hundreds or probably thousands of it in some large-scale mining farms.
This kind of rig is just for personal use. Proof-of-Stake using a Node. There’s also another way of processing transactions in a blockchain and that is with the use of the Proof-of-Stake mechanism. This is already being used by other cryptocurrencies but not all. Ethereum and Bitcoin networks, the largest know cryptocurrencies are still using proof-of-work mining. ETH 2.0 is making a huge step in upgrading its network and turning it into a proof-of-stake mechanism.
So how do proof-of-stake works? With proof-of-stake, you can earn passively just like mining by staking your cryptocurrency and setting up a node. A node doesn’t require much power as the mining rigs. It only requires a regular PC with decent specs, even a laptop can work as a node. If you need more GPUs or miner with the Proof-of-work mining to higher hash rates and solve more equations quickly, proof-of-stake is different.