In the last article I wrote about what is ETH2.0 and why it is important u can visit here. In there I have mentioned about proof of work and proof of stake now lets see it in detail.
Proof Of Work
Proof of work is an energy intensive consensus protocol used by the Bitcoin network. Proof of stake is a newer consensus protocol that requires less energy and involves choosing miners by how invested they are in the community.
In Proof Of Work, Miners need to complete a block in blockchain to be rewarded. The reward depends on how much u had generated in the blockchain.
The block is like a difficult puzzle every time u solve that puzzle a new block is formed in the blockchain. The Proof Of work concept was first introduced by bitcoin late on followed by Litecoin and Ethereum.
Though similar in nature all three technology varies, the bitcoin uses SHA 256 algorithm, Litecoin uses Script and Ethereum uses What is known as Ethash,.
The major downside to this system is it requires a lot of electricity and machines to work on a problem in order to solve it.
Proof Of Stake
Proof of Stake is the exact opposite to proof of work in how it functions but for the same purpose.
Instead of rewarding the miner for every bock the machine generates, in proof of stake transaction the new block is chosen by the network to be verified by the validators and reward for the same is given based on the amount of crypto staked.
What Ethereum miners need to do now?
As Ethereum is transitioning Proof of Work to proof of stake existing mining rigs are not useful after the transition.
One of the biggest shifts this new system would bring is that miners are no longer rewarded for creating the blocks.
Instead, they will be rewarded in transaction fees.
That has lead some to redefine miners as forgers.
Do u need to become a forger
For that first u need to stake 32 eth in the staking platform provided by the Ethereum foundation. At the time of writing this article 32 eth is 16386.24$.
Its not enough u need to have a top notch internet connection to be a validator and for getting block rewards.
Well this is for now, will see u back later.
Affiliate Links:
publishox :- Y U no sign up yet?? Earn crypto for writing AND reading!
bravebrowser :-Like Google Chrome, but earn BAT crypto!
presearch :- Like Google search, but earn crypto! (Referral bonus: 25 free PRE tokens!)
netbox.global :- like google chrome, but earn NBX crypto!
miningcompany.ltd :- one stop mining platform for all cryptos and their plan is also free to start
Cryptotab- I use it to mine bitcoin on my mobile and pc
Thank you for visiting for more interesting news like this pls subscribe to the blog.
