More than 5 million ETHs have been sent to the Ethereum 2.0 stake contract

According to The Block’s Data Dashboard , the volume of Ethereum (ETH) in its stake contract has exceeded 5 million. The current amount in the contract is 5.2 million ETH, valued at $ 13.6 billion. The price of one ETH at the time of writing is $ 2,630.

As part of the main addition to Ethereum 2.0, the transition from the proof of stake mechanism to the proof of work will take place in the Ethereum block chain. This moves the blockchain away from the need to rely on miners to process transactions, allowing anyone willing to contribute 32 ETHs to process them instead – at the risk of losing coins in the event of malicious behavior.

According to Beaconcha.in , 152,000 validators (unlike miners) currently process the contribution verification network. These validators have a block success rate of about 99%, with about 1% of blocks skipped per day.

The storage agreement is where Ethereum users have to send their ETHs if they want to be included in the network. The amount of ETH in the deposit agreement indicates the upper limit of the amount of funds available for participation in the network.

Those who keep ETH online receive up to 23% benefits. But it also has its hook; Both contributions and benefits can only be withdrawn if Ethereum 2.0 Supplement 1.5. phase will start work scheduled for 2022.

Proof of work explained

The job is what you need to do to become a validator in a job verification system. It is a consensus mechanism that will replace the current system of proof of contribution. Consensus mechanisms are those that keep block circuits such as Ethereum secure and decentralized.

Your ETH is at stake

Since you have to bet on your ETH to confirm transactions and create new blocks, you can lose it if you decide to try to cheat the system.

More validators, more security

In a blockchain like Ethereum, you can censor and rearrange transactions to suit you if you control most of the network. However, you need most validators to run most networks, and you need to check most ETHs in the system – that’s a lot! This amount of ETH increases each time a new validator enters the system, which strengthens network security.

Proof of input, which will be replaced by a proof of employment model, will require special hardware and a lot of physical space from validators (miners) – it will be difficult to enter the system as a miner, so security against most attacks will not increase as much. Proof of employment does not have the requirements that should increase the size of the network (and its resistance to majority attacks) to a size that does not contribute topossible in the case of proof.