The long waited ETH 2.0 upgrade is finally here and it offers much more for ETH users, it offers security, scalability and sustainability. In this article we will cover how you can participate in the ETH 2.0 staking and become a validator.
We are all aware of the current high ETH gas fees and scalability issues, but ETH 2.0 is built to offer security, scalability and sustainability features. But in order to do that it will need to change from Proof of Work (Pow) to Proof of Stake (PoS) and in order for you to stake it you will have to become a validator. To become a validator originally you will need to have 32 ETH in order to deposit your ETH to an ETH2 address. But EGG.FI made it easy for everyone and the 32 ETH minimum staking is now 10$.
What is Ethereum 2.0?
Shortly, ETH 2.0 is a revamp of the current Ethereum blockchain. This change will increase the blockchain’s speed, efficiency and scalability thanks to the Proof of Stake mechanism.
When will Ethereum 2.0 be launched?
Ethereum 2.0 went live on 1st December, 2020 and currently it has more than 1$ billion staked on it.
How do I start staking Ethereum 2.0?
First of all, staking Ethereum 2.0 is not affordable for everyone at the moment because you will need 32 ETH to become validator, but EGG.FI provided a solution for that, on EGG.FI you can (hyperlink “stake”) ETH 2.0 with your Ethereum, Bitcoin and EGG. To start staking your ETH 2.0 you will have to visit EGG.FI staking category and select ETH 2.0 staking project, select the payment method, enter your amount that you want to stake, confirm the payment and start staking.
What requirements validators need to meet for Ethereum 2.0 staking?
To stake on your behalf you will have to complete complicated steps and to have at least 32 ETH on your wallet address.
1) Funds: You will need at least 32 ETH to become a validator, those coins will be locked for 18 months.
2) Sync your ETH1 and ETH2 nodes: You will have to download and sync your ETH1 and ETH 2 client nodes, this is the most important step in the staking process.
3) Key management: In order to stake ETH 2.0 you will have to generate and save ETH2 deposit key(s) and backup your seed/mnemonic. You will have to carefully save your validator keys and provide them once its needed.
4) Upload your keystore file: You will have to connect to Beacon Node and to do that you need to import your keystore and validate that it is really you that you want to run the client.
5) Connect ETH1 with the ETH Beacon Node: You will have to make sure that your ETH2 beacon node is able to connect to your ETH1 client through the API. Double check and make sure you are always running the latest software release.
6) Deposit your Ethereum: This is the final step where you will have to transfer your Ethereum to the given deposit address.
If you want to skip all of the hassle then you can stake with EGG.FI and earn ETH + EGG APY!
What is the recommended hardware for Ethereum 2.0 staking?
It is recommended to have at least 140 GB of fast SSD in order to run the “geth fast sync”, also it is very important to have a solid and fast internet connection in order to complete the staking process. The recommendation is around 20 Mbps for the staking.
If you do not have the necessary equipment or internet connection then you can still stake ETH with EGG.FI, we do not require those needs listed above, all you need to have is a minimum of 10$ and a internet connection in order to stake ETH 2.0
The penalty system
With a great power comes great responsibility. If you do not follow the Ethereum rules you will lose your ETH, this means that you will have to be online because validators are incentivized to stay online as much as possible, if you go offline for a long time you will be probably penalized and punished.
The key concept according to Ethereum.org is the following one:
- You will be rewarded for actions that help the Ethereum network for reaching consensus
- Penalties and punishment’s will be given to people who’s actions hinder the Ethereum network consensuses.
- Malicious actions will result in major penalties or slashing (minimum 1 ETH)
What are the risks of staking ETH 2.0?
With every project there is a risk, one of the risks is that you will have to send your ETH to another wallet and lock them for minimum of 18 months, for that period of time many things can happen, price can go up and down and your portfolio may suffer losses or gains.
Another risk is that if you unstake before the lockdown period you will be penalized, for example if you earned 0.02 ETH and you unstake you will be penalized for 0.002 ETH.