In our last article we introduced the Ethereum Merge and its potentially profound impact upon the world of investing–whether for traditional or digital assets. Bellatrix on September 6th paved the way for the final merge to likely happen around September 15th through the second stage–Paris. With this comes the transition from proof of work (PoW) to proof of stake (PoS). What will mining after Ethereum 2.0 look like?
The proof of work protocol entails two components for its blockchain: “miners” and work. Validators, dubbed miners, work to solve hash puzzles before adding a subsequent block to a blockchain. Each block contains a set of transaction data to be added to the immutable public ledger than is any one blockchain.
Mining after Ethereum 2.0 actually refers to “staking,” or the practice of validators staking (read: depositing) their assets for the benefit of a blockchain’s protocol. Proof of stake uses a modified form of random selection favoring integrous stakers with larger deposits while not disenfranchising those holding smaller deposits.
This article delves into proof of stake, Ethereum 2.0, and the larger impact of staking. Read more here.