ETH vs ETH2 WHAT’S UP WITH THAT?

You’ve probably heard about ETH 2.0, but if you haven’t we’re going to chat about it today.😜

If you’ve invested in Ether (the native cryptocurrency of the Ethereum Network) you may have been surprised at what appeared to be two versions of the coin on Coinbase and other crypto exchanges.

If you stake Ether on Coinbase, you may have realized that it’s now being converted from ETH to ETH2 (the prices of ETH and ETH2 are identical). From what I can tell (I’ve been reading about it on Forbes dot com) the two versions of Ether will be merged and combined into a single token. Also, they are now making STAKING the process that will replace mining to verify ETH transactions once the merge is completed.😳🤷🏾‍♀️

We discussed STAKING before in a previous post: Staking allows you to lock up a certain amount of crypto to participate in gaining interest or earning rewards. But the type of staking we’re talking about with ETH2 is locking up a certain amount of cryptocurrency to participate in the transaction verification process. It’s totally different.

In a proof-of-stake model, an algorithm selects which validator gets to add the next block to a blockchain based on how much cryptocurrency the validator has staked. Forbes dot com says, “Investors must stake at least 32 ETH to become an Ethereum validator. There are currently more than 300,0000 Ethereum validators. The more ETH each validator stakes, the more likely that validator is to produce blocks. Each time a validator produces blocks, the validator earns rewards in Ethereum for handling validation duties.”

(Tomorrow we will break down what proof-of-stake is to make this easier to understand).

I know it sounds a bit confusing - I’m just now getting the hang of it myself, but the more I read and understand, the easier it becomes. I pray over us all that the Spirit of God will help as we navigate the nuances of cryptocurrency and cause us to be better able to understand and have a working knowledge of all things concerning crypto! In Jesus’ name I pray, AMEN!

Copyright ©2022 Sherma Jacqueline Felix, BLACK ADVANTAGE Publishing™ . The author shall neither be liable nor responsible for any loss or damage allegedly arising from any information or suggestions in this post.