Hi Everyone !
It's Fathur here from Cripto Akademia, I am one of Gitshock Finance's co-founders. I'm here want to share some basic tips to become ethereum blockchain validator. First of all, we'll learn what is validator, difference between validators and stakers and benefit of validators.
First of all, I would like to declare my genuity of artworks used by this channel. I am using Corel Draw to make those my own under the Cripto Akademia brand. Cripto Akademia is my newest channel where I want to share my interpretations of my crypto understandings I used to read to develop my project with my team. I want to share them more visual because I believe visuals speak louder than words, so it must be more understandable to you as audience.
A. New Ethereum Proof of Stake Introduction
Who doesn't know Ethereum today? Ethereum is one of the best public blockchain platform that has biggest total value locked on the network. Ethereum has several testnet blockchains namely; Rinkeby, Goerly, Beacon and the latest one Sepoila. The testnet chains will work as a prototype of the upcoming live mainnet blockchain where developer can test the blockchain features such as gas fee adjustment, speed and block rewards before bringing them to the mainnet. Lately, Ethereum just announced to become proof of stake blockchain and leave the old mechanism called proof of work (same as Bitcoin's). This transition is bringing Beacon Chain (one of Ethereum testnets) to live and merging it with the existing Ethereum blockchain.
This transition will convert the miners who previously co-secured Ethereum main nodes by running blockchain mining devices to become validators who must have 32 ETH to be deposited on Ethereum nodes as collateral of their loyalty to other Ethereum validators. In addition, the miners who want to keep mining by device can still earn from Ethereum previous Proof of Work chain in ETHW token (Ethereum Proof of Work Reward). But the rate of ETH and ETHW is so different (you can check them on Coinmarketcap).
B. Validators of Ethereum
As we know that proof of stake blockchain will require to have more than one validators, we first should understand why they join the blockchain validators. Ethereum validators have to deposit 32 ETH (~64K USD) to their validator contract to earn 5-6% from the Ethereum APR and at the same time they need to validate every transaction hosted on Ethereum network, so they will also earn from Ethereum network fees paid by network users daily.
The rewards from APR is taken from Consensus Layer (proof of stake consensus) and the reward from user called tips from execution layer where every transaction is being executed by validators.
C. Benefit of Validating a PoS Blockhain
Like many other public chains, PoS consensus blockchain will need validators to participate on the network. There are many benefits of running blockhain validators for us such as;
- Help securing the network
- Able to participate in Ethereum decision making on their DAO
- Able to earn passively from APR and tips
- Being a validator means a privilege because it means your account is selected by uptimes
- Helping cloud companies to keep running from their cloud service we used for validating a chain
- Have a credible name as a validator company/individual.
Conclusion
Overall, this post is semi-subjective post, but I hope it will give new Steemit members to understand how basically Ethereum PoS work. I will be open for discussion on the comment session, in case you have other opinion I need to know, just feel free to write it. I am also wondering, is Steem blockchain a proof of stake blockchain? and how can we become a validators. I will do other research about that.
Thank You for your time in reading this post. I hope you can support my channel by follow and upvotes! See you later...