Redacción: @anita_c2310

1.      What is Staking?

METAMASK defines “Staking” as a strategy used across crypto and web3 that empowers users to participate in keeping a blockchain network honest and secure. Locking up tokens is common across web3, and is often what’s happening when you see a reference to “staking” tokens. Users typically receive some sort of access, privilege, or reward over time in exchange for their lockup, and can withdraw their tokens as and when they wish.

2.      Ethereum case in Web3

Enter Ethereum’s Proof of Stake system. Anyone can choose to become a validator and lock up their ETH by depositing it into a smart contract—a program that runs on Ethereum’s blockchain. With over 565,000 validators staking the standard 32 ETH each—more than $32 billion at today's rates—Ethereum's Proof of Stake (PoS) mechanism is the biggest example of staking in web3.

The challenge of PoW have now been negated by Proof of Stake (PoS). Under PoS, the network is secured by numerous parties depositing 32 ETH into a smart contract. The more tokens that are staked, the more expensive it become for a bad actor to attack the network. This deposit, or stake earns you the right to take part in building new blocks for the blockchain and to get rewarded in return. If you don’t play this role properly, though, some or all of your stake will be taken from you—a punishment known as “slashing”.

Shifting to PoS allowed Ethereum to maintain the security of its network and reduce carbon emissions by over 99.95%, compared with PoW.

3.      What about Liquid staking?

A more readily accessible option, especially if you don't have 32 ETH laying around (and most of us don’t), is liquid staking: the ability to deposit less than 32 ETH into a pool that is then used to initiate and maintain staking nodes.

Liquid staking provides the additional benefit of receiving, in return for your deposit, a liquid staking token. This token represents the amount of ETH you’ve staked, plus the rewards generated by your ETH; that makes it easy to keep track of your deposit for when you would like to withdraw your stake, or you can even use this token as collateral elsewhere in DeFi.

4.      Which are steps of Staking?

5.      Examples of Web3 Staking:

·        Ethereum: Ethereum uses a staking mechanism called Proof of Stake (PoS) to validate transactions on its network. Users can stake their ETH and earn more ETH as a reward.

·        Cardano: Cardano is another blockchain platform that uses PoS to validate transactions. Users can stake their ADA and earn more ADA as a reward.

6.      Conclusion:

Staking is a significant aspect of Web 3.0 projects, as it encourages participation and decentralization while offering stakeholders a way to earn passive income by supporting and securing blockchain networks.

This post is part of the activities assigned within the international Women Biz and Optimism Bootcamp.

Redacción: @anita_c2310

1.      What is Staking?

METAMASK defines “Staking” as a strategy used across crypto and web3 that empowers users to participate in keeping a blockchain network honest and secure. Locking up tokens is common across web3, and is often what’s happening when you see a reference to “staking” tokens. Users typically receive some sort of access, privilege, or reward over time in exchange for their lockup, and can withdraw their tokens as and when they wish.

2.      Ethereum case in Web3

Enter Ethereum’s Proof of Stake system. Anyone can choose to become a validator and lock up their ETH by depositing it into a smart contract—a program that runs on Ethereum’s blockchain. With over 565,000 validators staking the standard 32 ETH each—more than $32 billion at today's rates—Ethereum's Proof of Stake (PoS) mechanism is the biggest example of staking in web3.

The challenge of PoW have now been negated by Proof of Stake (PoS). Under PoS, the network is secured by numerous parties depositing 32 ETH into a smart contract. The more tokens that are staked, the more expensive it become for a bad actor to attack the network. This deposit, or stake earns you the right to take part in building new blocks for the blockchain and to get rewarded in return. If you don’t play this role properly, though, some or all of your stake will be taken from you—a punishment known as “slashing”.

Shifting to PoS allowed Ethereum to maintain the security of its network and reduce carbon emissions by over 99.95%, compared with PoW.

3.      What about Liquid staking?

A more readily accessible option, especially if you don't have 32 ETH laying around (and most of us don’t), is liquid staking: the ability to deposit less than 32 ETH into a pool that is then used to initiate and maintain staking nodes.

Liquid staking provides the additional benefit of receiving, in return for your deposit, a liquid staking token. This token represents the amount of ETH you’ve staked, plus the rewards generated by your ETH; that makes it easy to keep track of your deposit for when you would like to withdraw your stake, or you can even use this token as collateral elsewhere in DeFi.

4.      Which are steps of Staking?

5.      Examples of Web3 Staking:

·        Ethereum: Ethereum uses a staking mechanism called Proof of Stake (PoS) to validate transactions on its network. Users can stake their ETH and earn more ETH as a reward.

·        Cardano: Cardano is another blockchain platform that uses PoS to validate transactions. Users can stake their ADA and earn more ADA as a reward.

6.      Conclusion:

Staking is a significant aspect of Web 3.0 projects, as it encourages participation and decentralization while offering stakeholders a way to earn passive income by supporting and securing blockchain networks.

This post is part of the activities assigned within the international Women Biz and Optimism Bootcamp.