Ethereum Switches To PoS, This 10 Million ETH Will Be Staking

Ethereum will switch to Proof of Stake. (Pixabay)

JAKARTA - Ethereum will switch from a Proof-of-Work (PoW) algorithm to Proof-of-Stake (PoS), this will make ETH stakeable. Hence Ethereum 2.0 came into existence. Recently as much as 10 million ETH worth 26 billion US dollars (IDR 372 trillion) was in deposit contracts for staking.

CryptoPotato reports that deposit contracts for staking reside on the Beacon chain, the blockchain that provides the Ethereum 2.0 ecosystem. It has now raised over 10 million ETH. That is 26 billion US dollars of staked value at current prices.

Ethereum 2.0 is the long awaited Ethereum upgrade that will change the Ethereum consensus mechanism from PoW to PoS.

The Beacon chain will be the core of the Ethereum 2.0 chain, which will join the existing Ethereum chain and replace mining in July this year.

Even though Ethereum 2.0 is not officially released, ETH holders are already possible to stake their holdings on the Beacon chain. At the time of writing, the contract held 10.021.538 ETH, approximately 26.124.946.981.62 billion US dollars.

On the other hand, PoW requires miners to issue power mining blocks, PoW allows ETH owners to stake. Vitalik Buterin believes this will reduce Ethereum's carbon footprint while providing greater transaction scalability.

However, the founder said the same thing about the London hard fork which was judged to have failed to reduce the high gas fee.

Compared to other PoS coins, Ethereum 2.0 currently has the third highest stake value on the network. It was surpassed only by Solana and Terra, while Cardano was surpassed.

All Beacon chain validators run full nodes, which means the number of Ethereum nodes will increase exponentially after the arrival of Ethereum 2.0 as reported by CryptoPotato.