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EthereumThe new Serenity update, which will allow the network to switch from a Proof of Work (PoW) model to a Proof of Stake (PoS) consensus model, has generated a lot of hype in 2018. In addition to tackling the problem of scalability, the new chain also drastically reduces the costs of managing a stake out node in Ethereum 2.0, was presented in a tweet on November 20, 2018.
The protocol update reduces the cost of stakeout
In a rapidly declining encrypted market, news on technical updates of some of the most popular blockchain networks out there have a tendency to go under the radar.
October 31st Ethereum co-founder Vitalik Buterin spoke about the Ethereum 2.0 update and the basic idea behind the new platform during the Devcon4 conference in Prague.
He spoke of Serenity, the Proof of mail (POS) protocol that the platform will use for the Ethereum Update 2.0. Very few technical details were provided on the protocol itself, but Buterin explained what was in the update and what problems it was intended to address.
And while most of the industry was focused on comparing the new protocol with the POW standard or the decreasing value of cryptocurrencies, a Twitter user highlighted one of the main benefits that the new consensus will bring to the network.
David Hoffman, blockchain researcher at Bunker Capital and host of the POV Crypto podcast, said the new update would significantly reduce the cost of stakeout.
he tweeted November 19:
32 ETH to perform a stakeout node in Ethereum 2.0 hours costs less than $ 5,000
– David Hoffman (@TrustlessState) November 19, 2018
The announcement has caused quite a stir among his followers, many of whom are active traders or ETH miners.
How does the new protocol benefit from the network?
According to Hoffman, when the Ethereum network changes from PoW to PoS, 32 ETHs will be required for the game. How staking will replace extraction in the new consent protocol, the stakers will be able to receive block premiums and transaction fees.
Prizes allow stakers to receive passive income, earning up to 5% of ETH bet every year. The fall in the price that Ether recorded in the second half of November has certainly had a positive effect on this aspect, since the loss in value means that the 32 ETHs are worth less than $ 5,000.
The lower price means that more stakers could enter the network, increasing its efficiency. Vitalik Buterin talked about the problems Ethereum he had when he developed Serenity during his Keynote Devcon 4 speech and said the new protocol would be a thousand times more scalable than the original concept of PoW.
Ethereum, currently ranked third in market capitalization, is falling 3.56% in the last 24 hours. ETH has a market capitalization of $ 13.77 billion with a 24-hour volume of $ 2.79 billion.
Graph of CryptoCompare
Ethereum is down 3.56% in the last 24 hours.
Cover photo by Ishan @seefromthesky on Unsplash
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