How Does Ethereum Staking Work

Ethereum Staking is the procedure used to verify the transaction and add the validated block to the blockchain. After the entire process, you are given the award in return for your stake. Ethereum Staking, in its wider context, is the process of locking and keeping your assets to work for a profit.

Staking uses the consensus Proof of Stake (POS) implemented on the Ethereum blockchain and comes in the update of Proof of Work (POW). Let’s have a broader view of Ethereum Staking and how it works.

What is Ethereum Staking

Ethereum staking is the process of locking ether (ETH) to get the opportunity of validating the transactions and the Proof of Stake (PoS) concept requires a stake to take advantage of the opportunity more stakes equal more opportunities to retain the blockchain assets. In this context, stake refers to the number of coins. The validator in this approach will be randomly chosen based on the stake.

How Does Ethereum Staking Works

As we all know, in Ethereum Staking, higher stakes are required, more stakes mean more staking opportunities. However, if a single node behaves maliciously along the entire chain, the network would remove it and all the locking stakes would be slashed.

Slashing is when a node acts up deliberately and tries to break the rules; however, there is another aspect of slashing that occurs when you are performing a transaction but the transaction is interrupted in some way, in which case your stake may also be lost.

The node with the largest stake verifies all network transactions before adding them to the network so that they can be updated across the whole distributed ledger on the peer-to-peer network.

Ethereum staking consumes electricity and demands for high-performance equipment to validate the transactions. And in return, you receive a staking incentive (also called a gas fee) for validating each transaction, this is a luxury way to make money.


Ethereum staking is the process of locking the ether (ETH) to validate the transaction. After validation, it helps to add the validated blocks into the entire blockchain network as well as it would be updated to the distributed ledger. All these tasks are done by the consensus called Proof of Stake (POS).

About the author


Trade with Binance.US