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ETH staking is crucial to the Ethereum blockchain. Staking allows anyone to lock up their ETH in order to help validate transactions and run the blockchain.
Staking has several benefits.
Securing the platform
The Ethereum blockchain relies on stakers to make sure transactions are valid.
Anyone who has 32 ETH staked may be picked to “validate”, or create, the next block in the blockchain.
In return for helping to run the blockchain, stakers receive ETH as a reward.
The longer you stake, the more ETH you receive.
Stake as a Validator vs. with an Exchange
You normally need 32 ETH to stake and become a “validator” of the network.
However, crypto exchanges will pool your ETH with others, allowing you to stake any amount and still receive rewards.
You can’t stake on blockchains like Bitcoin.
Bitcoin uses “Proof-of-Work”, which secures the blockchain through miners solving complex math equations. Ethereum, meanwhile, uses “Proof-of-Stake” to run, which requires staking.
Hint: Staking makes sure all transactions added to the blockchain are correct.