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Proof Of Stake

All articles tagged with #proof of stake

technology2 months ago

Professor Coin Explores Bitcoin's Role in Sustainable Crypto Future

Bitcoin's energy consumption remains high, with recent estimates at 138 TWh annually, raising environmental concerns beyond just carbon emissions to include water, land, and e-waste impacts. While Bitcoin continues to use proof-of-work, which is energy-intensive, alternatives like Ethereum's proof-of-stake demonstrate that blockchain networks can be secure and more sustainable. Policy pressures are increasing, and the future of crypto's environmental impact depends on technological, regulatory, and community choices.

via Decrypt|
#bitcoin#energy-consumption#proof-of-stake
business7 months ago

SEC Clarifies Crypto Staking Not Securities Transactions

The SEC's Division of Corporation Finance clarifies that Protocol Staking activities involving crypto assets on proof-of-stake networks do not constitute securities offerings, covering activities like self-staking, custodial staking, and ancillary services, as they are considered administrative or ministerial rather than entrepreneurial or managerial efforts.

via SEC.gov|
#business#crypto-assets#proof-of-stake
cryptocurrency2 years ago

The Growing Concerns of Ethereum's Centralization and the Rise of Liquid Staking

CoinDesk Indices has launched the composite ether staking rate (CESR), which tracks the annualized yield from staking as a validator on the Ethereum Beacon Chain. The staking rate currently stands at around 3.75% and is a combination of the consensus base reward and the transaction reward. Despite Ethereum's lower advertised yield, when adjusted for supply inflation, it has the second-highest "real" staking rate among the top proof-of-stake protocols. Other protocols have higher annualized rates but suffer from substantial supply inflation, resulting in lower "real" yields. Ethereum's implementation of burn mechanics has reduced its annualized supply inflation to around 0%, making its staking yield more attractive. The growth of staking infrastructure and the emergence of liquid staking are driving innovation and simplifying the staking process.

via CoinDesk|
#cryptocurrency#ethereum#inflation
cryptocurrency2 years ago

Ethereum's Staking, Transaction Fees, and Price Predictions: A Year in Review

A year after Ethereum's transition from proof-of-work to proof-of-stake, known as the Merge, the blockchain's energy consumption has fallen by 99.9%. However, Ethereum still faces challenges related to centralization, censorship, and exploitation by infrastructure intermediaries. Stake distribution raises concerns about centralization, as the largest staking provider, Lido, nears the 33% threshold that could compromise security. The practice of maximal extractable value (MEV) has become a source of centralization and censorship, with Flashbots playing a controversial role. Liquid staking tokens have gained popularity, offering an alternative to traditional staking. The net supply of ETH is decreasing, making it deflationary, but its impact on value remains uncertain.

via CoinDesk|
#centralization#cryptocurrency#energy-consumption
cryptocurrency2 years ago

Ethereum's Upgrade Boosts Price and Staking Activity.

Over the past 24 hours, gross staking deposits of Ethereum have reached $198.7 million, or 94,800 ETH, following the network's latest Shanghai upgrade. Staking is when users pledge cryptocurrency to the network to keep it running, and those who stake earn digital currency rewards in the process. Ethereum made the move to proof of stake last year in a highly-anticipated transition, known as the merge. Validators can either choose between a "partial exit" or a "full exit" when leaving the network, and there are still more entities withdrawing than staking assets.

via Decrypt|
#cryptocurrency#ethereum#proof-of-stake
cryptocurrency2 years ago

Ethereum Upgrade Propels Ether Above $2K, Delays Withdrawals.

Ethereum's Ether (ETH) rose above $2,000 a day after the successful completion of the Shapella upgrade, which continued the transformation of the Ethereum network from a proof-of-work (PoW) to a more energy-efficient proof-of-stake (PoS) consensus mechanism. Market observers had diverged over ETH’s price reaction, with some predicting selling pressure would send the price down but others seeing little impact or even an increase in price. Institutional investors are currently waiting to see how the exit queue behaves in the next few weeks and whether liquidity will be sufficient for them to start staking. Meanwhile, Bitcoin (BTC) rose 1.8% for the day to change hands at around $30,375 Thursday afternoon.

via CoinDesk|
#bitcoin#cryptocurrency#ethereum
cryptocurrency2 years ago

Ethereum's Shanghai Upgrade Marks New Era for Staking Withdrawals and Trading.

Ethereum's Shanghai hard fork, also known as "Shapella," has been completed, allowing users who have staked their ether (ETH) to withdraw their funds and rewards. The upgrade marks a historic milestone for Ethereum, completing its multi-year transition to a full proof-of-stake network. The next issue the blockchain will tackle is scaling to make transactions faster and cheaper. Validators who want to exit the chain can now fully unstake their 32 ETH and any rewards they've accumulated. The unlocking of ETH deposited into the Beacon Chain may cause some selling pressure, but it is expected to be distributed over several days.

via CoinDesk|
#cryptocurrency#ethereum#proof-of-stake
cryptocurrency2 years ago

Ethereum's Shanghai Upgrade: A Game Changer for ETH Holders?

The upcoming Ethereum Shanghai hard fork, which will complete the transition to a proof-of-stake consensus system, will establish benchmark interest rates for blockchain-based money markets and change the landscape for ether (ETH) token holders, according to Zhuling Chen, CEO of blockchain services company RockX. The upgrade will make it easier to participate in the network's validation process while increasing security, lower fees and create more room for the network to handle more transactions. Chen said institutional investors see the event as more of a "trust vote" in the future of the blockchain.

via CoinDesk|
#cryptocurrency#decentralized-applications#ethereum
cryptocurrency2 years ago

Ethereum's Shanghai Upgrade and Its Impact on Price and Institutional Investment.

The upcoming "Shanghai" upgrade of Ethereum is expected to increase liquidity and trading of ether, possibly attracting more institutional capital into the crypto economy. The upgrade will democratize the staking process, leading to increased security and decentralization of the network. The implementation of EIP-1559 turned ETH into a deflationary asset, increasing its value over time. The upgrade is a crucial step towards increased institutional adoption of cryptocurrencies, and ETH may become one of the world's top three most valuable assets in the next decade. While there may be limited selling pressure on the Ethereum market in the near term, investors should thoroughly research and understand the potential risks and rewards before making any investment decisions.

via CoinDesk|
#cryptocurrency#deflationary-asset#ethereum
cryptocurrency2 years ago

Shanghai Upgrade: Will It Impact Ethereum's Price?

The upcoming Shanghai hard fork of Ethereum is unlikely to have a significant impact on the price of ether, according to Ether Capital CEO Brian Mosoff. The upgrade will allow users to withdraw the ether they have staked, but Mosoff believes that this will not lead to a rush to liquidate. Instead, he expects to see more ETH locked into staking, which could attract traditional finance investors looking to earn yield on their investments. The upgrade is the final step towards implementing Ethereum's proof-of-stake consensus mechanism.

via CoinDesk|
#cryptocurrency#ethereum#proof-of-stake
cryptocurrency2 years ago

Ethereum's Shanghai Upgrade: Impact on Price and Market Predictions.

The upcoming Shanghai upgrade for Ethereum's native token, Ether, may cause short-term selling pressure but will be extremely bullish in the mid-to-long term, according to Ethereum researcher Vivek Raman. The ability to unstake Ether will de-risk the investment and attract more capital to staking, improving the network's security. Institutional investors that couldn't get involved earlier in staking will feel more comfortable once ETH can be unstaked.

via Cointelegraph|
#cryptocurrency#ethereum#institutional-investors
cryptocurrency2 years ago

Ether Outshines Bitcoin as Major Upgrade Approaches.

Ethereum's ether has surged to a nine-month high ahead of a major network upgrade called "Shapella," which will allow owners of ether to withdraw their assets. The upgrade is expected to make the digital currency a more profitable long-term investment. The recent rally has followed a similar pattern to past bouts of enthusiasm surrounding network upgrades. In September, ethereum ran up ahead of a historic transition to a more energy-efficient way of securing the network, called proof-of-stake.

via CNBC|
#cryptocurrency#defi#ethereum
cryptocurrency2 years ago

Ethereum Surges Ahead of Shanghai Upgrade and Token Accessibility Improvement.

Ethereum's native token, Ether (ETH), surged to $1,941, its highest level since last August, and is expected to meet resistance near $2,000 ahead of the upcoming Shanghai hard fork, which will mark the completion of Ethereum's full transition to a proof-of-stake network. Meanwhile, Bitcoin remained range-bound between $27,000 and $28,500. Traders' preference for upside exposure was reflected in ETH's 25-delta calls becoming more expensive than its 25-delta puts. Altcoins, including Stargate Finance's STG token, gained while encrypted messaging protocol Mask Network's MASK token sank.

via CoinDesk|
#altcoins#cryptocurrency#cryptocurrency-market