Ethereum 2.0 (ETH 2.0), the long-awaited major Ethereum update, was finally officially implemented on December 1, 2020. In the latest version of Ethereum, also known as Serenity, the Ethereum Consensus protocol changes from proof-of-work (or mining) to proof-of-stock, and the Ethereum team promises to make great strides in the network.
Of course, what happened on December 1 was the launch of Ethereum Phase Zero 2.0, and Ethereum mining will continue at the same time until Phase Two, which is likely to run in 2022. In this article, we will teach you how to prove your Ethereum 2.0 stock and explore the risks involved. If you still do not know about this update, it is recommended that you read the article “What is Ethereum 2.0; before reading this article; “Everything you need to know”.
What is stock proof?
Ethereum will use Proof Of Stake as an alternative to the current network consensus algorithm. A consensus algorithm is what helps ensure that network transactions are verified securely and decentrally, so that no one can cheat or attack the network. Ethereum is currently based on the Proof Of Work algorithm; Something that bitcoin and many digital currencies have been using for a long time and has stood the test of time in terms of security.
In fact, Ethereum wants to move to stock proofs to achieve its goals and speed up transactions.
In this new way, people no longer need powerful processing hardware to participate in building blockchain transactions. It is enough for these people to buy some ether, allocate it to the network, participate in the confirmation of transactions for their capital, and earn a percentage profit. The move to stock proof has long been planned on the Ethereum roadmap. In the stock proof protocol, the network will become stronger with the participation of more ether shareholders.
The concept of proof of stock means that each person can extract a digital currency simply in proportion to the number of coins he owns. This means that an interested person who owns 42% of all available ether coins can build 42% of Ethereum blocks and win 42% of all bonuses. This can be promising for those who already own ether. In addition, many experts believe that this phenomenon will raise the transaction verification process to a higher level by highlighting many weaknesses of the proof-of-work algorithm.
What is Ethereum Shares?
Ethereum Staking is a process that allows us to participate in transaction verification by allocating some ether to the network to obtain more ether.
More important than the definition of equity is how you participate in it. How exactly should we start investing in Ethereum? Ethereum Network considers the following to ensure that fraud does not occur in the network:
- Manage the people who create the block
- Ensure compliance with Blockchain rules
- Penalties for those who do not follow these rules.
Rewards for participating in stock proofs
The company’s reward for proving Ethereum shares is not yet known, but it will probably be between 5 and 20 percent per year. The amount of reward varies constantly depending on the status of the Ethereum network. For example, if you have 32 ethers and the annual proof of stock bonus is 5%, one year later your ether number is 33.6 units.
This figure may seem small, but for someone who has bought Ethereum for the purpose of long-term investment and does not intend to sell them, it makes perfect sense to prove the stock, because in addition to being able to take advantage of ether price increases over time, receive additional rewards. he does.
Training to participate in proving Ethereum shares
There are two ways to participate in proving Ethereum shares; Direct method and indirect method.
The direct method requires special conditions. First of all, you must have at least 32 ethers to share, which at the time of writing is equivalent to more than $ 18,000 (more than 450 million tomans). You should also be able to become a full-node with a relatively powerful computer by downloading the original Ethereum software, and your system (server) should always be on. (If you shut down your system, you lose part or all of your assets.)
Don’t forget that by taking your Ethereums to the main Ethereum 2.0 clients, you will not be able to pick up your Ethereums until Phase Two is released (probably by 2022).
The main advantage of the direct method is that you connect directly to the network and do not need to trust intermediaries. We will explain this method in full below, but since it is not possible for most users to participate directly in stock proofreading, we will first turn to the indirect method.
In the indirect method, you have to get help from intermediaries (exchanges and pools of shares) and participate in Ethereum shares through them. In this method, there is no need to have 32 ethers or the system is always on. It’s like joining a mining pool in mining-based currencies.
Dozens of services have already announced their readiness to provide equity services, the most reputable of which are:
|Name and type||Minimum share amount||Wage||Time to start stocking||Possibility of harvesting|
|Bainance – Concentrated||unlimited||Unknown||From now on||Has (in the form of BETH tokens)|
|Rocket Pool – Decentralized||unlimited||Unknown||First quarter 2021||has it|
|Stkr – Semi-concentrated||0,5 اتر||23% bonus||From now on||Has (in the form of aETH token)|
|Stakewise Pool – Semi-concentrated||unlimited||10% bonus||From now on||Has (in the form of tokens)|
Complete list of equity service platforms from this page You can see.
AttentionAs we mentioned, in the indirect method you have to trust the intermediaries. The above list has been compiled from the official Ethereum website and the Digital Currency Website has no responsibility for their introduction. Before using a service, be sure to do a thorough research yourself.
We said that after the stake in Ethereum 2.0, it will not be possible to re-withdraw the Ethereums until the implementation of Phase Two (probably 2022). However, on platforms that allow you to withdraw ether in tokens, when you share your Ethereums, the exchange or pool gives you another digital currency equal to the value of your Ethereums that can be traded and traded. After launching the second phase of Ethereum 2.0, you can deliver those tokens and get your Ethereums back.
For example, in Bainance Exchange, from January 2021 (mid-December 1999) for each unit of ether to be subscribed, 1 token called BETH will be given to the user and he can sell these tokens and convert them into other digital currencies if needed. . After launching Phase Two, Ethereum will receive a price for each BETH in the user’s Bainance account. Other platforms each create their own tokens and donate them to users who have subscribed.
Given that the token must have credibility and some kind of support, it is best to research well before investing and use a platform that has a higher credibility. For example, the token offered by Bainance – given the exchange’s big name – is likely to be valid and easily convertible.
Ethereum Sharing Training in Bainance Exchange
Since most Iranian users use Binance Exchange for digital currency transactions, here we teach how to share in Binance Exchange. Working on other platforms is almost the same and not too difficult.
We emphasize that this is an educational issue and should not be considered as a recommendation for equity.
Follow these steps to prove Ethereum shares in Bainance:
1. Log in to the “Binance Earn” section from your account and in the “Finance” section.
۲. Click “ETH 2.0 Staking” at the top of the page to enter the Ethereum 2 share page.
You can also go to This link Log in directly to the share page, but be careful not to log in with IP Iran.
3. You can share your ethers by clicking on the “Stake Now” button.
Before doing so, consider the following:
- Equipped ethers will not be withdrawn or convertible until the implementation of Phase Two of Ethereum 2.0, but Bainance will give you the BETH token equivalent of your ethers, which is negotiable.
- BETH tokens are scheduled to be credited to users’ accounts in January 2021.
- When you convert your BETHs, it is as if you have converted your Ethereums.
- After the implementation of Phase Two (probably 2022), users can receive Ethereum in exchange for BETH units.
- The share bonus for the network status is between 5 and 20% per year, which will be regularly credited to the users’ share account.
Direct method for Ethereum stock
If you meet the following conditions, you can participate directly in the Ethereum 2.0 stake:
- 32 units of ether (over $ 18,000 at the time of writing)
- A relatively powerful computer system (server) that is always on. (At least 8 GB of RAM, multi-core processor and 400 GB of SSD free space)
- A little technical knowledge of Chinese code and blocks
If you have these conditions, go to «Ethereum launch padGo and start proving direct stock through a relatively complex process.
Ethereum 2.0 shareholding risks
Sharing Ethereum 2.0 is not without risk, especially now that the network is unstable. In general, if you use the indirect method (exchanges or pools), there will be equity risks for the exchange or pool, but because you trust these institutions, their error may be to your detriment.
The most important equity risks in Ethereum 2.0 are:
Primary and unforeseen risks
The future of any new innovation is very uncertain at first. Although tests and research have been done thoroughly before the Ethereum 2.0 run, the chances of the network failing or finding a major problem are not zero. By owning Ethereum, you are truly trusting the developers and the Ethereum community.
Depreciation of assets while you can not sell
If you participate directly in stock proof, you will probably not be able to pick up your ethers until 2022, when the final phase of Ethereum 2.0 runs, which means you should hope that the value of ether does not decrease during this time. Even if you participate in exchanges and pools that have provided withdrawals, the token that a miscellaneous company pays for your Ethereums may not have enough credit and liquidity in the exchanges.
Risk of losing assets
If you go straight to proof of stock and your system shuts down for a while, you will lose some of your assets for breaking the law. Slashing is also called punishing creditors for breaking the covenant. If you share in a pool or exchange office, you have in fact trusted an intermediary who will not shut down his server or cheat on the network. In pool pools, when the network runs out of inventory due to error detection, the pool users’ inventory will be reduced equally.
Proof of Ethereum stock has started and now you can participate in this fascinating activity. However, we recommend that you do a thorough research yourself and weigh the risks before taking any action. Don’t forget that Ethereum 2.0 has just been launched and has a vague future ahead.