Introduction To Gate.io ETH 2.0 Mining
[TL; DR]
The Ethereum Version 2.0 upgrade deploys the Proof of Stake mechanism instead of the former version that uses Proof of Work.
The discussion of the need to upgrade the operation mechanism of Ethereum dates back to 2016.
There are exciting features expected to improve scalability on the ETH 2.0 version.
Some features include the Operation mechanism, sharding, Validators, etc.
Asides from a cryptocurrency exchange, trading, and swapping, you can mine the ETH 2.0 and become a validator via the Gate.io platform.
The crypto platform seeks to increase ETH 2.0 mining by making the process flexible and reducing the entry-level requirements.
When a user becomes a holder of ETH 2.0, you are pledging to participate in the Gate.io ETH 2.0 mining.
It is easy to register on Gate.io and become an ETH2.0 miner.
Keywords: Mining, Ethereum, blockchain, Proof of Work, Proof of Stake, features, upgrade, miners, mechanism.
[Full Article]
The Ethereum blockchain currently deploys the Proof of Work (PoW) mechanism in its operations. This Proof Of Work mechanism has several features that are no longer acceptable and have become obsolete in the blockchain ecosystem.
A significant percentage of cryptocurrency enthusiasts and potential investors are unsatisfied with the Ethereum protocol due to the issues that have characterized the Proof Of Work (PoW) mechanism. These issues include high energy consumption, congestion of transactions, high gas fees, a slow and extended period of transaction validation, etc.
To address these issues, Ethereum developers have started building the Ethereum 2.0 (ETH 2.0). The ETH 2.0 upgrade has different mechanisms and features than the previous version.
In this article, we shall explain the ETH 2.0, its essential features, and how you can mine the ETH 2.0 on a reliable platform like Gate.io.
Let's begin!
The ETH 2.0 Upgrade
Image: Coin Desk
The Ethereum protocol that deploys the Proof of Work (PoW) mechanism is long due for a total overhaul. It was therefore expected when Ethereum announced that it would transition from the Proof of Work (PoW) mechanism to the Proof of Stake (PoS) mechanism.
The Proof Of Stake mechanism is the most exciting and robust feature everybody anticipates when ETH 2.0 becomes fully operational. Experts regard the transition as the most significant change that will be fully operational by the second quarter of 2022.
The Features Of The ETH 2.0 Upgrade
The upgrade that will see the transition from Proof of Work to Proof of Stake has been a subject of discourse since 2016 in the Ethereum community. Even though the upgrade is not fully operational, some of the expected features have been made public.
They include;
The Operation Mechanism
The foremost feature of the latest version of Ethereum is the Proof of Stake (PoS) operation mechanism. Integrating the PoS mechanism cuts across the entire Ethereum operations, and it will positively change the mining process, transaction procedure, block validation, etc.
The newly deployed Proof Of Stake mechanism will alter the economics of validating the Ethereum token structure. Miners will no longer deploy extensive energies in block validations and solving computational puzzles.
The new mechanism will enable energy conservation and charge less for solving computational puzzles.
Sharding
The ETH 2.0 upgrade will deploy the sharding feature. Sharding is an expansion mechanism of the Ethereum network that will widen the capacity of the transaction processor and ensure transactions are processed by several nodes simultaneously.
In the previous version that used the Proof of Work (PoW) mechanism, the network could store and process a limited amount of data/ transaction at a go. When several miners try to use the Ethereum network, the network gets congested, and every miner will start competing for the available space.
Sharding is expected to eliminate this congestion hassle by distributing data across multiple nodes and ensuring the creation of new blocks on the go. The ETH 2.0 upgrade will use the Shard chain to split the ETH protocol into 64 different chains and distribute the data processing task to all available nodes simultaneously.
Validators And Miners
Another feature of the upgrade is the combination of miners and validators. Instead of mining a new set of ETH, validators will now stake their ETH token to maintain and stabilize the Ethereum protocol on the blockchain network.
The eligibility of becoming a validator is to have a minimum of 32 ETH, stake it and deposit it in an official deposit contract. As a validator, the more blocks you validate, the more profit you get in the new version. The APR of staking interest for a validator ranges from 5 to 10%.
The validator nodes need to be online every hour. If a validator misses a verification task allocated to them by the Ethereum network, such a validator will be fined. If a validator engages in wrong and malicious verification, the network will confiscate the staked 32 Ether.
Currently, validators can not utilize or transfer their staked Ether until the ETH2.0 upgrade reaches the phase1 of full activation.
Having examined how the ETH2.0 upgrade will be deployed and the essential features of the new Ethereum version, we shall explain how to deploy the Gate.io platform for ETH 2.0 mining.
Gate.io ETH 2.0 Mining
The Gate.io is a smart, reliable, and robust cryptocurrency platform that enables you to trade, exchange, swap, and engage in other crypto-related activities.
One of those crypto-related functions provided by Gate.io is the ETH 2.0 mining. This platform offers a flexible ETH2 staking solution to its users.
Gate.io has a stably running Ethereum infrastructure and maturity asset management solution for its users who want to engage in ETH2.0 mining.
To ensure more users participate in the ETH 2.0 mining and make it flexible for these users, Gates.io provides ETH 2 tokens as a voucher for participation.
So when you hold the ETH2 position on the gates platform, you are pledging to participate in the ETH2.0 mining and will get an equivalent of your pledge. For instance, if you pledge 1ETH2, it is equivalent to 1ETH.
To join the ETH 2.0 stake and become a validator via the Gate.io platform is easy. Firstly, you will have to register or create an account with gate.io. The next step is buying or selling ETH2 on USDT and ETH markets for free.
Conclusion
The Ethereum Version 2.0 is in its final development stage, and it will be fully operational after a difficult bomb that is expected to occur by June 2022.
The smart features of ETH2 will ensure faster transactions, reduction in gas fees, elimination of congestion, and a host of other advantages.
In addition, mining will become obsolete, and miners will no longer get enough rewards for their mining activities. Staking and mining in ETH 2.0 will become more complex. However, gate.io has provided a flexible staking solution to its users and eliminated the high entry barriers.
Author: Valentine. A, Gate.io Researcher
This article represents only the researcher's views and does not constitute investment suggestions.
Gate.io reserves all rights to this article. Reposting of the article will be permitted, provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
