Ethereum 2.0 is the long-awaited update with whispers that it could be ready before the end of this year. But why does it matter, and how will Ankr be better because of it?
What’s the big deal about Ethereum 2.0?
The focus of every mainnet update has always been to improve the usability and performance of Ethereum, and it certainly has with updates like Homestead from 2016 all the way to the current phase, Istanbul.
However, Ethereum 2.0 looks to shift the network in a huge way by changing the consensus mechanism from the well-known Proof of Work (PoW)to Proof of Stake (PoS).
The problems with Proof of Work
The reason Ethereum is opting to switch over is not a concern of security — Bitcoin’s network is the strongest network without a question. Where PoW struggles is in term of scalability and accessibility coupled with Ethereum’s desire for decentralization.
Scalability concerns occur because there will always be a finite amount of transactions you can fit into a block, regardless of the block size. Then, in Bitcoin’s case, you have to wait another ~10 minutes.
Ethereum’s 2.0 Sharding fixes this problem, by allowing 64 “shard chains” to run in parallel and interoperate, allowing for 64 blocks to be processed at once — exponentially increasing transaction capacity for not only mainchain transactions but all the DApps that rely on the network.
As the network gets larger, you need more hardware to make even a 1% increase. Therefore, Bitcoin has continued to rely on a smaller and smaller core of companies for network security.
This means home miners can’t participate, and thus the security becomes more centralized.
Ankr lowers the barrier even further
While a shift from PoW to PoS means more people are able to help validate blocks and participate in being rewarded, the current threshold to become a validator is 32 ETH, roughly 8,000 USD.
So while a shift from PoW to PoS lowers the barrier from needing tens of thousands to just thousands dollars worth, it is still quite restrictive.
We at Ankr took matters into our own hands and announced on May 27th that we will be supporting Ethereum 2.0:
With Ankr, everyone from the lone crypto enthusiast to the entrepreneur can be join the network to earn ETH!
By staking 32 ETH, having your own node is just a few clicks away! There is no need to go through any technical documentation, and you will enjoy great uptime and stability.
The alternative is to join a low-fee staking pool with Ankr where users can pool their ETH together and earn from the pool rewards.
Why Stake with Ankr?
Besides the efficiency and ease that comes with our distributed cloud network, which our numerous partners have come to know and trust, why should you stake with us?
- Automated management to make managing deployments easier.
- Special incentives when paying in Ankr tokens.
- Cheaper than any staking pool competitor.
And we have compiled a special task force specifically for ETH 2.0 and our node user experience!
Massive amounts of marketshare!
Mining, whether it’s PoW, PoS, or some other method, is an extremely competitive endeavour. Only those with the lowest fees, highest returns and most consistent performance stand a chance from a business perspective.
With Ankr being the first of its kind Web 3.0 infrastructure provider, we have already shown our worth by providing nodes for Binance, Celo, Elrond, Harmony, Matic, Polkadot and dozens of other projects.
As Ethereum 2.0 deploys and validators look for the leader in node deployment, eyes will naturally turn to Ankr!
Follow Ankr on social media
- Website: https://www.ankr.com/
- Twitter: https://twitter.com/ankr
- Telegram announcements: https://t.me/anrknetworkann
- Telegram chat: https://t.me/ankrnetwork
- Telegram Node Support: https://t.me/AnkrNodeSupport
- LinkedIn: https://www.linkedin.com/company/ankr/
- Instagram: https://www.instagram.com/ankr_cloud/