Ethereum Stacking

Ethereum Staking is the process of participating in the Ethereum network by locking up a certain amount of Ether (ETH) to support network operations like transaction validation and block production. It is a key component of Ethereum’s Proof of Stake (PoS) consensus mechanism, which was fully implemented after the Ethereum 2.0 upgrade, also known as the Merge.

In Ethereum staking, participants, called validators, stake a minimum of 32 ETH to be eligible to validate transactions and add new blocks to the blockchain. Validators are randomly chosen to propose and attest to blocks, and in return, they earn staking rewards (in ETH). If validators act maliciously or fail to perform their duties correctly, they may be penalized or "slashed," losing a portion of their staked ETH.

This system replaces the Proof of Work (PoW) mechanism, making Ethereum more energy-efficient and scalable.