SafeStake

One of the big problems of the 21st century is energy consumption due to the technological progress of the modern era, and the addition of Bitcoin in 2008, along with the excessive consumption of fossil resources, the principal energy source of the world, the list of problems that condemn the planet to worsen climate change only seems to expand.Despite the differences between analysts and experts on the energy consumption of cryptocurrencies and public blockchain networks, like Bitcoin and Ethereum (concerning that consumed by the traditional financial system); Big debates are surfacing today about the need to eliminate the “high energy consumption” label that some have used as a flag to criminalize the decentralized financial system imposed mainly by Bitcoin and Ethereum blockchain. <img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/11a0e279d20f4a07b1384a0632a48bf8.png" />Part of this paradigm shift was being discussed for a long time by the Ethereum team table until it decided to make a radical change in its mining, a change leading the principal blockchain network after Bitcoin to plunge into an ‘ecological wave’ without risking the security and decentralization of its network, being the most important in terms of numbers of use cases deployed in its ecosystem.According to the latest estimates from <a href="https://archive.is/q3EW4" rel="noopener noreferrer nofollow">Digoconomist</a>, last year the energy consumption of the Ethereum blockchain network skyrocketed to an annual average of 113.01 TWh, comparable to the power consumption of the Netherlands.Despite how high this may seem, the most relevant blockchain network in the ecosystem by number of Dapps is still far from being compared with the energy consumption required for traditional banking, calculated at more than 200 TWh/yr. <img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/675fbc09593f4e4cbf21ac27f2040a6f.png" /><h2 id="header-0">Sustainability: Proof-of-Stake (PoS)</h2>Ethereum has plans to change its proof-of-work algorithm to an energy-efficient proof-of-stake algorithm called Casper. This change would minimize energy consumption and will be implemented gradually according to the most recent roadmap. <img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/8389a529fe44456096a779ea06638ebf.png" />Currently, Ethereum continues to run under the PoW consensus mechanism, which uses an average of 64 kilowatt-hours (kWh), 11 times less than Bitcoin, which also runs under the same consensus algorithm.By the end of 2022 and the beginning of 2023, “The Merge” event is expected to occur within the Ethereum 2.0 roadmap, where a network-wide transition to a different consensus mechanism will theoretically allow the use of 99% less energy than Ethereum currently requires to keep alive its ecosystem of decentralized applications deployed on its blockchain network. <img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/198e997ad8aa47ddb13f72fe7ed5d67e.png" />It has been six years since the conception of this idea for a radical change that will be incidental, and its the first time that it is carried out in a highly relevant public blockchain network and and in a crucial moment like the one we are experiencing now with the growing interest of users and venture capital firms investing in the blockchain industry.And precisely thinking about that bright future of development and adoption of applications executed under a Web3 environment, a futuristic to execute applications in decentralized blockchains, is one of the compelling reasons that have led developers , and his main mentor (Vitalik Buterin) to consider this change. <img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/7cb559117d9a4e91af9405bc2550542c.png" />On the other hand, let us remember that Ethereum suffers from scalability problems due to its rigid architecture under a language like Solidity that doesn’t allow futuristic integrations, like dynamic dapps and high demand under the Web3 scheme; facts that were evident in the midst of the CryptoKitties crisis of 2017 and that we have seen to a lesser extent in other opportunities with high transaction fees.The above, in addition to:<ul><li>The sustainability of an ecosystem that revolves around Ethereum.</li><li>A scalability demanded by the needs of the market and the companies that bet on the sector using a state-of-the-art architecture with eWASM as the main driver;</li><li>The urgent need to demonstrate that cryptocurrencies, and especially the Ethereum blockchain, are not immune to the environment problem derived from excessive energy consumption, which is often exaggerated.</li></ul>They are part of the fundamental reasons for the change of Ethereum from the Proof-of-Work (PoW) algorithm to the Proof-of-Stake (PoS) consensus mechanism to achieve the sustainability of both its ecosystem and the industry in general over time.Ethereum PoS merge: New opportunities in the industryIf we can fully state one thing, it is that cryptocurrencies and blockchain technology, in particular, are here to stay. And Ethereum, being one of the forerunners of this new technological revolution with its ability to be programmed using smart contracts, will continue to be one of the dominant ecosystems within the industry. <img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/47e661f2097e4ca690b4601ea54edf77.png" />Consequently, any paradigm shift, technological improvement, or implementation in its network, has a significant impact on a market that is still quite young compared to the traditional financial sector.With DeFi, NFTs, Metaverses and the applications around the new Web3 in a clear trend of increasing use by newbie users and those already consolidated in the industry and the improvement of Ethereum, popularly called ETH 2.0, has a lot to offer to the industry.To understand the context of its importance, just look at the number of applications deployed in its ecosystem, which according to <a href="https://dappradar.com/rankings/protocol/ethereum" rel="noopener noreferrer nofollow">DappRadar</a> exceed 3.000, moving more than $31.11B dollars in volume on this blockchain network.And within this volume, there is an important sector such as staking, which to date represents a key portion for the new Ethereum 2.0, with more than $25.47B in staked value (13% of the total <a href="https://www.stakingrewards.com/" rel="noopener noreferrer nofollow">PoS MarketCap</a>)<img src="https://miro.medium.com/max/1400/0*HU84BGmG4z2eG6hU" />With its new ETH 2.0 enhancement, staking on the new Ethereum ‘Beacon Chain’ is becoming one of the most stable and secure ways to generate passive income, even before its protocol finally arrives under the new consensus mechanism during the so-called ‘Merge’.SafeStake : Democratizing access to Ethereum 2.0 StakingAs we have mentioned, the relevance of Ethereum 2.0 Staking in the industry is gaining traction as the date of the next ‘merger’ approaches where the most relevant change of this new Ethereum update will happen, introducing the implementation of PoS in its network blockchain.Given the relevance that we have previously discussed in this post of Ethereum in the industry, it is not unreasonable to take part in the opportunities that ETH 2.0 Staking is already offering for ether holders.And it is precisely in this plane where SafeStake plays a significant role in bringing to the greatest possible number of users and investors the possibility of generating passive income with the new ETH 2.0 Staking.<img src="https://miro.medium.com/max/954/0*SxcG7BxAHwvu60Qm" />SafeStake is powered by ParaState, a multi-chain blockchain platform that implements eWASM to deliver a set of capabilities and future improvements in Ethereum 2.0, the main difference being that developers don’t have to wait for the ETH 2.0 improvements to arrive in the industry.With this foundational technological improvement, SafeStake is a trust minimized middle-layer fostering the decentralization of ETH 2.0 Staking.One of the big problems that we have observed in the implementation of staking in the new ETH 2.0 is the high barrier of entry required to be a validator in this network and take part in the rewards implemented in the new mining mechanism PoS.<img src="https://miro.medium.com/max/1400/0*oYqr5rznVw8AMtie" />To date, 32 ETH, an approximate $64,000, are required to exercise this option. SafeStake is managing to lower this requirement to an accessible amount of at least 8 ETH.In addition, validators require intensive work and technical sophistication that many prefer to ignore by delegating this function despite having the resources in ETH to a few validator nodes.On the other hand, centralization is being observed dangerously in ETH 2.0, given that a few validator nodes are in charge of securing the network, even with the potential dangers that this means for a blockchain network.Motivated by this, SafeStake is allowing more entities to join the ETH 2.0 Staking by lowering the requirements both in terms of technical knowledge and resources in ETH to participate in the assurance of the principal blockchain network of the ecosystem by use cases.<img src="https://miro.medium.com/max/1046/0*SrqoQfO_zj54KdWs" />SafeStake to design a more robust and secure staking protocol for ETH 2.0, will allow the validators to split the validation key into several shares to distribute to several operator nodes.As a result, the proposed scheme of SafeStake will reduce the security risk since none of these operators can recover the validation key, and the adversary will have to compromise enough operators to launch a successful attack.Strong staking with SafeStakeSafeStake is not only determined to improve the security of the ecosystem that will revolve around ETH 2.0 by including as many new players as possible its set of validators, but it also offers a robust solution for this activity thanks to its implemented technical benefits.Being a middle-layer for ETH 2.0 Staking, it needs a high-performance source code to handle large amounts of data and resist malicious actors’ attacks. SafeStake code is written in Rust, giving that is the first option to prevent memory-related bugs and vulnerabilities.Rust is more efficient in processing large volumes of data and other CPU-intensive operations, which is a perfect fit for SafeStake with its low barrier entry for ETH 2.0 Staking and with the possibility of its demand growing in the immediate future as it becomes popular in the ecosystem.<img src="https://miro.medium.com/max/1400/0*D3I_RAFml-70PzMP" />Not least, SafeStake runs under the HotStuff consensus protocol by design, which is more robust compared with the qBFT/iBFT protocol, and helps minimize the validators’ slashing odds.Ethereum 2.0 Staking punishes validators who are not online during the PoS network validation requirement, so an unstable consensus protocol can cause significant losses for validators and users ( investors) who participate in the new ETH 2.0 mining through delegated staking.Final ThoughtsThe new staking service for Ethereum 2.0 provided by SafeStake is one of the most democratic options available in the ecosystem today.With its high technological performance due to the type of language used in its source code and the backup that ParaState is giving to the project through its DAO, there are compelling reasons to take part in the emerging market around ETH 2.0 Staking.Given the importance of the Ethereum network for the blockchain industry, participating as a holder user in its development, assurance and performance of its mining based on the PoS consensus mechanism can be one of the most exciting ways to get involved in one of the most relevant milestones in the industry.SafeStake’s design is to be perceived as a democratic gateway to staking in Ethereum 2.0 based on an environmentally friendly and censorship-resistant consensus mechanism.About ParaStateParaState is a multi-chain smart contract platform that provides full compatibility between Ethereum, Polkadot and other Substrate-based chains, among other chains wanting to provide Ethereum compatibility through its next-gen runtime infra EWASM.Parastate is participating in ETH2.0 Staking with a new tech stack called SafeStake, a trust-minimized, middle-layer fostering the decentralization of ETH2.0 staking. SafeStake is a non-custodial infrastructure for distributed validator technology written in Rust, implementing HotStuff consensus and Threshold signing architecture to provide more robust security for ETH 2.0 staking. <a href="https://www.parastate.io/" rel="noopener noreferrer nofollow">Website</a> | <a href="https://medium.com/ethereum-on-steroids" rel="noopener noreferrer nofollow">Blog</a> | <a href="https://twitter.com/_ParaState" rel="noopener noreferrer nofollow">Twitter</a> | <a href="https://t.me/ParaState" rel="noopener noreferrer nofollow">Telegram</a> | <a href="https://discord.com/invite/zFS3Mnfpwj" rel="noopener noreferrer nofollow">Discord</a> | <a href="https://github.com/ParaState" rel="noopener noreferrer nofollow">Github</a>

What Relevance Does PoS Have For The Blockchain Industry And Why Will Ethereum Use This New Consensus Algorithm

Table of Contents

SafeStake

Other articles published on Jun 5, 2022

SURVIVAL MODE HAS OPENED

What Is P2P Trading And How To Choose The Best P2P Platform?

World is adopting #Felix and sends her to the Mars 🚀

PURCHASING SHOP - WHAT'S SPECIAL?

TIP-4 NFT SDK

CALLING CONTENT CREATORS, WIN $CMP COINS & LIMITED EDITION NFTS

Join our free newsletter for daily crypto updates!