Ethereum staking will be a way for members of our zero fee staking pool to make money from “staking” their coins as a smart contract deposit on the soon-to-be implemented Ethereum Proof of Stake network. ETH stakers will earn a percentage return on their ether deposits in exchange for acting as a block validators that help secure the Ethereum network. ETH stakers will choose a deposit time period of 3, 6, 9, or 12 months in our zero fee Ethereum staking pool.
With proof-of-work public blockchains, including Bitcoin and the current implementation of Ethereum, the consensus algorithm rewards miners who solve cryptographic puzzles in order to validate transactions and create new blocks. Ethereum’s upcoming Casper proof-of-stake implementation depends on sets of Ethereum staking validators to take turns proposing and voting on the next block. The weight of each validator’s vote depends on the size of its ETH deposit.
Ethereum staking will require all block validator nodes to have an economic stake in the network. Anyone who holds a minimum amount of Ethereum can become a validator by sending a special type of transaction that locks up their ether into an Ethereum staking deposit smart contract. The algorithmic weight of each node’s vote will depend on the size of its Ethereum staking deposit.
Ethereum staking validators for the next block are chosen on a pseudo-random basis, weighted by the amount of ether that they are willing to stake. When a validator is selected to validate a block or to propose a set of transactions that should be added together as a new block, they stake ether on their proposal. Validators stake ether on the blocks of transactions that they claim should be added to the public blockchain.
Ethereum staking node owners will have to purchase and hold ETH coins in a wallet for a specific time. With Ethereum proof-of-stake, the more ether you hold, the more ether you will be rewarded over time. As more and more blocks are validated, the validators get a portion of the transaction fees in a way that is similar to earning interest on the ether that they’ve staked. As validators stake ether on valid transactions, they can reclaim their original ether plus claimed interest after some point in time has passed, or when they remove themselves from the validator pool.
Each Ethereum staking smart node must report its server load to the main contract every 15 minutes. Smart nodes will disable other smart nodes that are suffering a DDOS attack, server slow down, or server interruption to prevent any new nodes from being assigned to the bad node, and move any Ethereum staking minipool currently staking on the bad node over to another node.
All of the research and efforts to move Ethereum over to a proof-of-work system are collected under a project dubbed “Casper”. The Casper implementation of the Ethereum staking mechanism requires two-thirds of the validators to agree on a final consensus. Casper requires each validator to place an Ethereum staking deposit that can be lost entirely if a validator acts in bad faith. The security deposit requirement will be around 1500 ETH, thus providing a strong financial disincentive for a validator node to become a bad actor.
“Economic finality” is established when so many nodes have validated a block that the only way that a different block could replace it is if a large number of nodes burn very large amounts of ether. When a node owner sees that economic finality criteria have been met for a block, then the node owner has very strong assurance that the block is valid for Ethereum staking.
The Two Caspers
There are two types of Casper implementation that will be run first on the Ethereum testnet, and then on the Ethereum mainnet. The first Casper implementation, proposed by Vitalik Buterin, is named Friendly Finality Gadget (FFG), and the second, proposed by Vlad Zamfir, is named Correct by Construction (CBC).
FFG is a proof-of-work/proof-of-stake hybrid iteration of Casper intended to gradually move the Ethereum network away from PoW mining. FFG is mostly a regular proof of work, except that for every 50 blocks there is a vote among Ethereum staking nodes termed “finality”. FFG is currently running on the Ethereum testnet and will be pushed out onto the mainnet as part of Constantinople hard fork.
CBC is the second and more complete approach to using Casper to move Ethereum to a fully PoS network. CBC is a full implementation of the Ethereum staking protocol. CBC is much more than simply a layering of PoS onto the Ethereum PoW network. Casper CBC is in the development stage and will not be implemented on the mainnet until sometime in 2019.
Not a Scaling Solution
Casper PoS is not being positioned as a scaling initiative. Casper is more of a fulfillment of a promise that the Ethereum community has made since the very beginning as a way to get rid of wasteful proof-of-work mining. Ultimately there is no simple silver bullet solution to scaling, though Casper will help. Casper will make scaling less difficult in the future because the Ethereum staking network will not rely on miners who tend to become centralized.
ZERO FEE ETHEREUM STAKING POOL
When you join our zero fee Ethereum staking pool, your maximize your gains.
Validator spots on Casper are expected to require a minimum of 1,500 ETH, which at today’s ether price is approximately $700,000. But users of our zero fee Ethereum staking pool can stake as little 0.1 ETH to start earning money on the Ethereum PoS implementation.
Zero fee Ethereum staking pool by the community, for the community.
The implementation of Ethereum PoS will reduce the circulating supply of ether. This will presumably increase the value of ether, which will increase the ability of individuals and businesses to make money when staking their ether with our zero fee Ethereum staking pool.
STAKE YOUR ETHEREUM
When you stake your Ethereum in our zero fee pool, you become part of a far more egalitarian consensus reward distribution system than was ever possible with Ethereum PoW mining pools. Casper will make hashrate difficulty less and less important over time, encouraging decentralization of the Ethereum network, so that when you stake your Ethereum in our zero fee pool, you are earning passive income while also contributing to the security of the Ethereum network.
Casper will use a balance of 1,250,000 ether to attract validators to stake Ethereum. As a member of Ethstaking.io, you can stake your Ethereum and then be paid a return proportional to the total ether that you deposit into our pool. A new hard-fork will be forced when 10,000,000 ether is used up in validator rewards, but until then there will be an estimated 6% interest yield per year over two years during which you can stake your Ethereum on the Casper fork with our pool.
Ethstaking.io will offer a third party API that will allow any business to say to its customers “Stake your Ethereum with us” without needing to setup or maintain any kind of Ethereum staking network infrastructure. This will enable wallet providers, exchanges, banks, and next-generation hedge funds to set up and provide staking services for their customers.
Ethstaking.io is the zero fee Ethereum staking pool by the community, for the community. Stake your ethereum and maximize your gains. To joining our staking pool, please contact us and we will run you through the onboarding process by which you can stake your Ethereum.