In the first months of the second half of 2022, the Ethereum network underwent a gigantic process that caught the attention of everyone involved in the cryptocurrency world, called The Merge.
This event is a gigantic update that is actually an implementation of new rules for validating transactions on the network. When this implementation actually takes effect on the network.
Ether will no longer be mined by the already known and hitherto used Proof of Work system, thus giving space for its evolution that would be the Proof of Stake, thus completely changing the rule of match.
The change that this brings is basically that there will be no more ETH mining performed by data processing capacity. As was done until then, starting to be done by Stackers users of the Ethereum cryptocurrency.
In turn, these so-called “Stakers”, are investors who use their own balances to be chosen as validators for new blocks of transactions on the network. Receiving Ether as a reward for helping to keep the network safe and, of course, up and running.
Basically to become a Staker and now also a validator, the user/employee must separate. So and send the amount of 32 ETH (currently around US$41 MIL). To the smart contract on the Blockchain on the Ethereum network.
This contract will retain this value from the user, making it impossible for it to be used for a pre-established period of time. And with that, the user will have the right to be randomly chosen for validations and receive rewards in Ether.
Indications point out that the Stake should yield to the investor something around 5% to 10% per year of the amount invested, other than that, of course, the percentages earned by validation.
Leaving it a little more attractive for validators, thus dispensing with the use of mining rigs popularly used for the old validation. Method from the beginning of the network until the end of this first half of 2022 when the Proof of Stake method took effect.
With this new method of operation, in-depth knowledge of programming is dispensed with. But in any case it is always important to know the basics of network contract documentation and understand how stakes and other cryptocurrencies functions.
In any case, cryptocurrencies are always a risky bet, if you are thinking about entering this world. It is always good to study the market first and without a doubt its risks in order to maximize your profits and avoid losses.