Ethereum’s New Serenity Protocol Will Reduce Cost of Overhead Staking Nodes.

Ethereum recently performed a new Serenity update which was designed to activate the movement of the network from a PoW (Proof-of-work) consensus protocol to a PoS (Proof-of-Stake) consensus model. This upgrade have been hyped overtime and many have anticipated its launch. Apart from dealing with the issue of scalability, the new chain will also reduce immensely the cost of running a staking node on Ethereum 2.0. This information was made public via a tweet made on November 20, 2018.
The Update will lower the Cost of Staking
Because of the rapid decline in the digital asset market, news relating to technical updates to a number of very popular networks will certainly make the spotlight as it is viewed as good news in the midst of the raging storm. On Oct 31, 2018, Vitalik Buterin. The co-founder of Ethereum talked at length about the upgrade of the Ethereum 2.o and also explained the basic principles of the new network. This he explained at the Devcon4 conference that was held in Prague.
Buterin talked also about the Serenity project that is the PoS (proof of Stake) protocol that the upgraded Ethereum 2.0 would be making use of. In his speech, he provided technical details about the protocol but he also outlined the problems that the upgrade would solve.
How will the new protocol benefit the Platform?
According to David Hoffman, a twitter user who worked for Bunker Capital as a Blockchain researcher, when the Ethereum moves from PoW to PoS protocol, it will take 32ETH to stake. Because staking will replace mining in the new protocol, stakers will now be able to receive block rewards and also reduced transaction fees. These rewards will allow stakers to have a sort of passive income and the users will earn 5% of the total token they staked annually.
It is important to note that the decrease in the price of Ether has impacted this initiative positively. As you may be aware, Ether has decreased in price. This means that the Ether has lost some value meaning that 32 ETH will be worth less than $5,000. This lower price will encourage more stakers to join the network and this will eventually end up building the efficiency of the network.
Buterin further talked about the issues that Ethereum had to contend with while developing the Serenity project. He mentioned some challenges and also stated that they have been able to overcome some of those challenges. He said that the new initiative will certainly be more scalable than the PoW concept.
Ethereum is currently the third asset among the top digital assets in the world. It fell by 3.56 percent in recent times and the market cap is about $13.77 billion and it has a 24 hour volume of $2.79 billion.

About Emily 4 Articles
Hi there! I'm a Passionate and Professional Writer, Editor and Author. I work on a freelance basis and enjoy writing on a wide and varied range of subjects. I graduated in 2014 from York University, Canada and enjoy both factual and creative writing.

Be the first to comment

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.