ETH 2.0 Staking — How to stake for all levels

How to start staking Ethereum from all ranges of technical skill. And everything you need to know from total beginner to advanced DevOps engineer. We also peek into a popular method people use and how to set it up.

Patrick Collins
Coinmonks
Published in
8 min readDec 11, 2020
How to stake eth 2
Staking with ETH 2.0. Original Image from Yaroslav Danylchenko.

Introduction

ETH 2.0 phase 0 is finally here! And it seems to be going uncharacteristically smoothly for a move of this size. We are starting the first phase of migrating from ETH 1.0 (the current version of ETH) to 2.0. This phase is characterized by running validators for the ETH 2.0 beacon chain. Along with this, we are moving from proof of work to proof of stake. This change means that we are going from having miners -> to having validators, and validators can sign up and start helping secure the network today! Helping secure the network does two massive things:

  1. Helps secure the decentrality and security of the network
  2. Allows you to gain ETH passively

Anyone and everyone can and should participate, but it can be a little daunting to get starting, and there are various levels that you can start staking at. This guide aims to point you in the right direction to participate no matter what level you’re starting at. So let’s jump in and learn how we can get set up and start participating in the network, helping keep it secure, and decentralized!

What even is ETH 2.0?

For a quick background, ETH 2.0 is characterized by 2 main features.

  1. Proof of stake
  2. Sharding

Proof of stake solves this major energy waste that proof of work has, and sharding solves a major scalability issue.

Proof of stake is characterized by validator nodes are used to validate the system. Instead of miners racing to find the cryptographic answer, we have validators propose blocks and if they are dishonest, they are slashed ETH, and their block is ignored. We don’t need to worry too much about this for now, other than that in order to participate we have to “stake” ETH. By staking, we are saying “I promise my node will behave, and I’m willing to bet this…

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Patrick Collins
Coinmonks

Lover of web3 smart contract engineering