Ether Staking

Definition ∞ Ether staking is the process by which holders of Ethereum’s native cryptocurrency, Ether (ETH), lock up their assets to support the network’s security and operations. By doing so, they become validators, participating in the proof-of-stake consensus mechanism and earning rewards for verifying transactions and proposing new blocks. This mechanism replaced the energy-intensive proof-of-work system. Staking is a fundamental component of Ethereum’s post-Merge architecture.
Context ∞ Crypto news regularly covers developments in Ether staking, including changes in reward rates, liquidity solutions for staked ETH, and regulatory considerations. The Shanghai upgrade, which enabled withdrawals of staked Ether, was a significant event impacting market dynamics and investor participation. The ongoing discussion revolves around the decentralization of staking pools and the overall security implications for the Ethereum network.