By Tobi Loba
An Ethereum developer, Ryan Berckmans, has explained how switching to proof-of-stake (PoS) protocol in the ongoing major upgrade will save ETH holders tens of billions of dollars per year.
According to Berckmans, a relatively $1.3 billion was paid to miners in February, believing that such a high cost would have been significantly reduced if proof-of-stake (PoS) was available.
Read Also: Vitalik Buterin and Charles Hoskinson Hit Adam Back for Criticizing Cardano, Ethereum, Ripple
So, in a nutshell, the developer is optimistic that the issue of high transaction fees that currently plagues Ethereum network will vanish as soon as ETH 2.0 goes live officially.
Ryan Berckmans tweeted, “Proof of stake saves ETH holders tens of billions per year. Last month, proof of stake would have saved ETH holders $1.3b. How? It’s because Ethereum paid $1.3b to miners last month. Proof of stake removes this cost because validators are so cheap that they’re effectively free.”
Proof of stake saves ETH holders tens of billions per year
Last month, proof of stake would have saved ETH holders $1.3b
How? It's because Ethereum paid $1.3b to miners last month. Proof of stake removes this cost because validators are so cheap that they're effectively free.
— Ryan Berckmans (@RyanBerckmans) March 10, 2021
Read Also: Vitalik Buterin: Ethereum 2.0 Benefits Such As 100k TPS Will Come Faster Than People Expect
Danny Ryan Shares What Stakers Must Do To Prepare for Berlin Hard Fork
Ethereum 2.0 coordinator, Danny Ryan, has shared in a blog post released on 11th March 2021, what stakers must do to be Berlin compatible, in order to stay connected.
According to Ryan, stakers need to upgrade their nodes. He described the Berlin hard fork slated for 14th April as an upgrade to the Ethereum proof-of-work (PoW) chain.
In the blog post, Danny Ryan said, “This is a backwards incompatible fork and thus requires updating your software to continue to follow mainnet.”
He further stated that as a beacon chain stakers need Ethereum PoW endpoint to successfully perform various responsibilities as validators.
This functionality serves as the link operating in a single direction between the components of the systems to allow for new validator deposits, Danny Ryan added.
“It follows that, to successfully maintain this link, stakers must upgrade their Ethereum PoW nodes! If you run the Pyrmont testnet, you must upgrade your Goerli nodes before March 17, 2021, and if you validate on mainnet, you must upgrade your mainnet PoW nodes before April 14, 2021.”
Read Also: Ethereum Developer Shares How EIP-1559 and PoS Accrue Value to ETH
Additionally, he recommended that stakers should upgrade their beacon nodes along with PoW nodes:
“There have been many juicy optimizations recently to all mainnet clients. To ensure your validators run with optimal performance (and profitability), pull down the latest release and give it a whirl.”
Follow us on Twitter, Facebook, Telegram, and Download Our Android App