2021-03-24 21:19:43

How to Stake Ethereum on Kraken • Benzinga

Ethereum’s blockchain has become inefficient and expensive to use. Ethereum can only handle about 15 transactions per second and can cost investors anywhere from $10 to over $100 per transaction.

In December 2020, Ethereum launched its Ethereum 2.0 beacon chain. Eth 2.0 aims to solve the problem of scalability by switching to a Proof-of-Stake mechanism, as opposed to its current Proof-of-Work model that works in a similar way to Bitcoin.

Proof-of-Stake replaces cryptocurrency miners (used in PoW) with token staking. By staking Eth tokens on the network, you can earn interest on your Ethereum while helping secure the Ethereum blockchain. Although Proof-of-Work and Proof-of-Stake consensus models may seem confusing, it’s a relatively simple process to stake Ethereum and earn interest on your tokens.

Step 1: Make a Kraken Account

You’ll need to create an account on Kraken’s website to begin earning interest on your Ethereum tokens. To make an account, you’ll need to enter your email address and create a username and password. Next, verify your email address with an activation code sent to your email.