Abstract

This paper provides an analysis of staking Ether (ETH) within the Ethereum ecosystem, exploring the operational mechanics of Ethereum’s Proof-of-Stake (PoS) consensus mechanism. It discusses the various staking options available, such as solo staking, staking pools, liquid staking, and exchange staking. The study examines historical and current staking yields, presenting a case study to illustrate the staking process and potential returns. Additionally, the paper evaluates the advantages and disadvantages of staking Ether and considers future developments and regulatory implications. This comprehensive analysis aims to offer insights into staking as a method for earning passive income and contributing to Ethereum’s network security.

Keywords: Ethereum, Staking, Proof-of-stake, Cryptocurrency, Blockchain, Decentralized Finance (DeFi)