Earn Passive Income With Ethereum 2.0 Staking, Risks vs. Rewards

Ethereum 2.0 is a new version of Ethereum, and it will be launched in the future. The benefits are that there will be no mining process, which means that ether token holders can get their share of rewards by staking their tokens for passive income with an annual return between 6% to 7%. However, once ETH is converted to ether2.0 and staked, it cannot be reversed until the lock-up period.

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How Ethereum2.0 is different than Ethereum

Ethereum is powered by a Proof-of-Work (PoW) mechanism. To earn validate blockchain transactions and earn rewards, participants have to have powerful hardware and keep it running 24/7. Because the ‘work’ they put into the system is directly translated into the rewards, they could receive. Bitcoin is powered by a PoW mechanism too. Therefore headlines about how much bitcoin is consuming energy are not uncommon. The miner has to pay for large electricity bills as it is required to power the hardware. It means that countries with low electricity costs have more mining pools than countries with high…