Learn how Ethereum is moving from PoW to PoS
The process will take many months, possibly years, but Ethereum’s move from a proof-of-work to a proof-of-work blockchain has begun.
But for the transition to start in earnest, at least 524,288 ETH needs to be staked through the Eth2 Launch Pad interface. That’s 32 ETH per each of the 16,384 validator nodes required for Phase 0 of Ethereum 2.0 to launch.
So far, only around 10% of this total has been staked, although the rewards – an annual return of 21.6% – are enticing, at least for those with the financial and technical rewards to gain them.
Once this goal is reached, however, Phase 0 will launch, which will see the basic network infrastructure up and running.
Phase 1 will see the nascent Eth2 blockchain handling on-chain data for the first time.
Perhaps the most exciting stage will be Phase 1.5, when the Ethereum 1.0 is rolled into Eth2 as the first shard running the proof-of-stake consensus.
Only then can Phase 2.0 start. That’s when multiple shards launch and Ethereum fulfills its ultimate potential with its much-anticipated performance boost, allowing it to compete with the next generation of blockchains such as Solana, Cosmos, Cardano, and Polkadot.