Today, the team of cryptocurrency services application Abra, confirmed it now supports ETH2 staking. With Ethereum’s transition to Proof of Stake, users can stake ETH and generate ETH2 rewards.
Once ETH2 is staked, it is then locked and will remain staked for an indefinite period of time until the Ethereum 2.0 upgrade is complete and Abra enables withdrawals.
The merge between Ethereum 1.0 and Ethereum 2.0 networks is planned to finalize before 2022 ends.
Also known as Ethereum 2.0, ETH2 is designed to be a significant upgrade to the Ethereum blockchain network that consists of sequential phases which will culminate in the transition from Proof of Work (PoW) to Proof of Stake (PoS).
Numerous large blockchain networks such as Cardano, Solana, and Avalanche already use the PoS consensus mechanism.
Ethereum’s shift to PoS aims to improve transaction efficiency, which will result in faster processing times, lower gas fees, and greater security. PoS allows any user to become an ETH2 validator, known as a staker, on the Ethereum network.
By staking ETH2, stakers commit funds that help secure the network and ensure only legitimate transactions are validated. In return for helping to secure the Ethereum network, stakers generate staking rewards in the form of ETH2. The more ETH2 a staker commits, the more ETH2 they receive in rewards.