Why do I need 32 Ethereum?

However, it is easily understandable that proof-of-stake is more secure and less resource-intensive than proof-of-work, but some drawbacks still need further attention. Although a PoS blockchain has never been hacked, individual nodes have been attacked.

How are rewards distributed? The Ethereum staking reward rate is variable and changes based on the total amount of ETH staked, with a maximum annual reward rate of 18.10% .

Proof-of-work is the mechanism that allows the decentralized Ethereum network to come to consensus, or agree on things like account balances and the order of transactions . This prevents users from “double spending” their coins and ensures that the Ethereum chain is tremendously difficult to attack or manipulate.

With easier hardware requirements and the opportunity to pool if you don’t have 32 ETH, more people will be able to join the network . This will make Ethereum more decentralized and secure by decreasing the attack surface area.