$ETH

What is Ethereum Proof of Stake?

Ethereum switched to a Proof-of-Stake (PoS) consensus algorithm in 2022 to improve the network’s speed, efficiency, and scalability. Before this change was made, Ethereum used Proof-of-Work (PoW) and a mining mechanism to process transactions. In PoS, instead of mining, users can stake their coins in order to validate transactions and earn rewards.

After the Merge, Ethereum's Mainnet is replaced with the Beacon Chain. On April 12, 2023, the Ethereum Shanghai Upgrade (EIP-4895) added withdrawal functionality.