Ethereum 2.0 is all the buzz nowadays because of the features and perks it comes along with. In short form, Ethereum 2.0 is referred to as ETH2, and a lot of people are showing great interest in buying it. If you don't have a basic understanding of what ETH 2.0 is, then you must note that it is a series of upgrades that were made to the Ethereum blockchain making it way more scalable than its previous version.
Apart from adding scalability to this network, this upgrade makes the network more secure as well as sustainable. But, the one question that arises in the mind of users regarding ETH2 is whether or not they can buy it. If yes, then what is the process to do so?
Well, here in this article, we'll be focusing on getting to know the correct procedure for buying ETH2 and some other important details.
Explore more about Ethereum 2.0
As explained above, this is an upgrade to the existing work model of the Ethereum network. In addition to bringing scalability, security, and sustainability to the network, it also led to a shift from the Proof-of-Work consensus mechanism to the Proof-of-Stake consensus mechanism. So, in short, we can say that whenever you stake ETH it would be the same as Ethereum 2.0 Staking allowing you to earn rewards of up to 4.50% APR.
So, whenever you stake ETH through any platform, it would be then converted to ETH2. This means that both tokens will become one when the upgrade to the Ethereum network is finally completed. This in turn means that there is no direct way to buy Ethereum 2.0 because there is no separate ETH2 token.
Ways to earn rewards by staking on Ethereum 2.0
As said above, there is no direct way to buy ETH2, but, you surely can "stake" your ETH to participate in the staking process on Ethereum 2.0.
The first method you can consider opting for in this case is to run your own validator or validator by staking 32 ETH on the network. On the other hand, you can also stake your ETH using a staking service provider e.g. ConsenSys Codefi. Or, you may also join a staking pool with a lesser number of ETH and receive rewards in proportion to your contribution.
Steps to buying ETH2 through Coinbase
Coinbase does provide the functionality of staking ETH through its platform. If you are not using Coinbase already, then you can follow these steps to stake ETH through it:
- First of all, download the Coinbase app and create an account on it
- Now, you need to add a payment method and navigate to the "Buy" tab
- Then, purchase some ETH by filling in the required details in the given purchase form
- Furthermore, you can enter the amount of ETH you wish to buy
- Then, you can stake your ETH by navigating to the Ethereum portfolio and then convert ETH to ETH2
Conclusion:
The article talks about the role of Ethereum 2.0 in the Ethereum ecosystem. In case you were having doubts regarding this upgrade, then I hope you must have got some clarity in your mind. If not, then you may navigate to the official website of Ethereum i.e. https://ethereum.org/en/roadmap/ and understand its functionality.