Proof-of-Stake (PoS)


Originally, Ethereum mined blocks using energy-heavy GPUs (Proof-of-Work). In 2022, it transitioned to Proof-of-Stake, reducing the network's energy consumption by ~99.95%. Users lock up ("stake") ETH to validate transactions and earn rewards.
Gas Fees & Scaling: Because Ethereum is so popular, direct transactions on the main network can sometimes get expensive during peak traffic. To solve this, developers use Layer 2 (L2) networks (like Arbitrum, Optimism, or Base) that bundle transactions together to make them faster and cost cents.
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ETH-4.40%
ARB-5.41%
OP-6.79%
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