Ethereum is seeking validation. | Web3 Daily

Did you know:

If you have a computer powerful enough, you can validate transactions on the Ethereum network, and get paid for it?

Here’s how it works in simple terms:

Validators make sure everyone is playing nice when transacting with one another.

If you validate a transaction correctly, you get a cut of the transaction fee.

(The more validators on the network, the more secure it becomes – and vice versa).

But here’s the catch:

You have to stake 32 ETH (~$50K) to become a validator, and for a very long time, there has been no way to un-stake that ETH and get your money out.

Here’s the good news:

That’s set to change in March, with Ethereum’s ‘Shanghai’ upgrade. Which means validators will be able to get their money out; if, and when, they want to.

Here’s what everyone has been worried about:

If too many validators leave at once, the network will lose its security.

(It’s a real possibility when times are tough, and money is tight).

Here’s why that worry is dying out:

Now that validating will (soon) no longer require users to lock up $50K for an undetermined amount of time, new validators are flocking to the network.

So those that do decide to leave in March shouldn’t have too much of an impact on the network.

Nice!