To become an Eth validator, you require two resources one 32Eth and the hardware required to run node software. if you don’t have the required 32eth then you can give your money to the staking pool they will add the remaining eth and share the rewards with and take a fee cut.

As most people don’t have 32Eth. Most people are staking with staking pools. This resulted in the centralization of staking.

You can see from the above image that lido is 30%,coinbase is 13% of Ethereum staking network .This posses a treat to the Ethereum ecosystem.

If 1/3rd of the network get hacked then the blockchain can’t get to consensus and new blocks can’t be produced. this also posses chance of censoring the transactions.

Learn how Rocket pool solves this problem.

In a nutshell, to become an Eth validator, you require two resources one 32Eth and the hardware required to run node software. If you only have one resource, then you can provide that resource you have to the Rocket pool and you will earn the staking reward.

Deep dive

To become an ETH validator you require 32 ETH which most people don’t have. Rocket pool allows you to become a validator with as little as 0.01ETH and earns you skating rewards.

Rocket Pool is designed to cater to two main user groups;

User1 - Eth provider

Those that wish to participate in staking using as little as 0.01 ETH.You will transfer your ETH(min 0.01ETH) to the Rocket pool protocol on Ethereum. In exchange, you will receive rEth which will automatically begin earning staking rewards based on the performance of the entire decentralized network of node operators operating in Rocket Pool. This means rETH grows in value over time, while holders can utilize that collateral to leverage the wider Defi landscape while helping to secure the ETH2 network.

User2 - Node providers

With Rocket Pool, running a node only requires a minimum of 16 ETH per validator vs 32 ETH outside of the protocol. Once you deposit 16 ETH, the protocol will assign you 16 ETH from users who are depositing ETH and receiving rETH. So as a node operator you are staking your own 16 ETH and 16 ETH on behalf of the protocol.hence you earn a higher ROI than staking outside of the protocol due to commissions earned.

Action Step

1. If you are a validators use rocket pool.

2. At least share the word to use rocket pool.

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