Ethereum Abandons Proof-of-Work Mining for Energy-Efficient Staking

Ethereum has transitioned from proof-of-work mining to proof-of-stake staking. This shift was completed in 2022, following a series of milestones that began with the launch of staking on December 1, 2020.

Staking is a consensus mechanism where validators lock up Ethereum (ETH) to propose new blocks and attest to the state of the chain. Validators must hold at least 32 ETH to participate, although some pools accept as little as 0.01 ETH. The process rewards honest behavior, with validators earning returns for their participation.

The shift away from mining was motivated by two key factors: energy consumption and security. Staking nodes use significantly less power than mining rigs, reducing the network's overall carbon footprint. Additionally, an attacker would need to control a majority of staked ETH to threaten the network, making it more secure.