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After confirming the genesis block of Ethereum 2.0 in the test network, an enthusiast of this platform launched a Proof-of-Stake (PoS) consensus protocol profitability calculator or Proof of Participation.
Before going into details, it is important to note that the results given by this calculator are not effective, since it is not the definitive version of the Ethereum 2.0 network, it is only a test and development network, as announced in recent days. .
The tool can be found on the EthereumPrice.org website, and this allows calculating the reward generated by making staking (participation) on the Ethereum network for up to 10 years, being able to emulate the results by inserting different variables. For example, you can define the amount of time that a validator node remains active, the amount of ETH stored and the hypothetical price of the cryptocurrency in fiat currencies such as USD, EUR and JPY, among others.
Likewise, the site explains that the amount of ETH retained plays a fundamental role in calculating the annual return of the validating nodes, because “the higher the percentage of ETH retained (with respect to the total circulation of the cryptocurrency), the lower the return of this investment ». Thus, they remember that the reward would not be released until it reaches the amount of 524,288 ETH retained in the PoS.
The data is taken from the company ConsenSys, Ethereum development incubator, but the calculator has no formal relationship with the company and is a User Interface that can be freely implemented in other environments. The method behind how the calculator works is a Google Spreadsheet created by Colin Myers of ConsenSys Codefi.
As we can prove, if a validator node is available 99% of the time, with the price considered by the tool (USD 193.34), the annual return for retaining 32 ETH it would amount to about $ 7,080 the first year and $ 23,514 after 10 years. The annual interest would be 14.26%.
However, they clarify that the calculator does not include any operating cost to run a validator node, despite noting that this price is relatively low.
The operating costs to consider include the storage of a Virtual Private Server (VPS) -for home environments- or the cost of buying hardware such as the Raspberry Pi and paying for its electricity consumption, in addition. The operational costs of running an Ethereum validator node on the Proof of Stake are tiny compared to the costs of maintaining a Proof of Work miner.
EthereumPrice.org
The calculator has a Telegram group where doubts are clarified and discussions are held about Ethereum 2.0.
The Ethereum 2.0 test network issued its genesis block on April 16, as announced by the company Prysmatic Labs, which is behind its development. This update of the well-known protocol will bring about a change in its consensus algorithm, from Proof of Work to Proof of Participation, which other platforms such as Cardano use, with the aim of simplifying the operation of the network, promoting the conditions for its constant upgrade and reduce the cost of transactions.
Currently, the Ethereum 2.0 test network has approximately 22,800 active validator nodes, according to the EtherScan.io browser, which can have an effective participation of up to 32 ETH, but will only receive the reward equivalent to their work for no more than this amount. from ETH.
Meanwhile, all preparations are made for the definitive launch of the network, with programs offering up to USD 10,000 for discovering errors in the protocol.
