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Consensus & Execution Layer Rewards
Ethereum's proof of stake architecture generates rewards in both its execution layer and consensus layer through staking.
In the execution layer, stakers are responsible for verifying and executing transactions. They do this by running software called a node. Nodes are essentially computers that connect to the Ethereum network and process transactions. Stakers are rewarded for their work with transaction fees.
- Stakers run nodes to verify and execute transactions.
- Nodes are rewarded with transaction fees.
- The more nodes that are active, the more secure the network is.
In the consensus layer, stakers are responsible for validating blocks. Blocks are groups of transactions that are added to the Ethereum blockchain. Stakers validate blocks by checking to make sure that they are valid and that they follow the rules of the Ethereum protocol. Stakers are rewarded for their work with block rewards.
- Stakers validate blocks to ensure that they are valid and follow the rules of the Ethereum protocol.
- Stakers are rewarded with block rewards.
- The more stakers that are participating, the more secure the network is.
The amount of rewards depends on various factors, including the amount of ETH staked, staking duration, and the overall performance of the Ethereum network. The rewards that stakers earn are used to secure the Ethereum network and incentivize participation. By staking ETH, stakers help to ensure that the network is secure and that transactions are processed quickly and efficiently.