Numerous solutions have been proposed to increase Ethereum’s capacity and improve network efficiency. EigenLayer aims to enhance Ethereum’s existing staking infrastructure and enable it to support other blockchains that use Proof of Stake consensus mechanisms.
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What is EigenLayer (EIGEN)?
EigenLayer is a “restaking” protocol built on Ethereum. It enables existing staked assets (such as ETH) to be reused to help secure other networks. Through the restaking concept, participants who have already staked their assets can earn additional passive income on top of their current staking rewards.
The key innovation of this system is that it strengthens the security of decentralized networks while making the staking economy more sustainable. In traditional staking, users can only secure one network with their staked ETH, but with EigenLayer, the same assets can be utilized across multiple projects. This offers a modular and flexible solution for enhanced security.
How Does EigenLayer Work?
Participants who stake ETH on the Ethereum network can, while securing their assets, also stake their ETH on other networks through EigenLayer. This enables other Proof of Stake projects to leverage Ethereum’s user base and liquidity, potentially elevating their security to the same level as Ethereum’s. The larger and more diverse the number of nodes on a blockchain, the greater the network’s decentralization and, consequently, its security.
Since new projects may take time to build a large user base, they can leverage Ethereum’s audience through EigenLayer. Because users’ staked ETH assets remain untouched, Ethereum’s infrastructure is not negatively affected. At the same time, strengthening the security infrastructure of new projects both incentivizes entrepreneurs and helps minimize users’ exposure to security risks.
Key Facts About EigenLayer (EIGEN)
- EigenLayer was founded in 2021 by Sreeram Kannan.
- It is a restaking platform built on Ethereum.
- EIGEN is EigenLayer’s native cryptocurrency.
- EIGEN tokens can be staked, enabling users to vote on platform changes and participate in various operational functions.
- The EIGEN token is used for voting rights, incentives, and penalties.
- You can visit EigenLayer’s website by clicking here, and for more detailed information, click here.
How to Store EigenLayer (EIGEN)?
You can store and manage your EIGEN assets using browser, desktop, mobile, and hardware wallets that support the Ethereum blockchain.
How to Buy and Sell EigenLayer (EIGEN)?
You can buy and sell EigenLayer (EIGEN) with Tether (USDT) using the BtcTurk | Global website or mobile app. If you’re not yet a member, you can easily register on our website or app and buy EigenLayer (EIGEN) by depositing cryptocurrency.
