Staking Ethereum refers to using staked Ether on the Ethereum network to support the security of other decentralized protocols at the same time.
In proof-of-stake (PoS) blockchains such as Ethereum, the network’s security syncs with the number of active validators, the percentage of circulating tokens staked, and the allocation of these tokens among the active validators. Restaking mechanisms incentivize these staked tokens — otherwise lying inactive — to improve the overall functioning of the blockchain.
This article discusses what restaking is, the types of restaking, how liquid restaking works, collective security using staked Ether and concerns regarding restaking.
Restaking presents a novel concept in cryptocurrency security, enabling stakers to use their Ether (ETH) in the consensus layer more than once. It allows stakers to increase their rewards while strengthening the security of the staking network by facilitating the deployment of liquid staking tokens with validators across several networks.
