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Educational Post

What Is EigenLayer?

Ethereum transitioned from a Proof-of-Work (PoW) model to a Proof-of-Stake (PoS) system through a series of upgrades. In PoS, users stake their ETH tokens to secure the network. Essentially, they become validators who verify transactions and ensure network integrity. In return for their contribution, stakers earn rewards.

However, staked ETH is temporarily locked, limiting its accessibility. This is where EigenLayer steps in with its innovative approach. This article provides a quick overview of EigenLayer, its core functionalities, pros and cons, and the key differences between traditional staking and EigenLayer staking.

EigenLayer is a protocol built on top of the Ethereum blockchain. It introduced a concept called "restaking collective," allowing ETH stakers to support applications within the Ethereum ecosystem.

EigenLayer creates a dynamic marketplace for decentralized trust. Developers can benefit from the security provided by the collective pool of stakers, while stakers can support the development of their projects.