Binance Square is pleased to introduce a new “Share to Win” activity, where all verified Binance users can share Square content to unlock over $35,000 worth of rewards. 

Activity Period: 2024-04-08 09:00 (UTC) to 2024-04-15 09:00 (UTC)

Activity 1: Share Binance Square Links With Your Referrals to Get Up to 5 USDT in Crypto Red Packet
To participate in this Activity, verified Binance users may login to their Binance accounts and share any Binance Square link(s) with their friends during the Activity Period. 
Verified new referrals who sign up with Binance after opening the user’s Binance Square link(s), as well as verified existing referrals who are logged in to their Binance accounts, will unlock Crypto Red Packet(s) worth up to 0.5 USDT each for both themselves and their corresponding referrer upon clicking on the shared Binance Square link(s). 

Please note that each referrer may claim a maximum of one Crypto Red Packet reward per referral via the Binance App during the Activity Period, and up to ten Crypto Red Packets (i.e., a maximum of 5 USDT in Crypto Red Packet) from this Activity.

Tip: Users may unlock Crypto Red Packets containing greater rewards by ensuring that their friends sign up with Binance after opening the Binance Square link(s) sent and complete account verification.

Activity 2: New Users Only - Sign Up With Binance & Complete Tasks to Earn Up to 5.5 USDT in Rewards
In addition, new users who sign up with Binance via the activity page may click on the
[Go] button on the page and complete any of the following task(s) during the Activity Period, to get up to 5.5 USDT in rewards. Rewards are limited, and will be distributed on a first-come, first-served basis. 

1. Click into any ten unique Binance Square links while being logged in to your Binance accounts.
2. Complete a trade of at least $100 equivalent on Spot, Futures, Margin, Options or Convert.
Terms & Conditions
This activity may not be available in your region. The rewards for both Activities are distributed on a first come, first-served basis, with limited redemptions available.Users may qualify for rewards from both Activities where applicable. The rewards for both Activities are not mutually exclusive.There will be caps imposed on the amount of rewards available to eligible users per country/region.Users must be logged in to their verified Binance accounts whilst completing tasks during the Activity Period in order to qualify for any rewards from Activity 1 and/or Activity 2.Activity 1:Users may only receive a maximum of one Crypto Red Packet reward from each unique referral. Please note that users may redeem multiple Crypto Red Packet rewards from different unique referrals within the same day.Crypto Red Packets will be distributed to eligible users immediately upon meeting the necessary requirement(s). Users should redeem the Crypto Red Packets to their Funding Wallets via the Binance App before the Activity ends. Please note that all unclaimed Crypto Red Packets will be forfeited after the Activity ends. Activity 2:Only new users who register with Binance via this activity page will be eligible to participate in Activity 2. Rewards for Task 1 will be distributed in the form of Crypto Red Packets to eligible users immediately upon meeting the necessary requirement(s). Users should redeem the Crypto Red Packets to their Funding Wallets via the Binance App before the Activity ends. Please note that all unclaimed Crypto Red Packets will be forfeited after the Activity ends. Rewards for Task 2 will be distributed in the form of token vouchers to eligible users within 14 working days after the Activity ends. Users will be able to log in and redeem their voucher rewards via Profile > Rewards Hub. Token vouchers will expire by 2024-05-15 09:00 (UTC). Learn how to redeem a voucher.Illegally bulk-registered accounts or sub-accounts shall not be eligible to participate or receive any rewards. Binance reserves the right to cancel a user’s eligibility in this activity if the account is involved in any behavior that breaches the Binance Square Community Management Guidelines or Binance Square Community Platform Terms and Conditions.Binance reserves the right at any time in its sole and absolute discretion to determine and/or amend or vary these terms and conditions without prior notice, including but not limited to canceling, extending, terminating or suspending this activity, the eligibility terms and criteria, the selection and number of winners, and the timing of any act to be done, and all participants shall be bound by these amendments.Binance reserves the right of final interpretation of this activity.There may be discrepancies in the translated version of this original article in English. Please reference this original version for the latest or most accurate information where any discrepancies may arise.

Key Takeaways

EigenLayer is a protocol that enhances Ethereum's Proof-of-Stake system by allowing users to 'restake' their ETH.

EigenLayer's approach uses modular security, enhancing the flexibility and functionalities of staked ETH through a concept called "restaking collective".

Challenges include increased complexity, potential centralization risks due to staking pool dominance, and collusion threats within the module-based design.

Introduction

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.

What Is EigenLayer?

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.

How Does EigenLayer Work?

Modules

EigenLayer introduces a modular security approach. It allows stakers to contribute their ETH to secure specific functionalities within the network. These functionalities are generally referred to as modules.

For example, a module might be dedicated to securing decentralized storage solutions like Arweave. Some modules could secure in-game items within blockchain-based games. Others could foster trust within DeFi applications like Aave.

Smart contracts

Ethereum stakers can restake their staked ETH via EigenLayer smart contracts, offering a new set of security and validation services to specific modules in the network. This is achieved by granting EigenLayer contracts the ability to set certain conditions on staked assets.

Restaking 

EigenLayer restaking can be done in two different ways: 

1. Solo staking. Users can operate their own nodes and actively validate transactions for the modules. This method is more suitable for advanced users.

2. Delegation. EigenLayer also allows delegating the node operation to other participants within the network. This is a convenient option for users who want to contribute to EigenLayer while avoiding the technical aspects. 

Staker diversity 

EigenLayer recognizes that stakers may have different preferences and capabilities. Some can have powerful computers suitable for solo staking, while others may prioritize convenience through delegation. 

Additionally, stakers may have different risk tolerance levels. EigenLayer allows modules to adjust their requirements to match specific stakers, fostering a more flexible network.

Traditional Staking vs. EigenLayer Staking

EigenLayer disrupts the traditional staking on Ethereum, offering a unique approach with its "restaking collective" concept. Let’s take a look at the key differences between traditional staking and EigenLayer staking.

Liquidity

In traditional staking, staked ETH becomes temporarily locked. While the staked ETH is locked, stakers can’t use it. In contrast, while the underlying ETH remains staked, EigenLayer allows users to leverage it for additional purposes. For example, stakers may use it to increase the security of various applications being built on Ethereum.

Participation and rewards

When it comes to traditional staking, participation is relatively straightforward. Essentially, users lock up their ETH and earn rewards based on the staking protocol they choose. 

In contrast, EigenLayer offers a wider range of participation options. Users can choose between solo staking or delegation. Delegation might be a better choice for users who don’t have advanced technical knowledge of cryptocurrencies. 

In addition, EigenLayer staking can potentially be more rewarding. Modules with higher security needs might offer greater rewards for stakers who secure them.

Security focus

In traditional staking, staked ETH directly contributes to the security of the Ethereum blockchain. In EigenLayer staking, security becomes modular. Users can contribute to the security of specific modules within the Ethereum ecosystem. The overall security of a module generally depends on the collective staking power directed towards it.

Pros and Cons of EigenLayer

Pros

1. Enhanced security for DApps. By leveraging a pool of validators for various modules, EigenLayer strengthens the overall security of decentralized applications (DApps) built on those modules. This fosters a more trustworthy environment for users interacting with DApps.

2. Testing ground. EigenLayer acts as a platform for testing and validating new Ethereum functionalities before integrating them into the mainnet. This lets developers experiment with innovative ideas like danksharding, a core feature of the Ethereum Cancun upgrade.

3. Permissionless innovation. Developers no longer need to build their own validator sets to secure their applications. Instead, they can leverage the existing pool of secure validators offered by EigenLayer through restaking. This generally lowers the entry barrier for developers and fosters more innovation on Ethereum.

Cons

1. Complexity. EigenLayer introduces a new layer of complexity to the Ethereum ecosystem. Understanding how restaking works, choosing the right modules to participate in, and managing the technical aspects (for solo stakers) can be challenging for some users.

2. Centralization risks. While EigenLayer promotes decentralized trust, a few dominant staking pools may emerge, leading to a degree of centralization within the restaking collective.

3. Module collusion risks. ​​The modular design of EigenLayer offers flexibility but also introduces a potential risk of collusion between malicious actors controlling multiple modules.

Closing Thoughts

EigenLayer's "restaking collective" serves as a potential game-changer for decentralized trust on Ethereum. By enabling permissionless innovation and providing a testing ground for Ethereum features, EigenLayer may play a crucial role in shaping a future of robust, secure, and scalable decentralized applications.

Further Reading

What Is the Ethereum Cancun Upgrade?

What Is Crypto Staking and How Does It Work?

What Is Danksharding?

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To mark this milestone of Bitcoin Halving, all verified users can complete specific tasks on Binance Square during the Activity Period, and qualify for up to $10,000 of SATS token voucher reward.  Activity Period: 2024-03-04 09:00 (UTC) to 2024-04-14 09:00 (UTC)All KYC-verified Binance users who log into their Binance accounts and complete the following tasks during the Activity Period will qualify for the $10,000 of SATS reward. Tasks: Comment your prediction for the price of BTC on 20th April 00:00 (UTC+0)  on this post. Share this post on your social media and #HalvingHorizonsThe user with the closest prediction will win $5000. If more than one user shares the same prediction, you’ll share the price pool. AndIf you correctly guessed the price and signed up for a Binance account during the activity period through the shared link of this post or the Binance Square referral link, you can unlock a share of extra $2000 price poolAndIf you correctly guessed the price and completed at least 10 trades during the activity period, you will unlock a share of the extra $3000 price poolEach user can only submit 1 entry. Terms & ConditionsThis activity may not be available in your region. Eligible users must be logged in to their verified Binance accounts whilst completing tasks during the Activity Period in order to qualify.The $10,000 of SATS token voucher rewards pool will be divided equally among all qualified users.Winners will be notified via a push notification under Creator Center > Square Assistant. Voucher rewards will be distributed within 21 working days after the activity ends. Users may check their voucher rewards via Profile > Rewards Hub. The validity period for the voucher is set at seven days from the day of distribution. Learn how to redeem a voucher.Illegally bulk registered accounts or sub-accounts shall not be eligible to participate or receive any rewards. Binance reserves the right to cancel a user’s eligibility in this activity if the account is involved in any behavior that breaches the Binance Square Community Management Guidelines or Binance Square Community Platform Terms and Conditions.Binance reserves the right at any time in its sole and absolute discretion to determine and/or amend or vary these terms and conditions without prior notice, including but not limited to canceling, extending, terminating or suspending this activity, the eligibility terms and criteria, the selection and number of winners, and the timing of any act to be done, and all participants shall be bound by these amendments.Binance reserves the right of final interpretation of this activity.Additional promotion terms and conditions can be accessed here.There may be discrepancies in the translated version of this original article in English. Please reference this original version for the latest or most accurate information where any discrepancies may arise.