ConsenSys launches staking service for Ethereum 2.0
June 16, 2020, 12:38PM EDT
1 min read
ConsenSys is launching a new staking-as-a-service platform aimed at institutions including exchanges, custodians, and wallet services. The first order of business will be to work with several industry partners to build a staking API for Ethereum 2.0, the first phase of which is supposed to launch this year.
The initial class of pilot participants will be Binance, Crypto.com, DARMA Capital, Huobi Wallet, Matrixport, and Trustology, according to a news release.
A cornerstone of the much-anticipated upgrade to Ethereum’s network is a transition from its proof-of-work based consensus mechanism to one based on proof-of-stake. Instead of expending computing power, validators in a proof-of-stake network lock up a cryptocurrency deposit — for Ethereum 2.0 it will take 32 ETH — and risk losing it if they don’t follow the network’s rules.
But the staking process can be technically complicated, and staking-as-a-service platforms have arisen to simplify the experience for investors who don’t want to run their own validator node.
Part of ConsenSys's goal is to help pave the way to Ethereum 2.0's long-awaited launch. There must be a minimum of 16,384 validators staking 524,288 ETH before the network can go live, according to the release.
“We know the importance of onboarding as many validators to Ethereum 2.0, and for that reason have built a turnkey solution for enabling large exchanges and institutional crypto funds to have an always-on and dependable access point to stake the ETH they hold for their customers,” said ConsenSys’s staking product lead Tim Lowe.
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