Sunday, April 11, 2021

Binance Joins ConsenSys and Five Others to Launch Staking Service for Ethereum 2.0

ConsenSys, a blockchain technology solutions company, is launching a new staking service-as-a-service platform for Ethereum 2.0, targeted at institutions such as exchanges, custodians, wallet services, and other potential customers.

In collaboration with other members in the industry, ConsenSys will build a staking API for Ethereum (ETH) 2.0 that is expected to launch in 2020.

According to the report, the first members of the pilot program include Binance, Crypto.com, DARMA Capital, Huobi Wallet, Matrixport, and Trustology.

The most significant part of the much-awaited upgrade to the Ethereum network is the transition from proof-of-work (PoW) to proof-of-stake (PoS) based consensus mechanism.

In this consensus mechanism, the proof-of-stake network validators lock up a digital currency deposit instead of consuming computer power, which is the case in proof-of-work (PoW). 32 ETH is the minimum amount of Ether required for Ethereum 2.0 staking, and the sum of ETH can be lost if stakers go against the rules of the network.

Going by the report, there must be a minimum of 16,384 validators staking 524,288 ETH before the network can fully go live. So, the most important goal of ConsenSys is to pave the way for the smooth launch of Ethereum 2.0.

Reacting to the new development, the staking product lead of ConsenSys, Tim Lowe, said:

“…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.”

The CEO of Binance, Changpeng Zhao, popularly known as CZ, also assured that Binance will fully support the program.

He said:

“With staking on Binance, users can receive staking rewards without needing to set up nodes, or worrying about minimum staking amounts, time lengths, or any catches. Users deserve the rewards that their coins can earn them. With the eventual launch of Ethereum 2.0, we are excited to support staking for all of our ETH holders on Binance.”

The CEO of DARMA Capital, James Slazas, said the firm is ready to team up with ConsenSys, in order to attain the desired goal for the launch of ETH 2.0.

“Ethereum’s upgrade to proof-of-stake will be a pivotal moment for both Ethereum and the Web 3.0 ecosystem. We look forward to teaming with ConsenSys as they support the technological progression and DARMA addresses the financial impact of ETH locked assets and rewards staking through staking-swaps and collateralization.

Tobi Loba
Tobi-Loba is a creative and an award-winning writer with over 5 million readers from all over the world. She has B.A in English and Literature from a reputable University and currently studying for her M.A in the same field. She recently became a contributor at Herald Sheets in order to satisfy her thirst in reporting crypto and blockchain occurrences, the interest she built over the years.

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