Crypto exchange Coinbase introduces staking for eth2

Staking is to Ethereum what mining is to Bitcoin. However, this form of investment is not risk-free. Now the crypto exchange Coinbase has presented its plans for Ethereum 2.0.

The crypto world has been waiting longingly for the launch of Ethereum 2.0. The crypto exchange Coinbase has now revealed its plans on how it will deal with the topic of staking and trading in the future when two different tokens “ETH1” and “ETH2” exist. In a blog post Coinbase makes it clear that it will offer conversion services from “ETH1” to “ETH2”. Anyone who decides to stake their tokens receives a staking reward as usual. Unlike the already existing Ethereum network, Eth2 is not proof-of-work-, but a Proof-of-Stake-based blockchain network. The already established Ethereum blockchain is always used alongside the new one on Proof of Stake based „Beacon Chain“ parallel laufen.

While pegged ETH2 tokens will remain in the chain, Coinbase will also enable trading between ETH2, ETH and all other supported currencies and offer our customers liquidity. We are pleased about this important milestone for ETH2 and the potential that a final rollout of ETH2 holds for the entire crypto community.

Surojit Chatterjee, Coinbase

32 ETH are a prerequisite for staking on the Beacon Chain

The blog does not give an exact time. At the beginning of 2021, it is said, the necessary legal steps should be completed. With the upgrade to phase zero of its version 2.0, Ethereum will be its new one proof-of-stake– Establish a network. Ethereum’s development team claims that the proof-of-stake the centralization risks are reduced and also more secure, for example with a view to 51 percent attacks.

The reason for this is that the ETH stakeholders play a central role in the beacon chain. You will receive a reward for securing the network and constant validation. Basically anyone can advance to an ETH staker. To do this, however, it is necessary to deposit 32 ETH on the beacon chain or to participate in a staking pool. A random generator is used to select from the approved certifiers.

Last week, Eth2 announced the start of Phase 0. As of today’s date, 878,561 ETH deposited on the beacon chain, which is evidence of the popularity of the staking. There is only one catch: the stakers will only be able to transfer their stake after the introduction of phase 1. How long this will take is currently completely open. Several companies, including Darma Capital, plan to offer art staking as a service. This would also enable users to access their capital earlier.