Image courtesy: Consensys.net
As Phase 0 of the Ethereum 2.0 launch draws near, which involves the introduction of a Proof of Stake algorithm on the blockchain network, six major crypto juggernauts have been invited to join a staking pilot. According to Decrypt, the pilot will be run by Codefi, a blockchain service provider that offers end-to-end commercial blockchain solutions under Consensys. The companies joining the staking pilot have been identified as Binance, Huobi Wallet, Crypto.com, DARMA Capital, Trustology and Matrixport.
The ambitious new upgrades will be thoroughly tested by these six companies first before the official Phase 0 launch, where they will provide necessary feedback and review how well the protocol and mechanism works before other individual participants are given access to it. This may prove to be a wise decision, as the staking mechanism has been said to be too complex with some members in the community coming up with simplification methods to make the new update more palatable to the average user.
As detailed in our Ethereum 2.0 explainer, Ethereum is transitioning into a Proof of Stake algorithm where network validators can become eligible for selection to verify transaction blocks and thereby receive transaction fee rewards, by staking a minimum of 32 ETH on the network via a deposit contract.
The crypto community is understandably excited about this new development and for weeks, the number of Ethereum holders have increased to prepare for the launch of the staking deposit contracts.
“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. With the eventual launch of Ethereum 2.0, we are excited to support staking for all,” said Binance CEO Changpeng Zhao (CZ).
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