ConsenSys announced the launch of its “staking-as-a-service platform” for upcoming Ethereum 2.0 on June 16, forming an initial consortium of the Codefi Staking Pilot Program participants. The first participants are Binance, Crypto.com, DARMA Capital, Huobi Wallet, Matrixport and Trustology, who have gained early access to this program offering institutional functionality for exchanges, custodians, funds, wallets and other customers. They will provide useful feedback and request additional functionality for the Codefi Staking API, which is being designed and built before Ethereum 2.0 comes in and introduces new Proof Of Stake (POS) algorithm and staking feature.
“Some of the risks associated with running your own validator include theft or loss of withdrawal keys, incorrect transfer of funds to the Eth 2 deposit contract, and not to mention hardware or internet connectivity failures which result in a loss of validator rewards. With ConsenSys Codefi, validator keys are held in a secure vault with online signing capability, and there will be multiple layers of gatekeepers validating transactions preventing unauthorized usage. 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 Tim Lowe, Product Lead of Codefi Staking.
The Codefi Staking Pilot Program participants will have the opportunity to gain better understanding of Ethereum 2.0 and to be the first ones to offer the staking capability to their users. ConsenSys is still accepting adopters or participants for its Codefi Staking Pilot Program, who can stay ahead of the competition by gaining easy access and exposure to the next iteration of the Ethereum blockchain.
“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,” said Changpeng Zhao (CZ), CEO at Binance.
Codefi Staking API For Ethereum 2.0
Codefi Staking solution will employ a trusted ConsenSys software stack, powering an institutional grade white-label API, allowing easy access to the upcoming Ethereum 2.0 network, to enable users / enterprises to safely and profitably engage with it. The Codefi staking solution will offer direct API integration or access through a UI, allowing for staking capability and therefore block processing on the Ethereum 2.0 with minimum 99% uptime with 24/7 support through customer service, all whilst providing detailed metrics and reporting.
About Ethereum 2.0
Ethereum 2.0 is the next big upgrade for the Ethereum network. It will bring Proof Of Stake (POS), eWASM and sharding. It will reduce the resources, required to run the Ethereum network, as well as bring scalability and performance improvements. The price of ETH tokens is expected to gain a major boost also.
The upgrade will be implemented in three phases, with the first Phase 0 Beacon Chain, expected by the end of Q2 2020, which will introduce the staking facility. This will be followed by the Phase 1 in Q1 2021, which will introduce sharding and allow data to be stored on shards, however transactions can’t still be processed. The Phase 2 will make the Ethereum 2.0 truly complete and the network operational, after its introduction at some point in 2022. It will bring the Ethereum WebAssembly (eWASM) replacing the now operational Ethereum Virtual Machine (EVM). Only after the Phase 2 has been rolled out, proper execution of smart contracts and transactions can commence on the new Eth2 chain. The Eth1 and Eth2 chain will gradually merge with each other.