Coinbase indicated its plans to support Ethereum 2.0 staking rewards. Basically, the stage for wider adoption of the platform.
On December 1, the Ethereum Beacon Chain will launch, beginning a multi-year upgrade to Ethereum 2.0 (ETH2). Coinbase intends to fully support ETH2 through staking and trading.
Read more here: https://t.co/e1fsAohT4j
– Coinbase (@coinbase) November 30, 2020
In an official post, Coinbase explained that it plans to implement Ethereum 2.0’s staking, trading and conversion services in early 2021.
Once Ethereum 2.0 is supported, existing Coinbase customers will be able to convert their ETH tokens to ETH2. Very important, earning rewards for staking.
Coinbase stated that: “While staked ETH2 tokens remain locked on the Blockchain. Trading between ETH2, ETH and all other supported currencies will be allowed, providing liquidity to our clients. ‘
Ethereum 2.0 staking is coming to Coinbase
This news comes on the eve of the launch of Ethereum’s Beacon Chain. For its part, this update will move Ethereum from its existing proof-of-work (PoW) consensus, to a proof-of-stake (PoS) network.
Specifically, Phase 0 of Ethereum 2.0 was confirmed last week. After the Ethereum deposit contract reached the minimum threshold of 524,288 ETH. All this, since it was released on November 4.
It is important to clarify that Ethereum holders who choose to stake their coins will not be able to withdraw or transfer their stake until after Phase 1 is implemented. A process that could take years.
Darma Capital will offer intermediate shares
The company Darma Capital plans to offer intermediate shares that would allow users to access its capital.
Through its LiquidStake initiative, both retail and institutional investors can delegate their capital and have the possibility to use it as collateral to receive loans in USD Coin (USDC).
James Slazas, CEO of LiquidStake, said: “This is due to the temporary nature of the service.”
Also, Andrew Keys, co-founder of Darma Capital, said: “We are here to help decentralize and grow Ethereum 2.0.”
As a curious fact, Kraken Exchange will support participation in Ethereum 2.0.
Congratulations @ethereum on reaching the staking target to launch the ETH 2.0 Beacon Chain 🎉 🎉
Kraken is pleased to announce that we will be supporting the migration & ETH 2.0 staking rewards ✨ ✨
More details to be announced soon. pic.twitter.com/JIow4Xa15U
– Kraken Exchange (@krakenfx) November 24, 2020
But what is Staking?
Precisely, it consists of keeping funds in a cryptocurrency wallet, to support the security and operations of a Blockchain network.
Simply put, staking is the act of depositing cryptocurrencies in order to receive rewards.
In closing, Coinbase commented that: “We are excited about this important milestone for Ethereum 2.0 and the potential that a final launch of ETH2 has for the entire crypto community.”
In closing, Coinbase: “Will release more details as each feature launches near.”
I am retiring, but not before leaving you this phrase by Aaron Lee: “Change is the result of insurmountable market pressure.”