CoinDCX introduces ETH staking ahead of Ethereum 2.0 launch

CoinDCX introduces ETH staking ahead of Ethereum 2.0 launch
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11 Nov, 2020

Neblio Technologies, which operates homegrown cryptocurrency exchange CoinDCX, on Wednesday said that it is set to introduce the option of staking on Ethereum 2.0.

The long-awaited upgrade to the Ethereum blockchain network is slated to go live on December 1, 2020. But, for the launch to take effect, as many as 16,384 validators will need to stake/hold a minimum of 32 ETH (around $14,700) each, or a total of approximately $200 million, seven days prior.

In anticipation of this, Mumbai based CoinDCX said it is preparing its platform to offer ETH staking support to the global cryptocurrency community. In industry parlance, staking refers to the practice of tying cryptocurrency to the network as collateral.

“We are contributing to the Ethereum ecosystem on our part so it helps to grow the whole ecosystem. For the users who want to stake Ethereum, we are providing innovative solutions to do so,” Sumit Gupta, CEO and co-founder of CoinDCX, said. 

The company said its solutions will make ETH 2.0 staking completely hassle-free by enabling a way to pool user funds to create validators.

This way, if a small-time investor does not have 32 ETH to spare for staking, they would be able to contribute to the network by locking a smaller amount. 

The minimum amount for pooling in a single transaction would be 0.1 ETH, the Coinbase-backed company said while clarifying that it will also take care of the overlying hardware and infrastructure maintenance cost once the users participate in the network.

Read more: CoinDCX raises $2.5 mn from Coinbase Ventures, Polychain Capital

Once users start pooling and staking funds to the next-gen network, CoinDCX will launch the second phase of its solution. Under this, the company said it will open a way to ensure the liquidity of the staked funds.

This phase is currently under rigorous testing and is likely to launch before ETH 2.0 goes live, it added.

Notably, following successful staking, the validators will be able to download and run the software needed to attach blocks to the Ethereum 2.0 network. Doing this will ensure that the network is secure and running properly, and provide the online stakers rewards in return, just like cryptocurrency mining.

“ETH 2.0 is touted to be the next big revolution, with many believing it to be a decentralized version of the Internet aka Web3. It is said to drastically decrease energy consumption and allow more scalability of the ETH network,” Neeraj Khandelwal, co-founder of CoinDCX, said.