Obol Labs and Chainnodes have partnered to simplify home Ethereum (ETH) staking by making it more accessible and secure for more home stakers. By combining their expertise, the companies have created a device that will help overcome the problems faced during home ETH staking and might promote decentralization and contribute to the growth of Ethereum network.
What is Obol Labs?
Obol Labs is a research driven organization that is focused on increasing Ethereum’s Proof-of-Stake infrastructure through Distributed Validator Technology (DVT). Through DVT multiple computers work together as one, making it more reliable and secure. This reduces risks and allows people to contribute smaller amounts to run a validator.
What is Chainnodes?
Chainnodes offers easy-to-use devices for staking cryptocurrency at home. They are small, quite and energy efficient, using only 20 watts of power. This makes it simple and affordable for individuals to stake from home without having any technical hassle.
What is Ethereum Staking?
Ethereum staking is a process in which Ether are locked up in a smart contract to become validator on the Ethereum network. In order to participate, minimum of 32 ETH are to be deposited to participate in the Ethereum’s proof-of-stake-mechanism.
In return, for keeping the network secure, the participant receives more ETH as rewards. An individual can stake on their own or can join a group to do so. In this way, this is a way individuals earn passive incomes while supporting and securing the network.
Staking can be carried out as home staking, staking at services, pooled staking and centralized staking. For home staking, a dedicated computer that is connected to the internet 24/7, 32 ETH and a technical expertise is required. The risks that are included with home staking are slashing (penalties for misbehaviour), penalties for going offline, and counter party risk like hardware failure.
With Obol Labs and Chainnodes coming together, Ethereum staking will become easier, secure and decentralized. In this innovative idea, Obol’s tech is being combined with Chainnodes’ user friendly devices. This will allow users to stake from home without needing extensive technical knowledge or an expensive setup.
How would this benefit the users?
The plug and play feature of the device provides users with a friendly setup process. With this feature, it solves the complex setup process that is required for Ethereum staking process.
As the device is said to be compact, it is an easy-to-use device and it saves considerable amount of energy by utilizing only 15 watts of power. This feature also makes this device an eco-friendly choice for home stakers, reducing energy costs and environmental impact. The squad staking can also be enabled by using 0.2 ETH to start on the mainnet.
This partnership is also said to increase participation in blockchain validation process and it is being anticipated that more and more individuals will get into staking. This could lead to a more decentralized and resilient blockchain ecosystem for Ethereum.
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