Owning San Francisco’s first federally registered crypto bank, Anchorage Digital has announced a major step ahead of the network’s transition from PoW to PoS.
The platform launches Ethereum staking for institutional investors. Organizations will now be able to act as validators on the Ethereum blockchain on the Anchorage platform and receive rewards.
According to Diogo Mónica, co-founder and president of the company, staking is a win-win option for both institutional investors and the ecosystem as a whole:
“We are paving the way for organizations betting on Ethereum, as well as providing increased legitimacy to market-tested assets and, in the process, removing any risk for anyone seeking to earn income from digital currencies.”
At the beginning of the month, Ethereum developers announced the successful transition of the Ropsten test network to the Proof-of-Stake consensus algorithm. Now in the network, validators, not miners, are responsible for confirming operations.
The transition should allow investors to earn rewards for their ETH staked through Anchorage. After the merger, validators will receive not only a block reward, but also a transaction priority fee, which previously only went to miners.
At the end of May, Ethereum co-founder Vitalik Buterin and several other developers confirmed that, if everything goes according to plan, a full-fledged network transition will take place as early as August this year.
Source: Bits
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