How to layout ETH 2.0 Staking? Take Blox, Ankr, and Rocket Pool as examples
ETH 2.0 is a major event closely watched by the industry. Ethereum has the most important and prosperous ecological network in the industry, but the poor performance of Ethereum cannot meet a large number of usage needs. Countless developers and users are looking forward to the arrival of ETH 2.0.
It will take a long time for ETH 2.0 to be fully available. Before that, the ETH 2.0 Staking system will be launched first. Based on ETH's second-ranked market capitalization and its huge user base, ETH 2.0's Staking has also received close attention.
The Staking mode of ETH 2.0 is different from the common Staking mode now. The common Staking mode generally only has more than 100 nodes, and ordinary users only need to vote for these nodes.The difference of ETH 2.0 is that each node only needs to mortgage 32 ETH to meet the requirements, and mortgage more tokens will not generate additional income, so the ETH 2.0 system will have many nodes, and the massive nodes are ETH 2.0 and The biggest difference between other staking systems.
At present, the circulation of ETH is about 110 million. According to the industry average mortgage rate of 50%, there will be about 50 million ETH participating in Staking. If each node stakes 32 ETH, there will be about 1.56 million nodes.
But for ordinary users, it is unrealistic to build nodes by themselves, and here will lead to an important participant - node service providers. At present, many institutions, exchanges and project parties are actively deploying this business.
Generally speaking, the higher the quality of the project, the higher the Staking ratio. In the case of ETH, it is not difficult to reach a 70% mortgage ratio. Of course, because ETH2.0 is still far from mature, the ETH of Staking cannot be withdrawn in the initial stage, which will affect the pledge ratio.
The current market value of ETH is 38 billion US dollars. According to the staking ratio of 50%, there will be 19 billion US dollars of ETH for staking. Based on the 15% annualized rate of return, the annual income of staking is about 2.85 billion US dollars, and the node service provider is calculated based on the 20% commission, the annual income is 570 million US dollars. Note that this is a steady stream of continuous income.
ETH 2.0 Staking business is a big cake!
But for ordinary users, the cakes obtained by institutions and exchanges have nothing to do with you, but some projects dedicated to providing users with staking services may be the direction we can lay out.
Let’s briefly talk about the three projects Blox, Ankr, and Rocket Pool.
1. Blox
Blox is an old project. Before doing the ETH Staking business, it was a business-oriented asset management platform. This year, a new business of ETH Staking was added, and the previous business is still in operation.
Blox’s previous business was a tool product, and it had nothing to do with the C-end, but we know that node service providers value traffic very much. Even if you have excellent products, you don’t have a high reputation and good marketing Customer acquisition strategy is also difficult to gain market share. Because this is not a field without competitors.
Compared with the custodial services provided by centralized institutions and exchanges, Blox’s products are its biggest advantage, that is, non-custodial staking services. For many users, non-custodial staking is a very important feature, just like many people like it very much. DEX like that.
Blox allows users to run their own nodes through simple operations without interacting with the command line. Users only need to have their own cloud node accounts to deploy nodes.
Blox is fully open source with a minimum participation amount of 32 ETH, but has plans in its roadmap to introduce non-custodial staking pools that will be able to reduce the minimum participation amount.In terms of products, the Alpha version was released in June. The public beta version was originally planned to be released in September, but it has not yet been released.
Blox's model is relatively simple. The core is a set of programs developed by users to configure, run, and manage nodes. Blox's programs provide robust, reliable, and secure node services, with transparent revenue and no need to hand over private keys.
Regarding its tokens, using their services will charge a certain service fee, which will be used to repurchase and destroy their tokens. The specific charging ratio has not been seen yet.
The reason why the model is simple is that the participants are only users themselves and there are no third-party participants, which is different from the two projects to be introduced below.
2. Ankr
Ankr is also an old project. At the beginning, it wanted to do cloud computing business. Now it mainly focuses on node business. It currently supports 50+ protocols, and more than 1,000 nodes have been deployed on it.
Ankr has achieved profitability by relying on simple, easy-to-use, cheap, and fool-like node services, which can be said to be excellent in the industry.
As mentioned at the beginning, ETH 2.0 will have more than 1.5 million nodes, and Ankr's node service is indeed cheap and easy to use, which will bring potential users to Ankr.
And more than that, Ankr will also provide in-depth services for ETH 2.0 Staking. It is developing a decentralized protocol platform Stkr, which will provide users with non-custodial staking and micro-pool services. It is necessary to explain that Stkr's business will be expanded to PoS protocols such as Polkadot and Cosmos in the later stage.
There are three roles in the Stkr system, users who want to participate in Staking, node service providers, and software for managing nodes. This is a platform for connecting demanders and service providers.
The software of the management node is required for the operation of the node service provider. At the same time, it also randomly selects other nodes on the Stkr infrastructure, checks their uptime, and reports to the smart contract. At the same time, this software will also provide the pledge service of ANKR tokens, users can pledge and get rewards, and users who pledge tokens will also get rewards for participating in voting.
The Stkr system has a reputation evaluation for node service providers. Node service providers with different reputations need to mortgage different amounts of ETH and ANKR tokens. The nodes with the highest reputation only need to mortgage ANKR. The mortgaged assets are used to make up for the losses caused by the failure of node service providers to provide reliable services. The more assets the node service provider mortgages, the greater the probability of being selected in theory.
At the same time, Ankr also provides micro-pool services, even if users have only a small amount of ETH, they can participate in Staking, and it is also a decentralized service.
At the same time, it is expected that Ankr will try to solve the problem that Staking assets cannot be circulated. In September, CoinGecko co-founder Bobby Ong interviewed Ankr CEO Chandler Song. In the interview, Chandler expressed his desire to provide liquidity for Staking users , which will be an attractive highlight.
ANKR tokens were only used as one of the payment methods for node fees before, but on the Stkr platform, ANKR will be the only payment method, and it provides a variety of usage scenarios such as pledge services and rewards for participating in governance.
This solves the long-term problem of weak usage scenarios of ANKR tokens, but it may be better if part of the profits of the platform can be used to buy back tokens.
Judging from the introduction materials, users basically do not need to perform any operations to participate in Staking, and it is relatively simple to use.
3. Rocket Pool
Rocket is a project that has been running towards the ETH 2.0 staking business from the very beginning. It has been going in this direction for 3 years, and it seems that it is finally approaching a milestone.
Rocket has launched multiple versions of the test network, and the latest one is Rocket Pool 2.0 V1, which was launched at the end of September.
Rocket and Ankr are somewhat similar in some parts, and are also composed of Staking users, node service providers and software.
The operation on the client side is very simple. You only need to enter the amount of ETH you want to staking, click start, and it will be done after confirmation through the wallet. The user does not need to perform other operations.
After confirmation, the user will get the corresponding proportion of rETH. As you can see in the above picture, I staking 5 ETH and got 4.99 rETH. rETH is a staking certificate issued by the platform, which represents the share and income of staking ETH.
rETH is negotiable and tradable, which allows users to obtain Staking benefits without losing their liquidity.
ETH withdrawal is also very simple, you only need to perform the reverse operation on the page to get the corresponding share of ETH assets. The test network has not yet seen information on transaction fees, but it is common sense to speculate that transaction fees should be charged, which will be an additional value capture for the platform.
At present, no official documents have been released about its token usage scenarios, but node providers need to pledge a certain amount of system tokens.
Four. Summary
Four. Summary
ETH 2.0 Staking business space is very large, it is difficult for ordinary users to build nodes, and node providers will show their talents. It can not only obtain commission income, but also capture more value by providing users with additional services, such as the trading market created by providing token tokens for Staking ETH, as well as the value of a large number of users themselves.
There are many participants in ETH 2.0 Staking, and institutions, exchanges, and project parties will all be deeply involved, and it is impossible for a single dominance scene to emerge. But the opportunity for ordinary users to participate can only be the layout of some projects.
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References
https://www.bloxstaking.com/frequently-asked-questions/#pp-toc__heading-anchor-6
https://www.bloxstaking.com/blog/product-updates/product-update-desktop-staking-app
https://assets.ankr.com/files/stkr_whitepaper_cn.pdf
https://www.chainnews.com/articles/336903218692.htm
https://medium.com/rocket-pool/rocket-pool-101-faq-ee683af10da9#0cf8
https://medium.com/rocket-pool/rocket-pool-101-faq-ee683af10da9#037a
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Disclaimer: This article is the author's independent opinion, and does not represent the position of the Blockchain Institute (public account), nor does it constitute any investment opinion or suggestion.
