- The goal of the new function is to make staking more accessible. Previously, it needed an investment of more than $100,000.
- However, the project continues to lack capabilities found on other staking systems.
The most widely used Ethereum wallet, MetaMask, will start allowing users to engage in “pooled staking” this week. This will reduce the cost of adding to the security of the blockchain network in comparison to operating a full validator node.
With the help of the new functionality, users will be able to take part in Ethereum staking, a well-liked cryptocurrency investment technique that involves exchanging rewards for tokens parked in a blockchain address. Staking is the main method used by “proof-of-stake” blockchains, such as Ethereum, to maintain network security.
Users of MetaMask now have a simple option to stake Ethereum in enterprise-grade
According to a statement from Consensys, the company that develops MetaMask, senior product manager Matthieu Saint Olive, validators can receive incentives, keep complete control over their Ethereum, and increase Ethereum’s security.
Traditionally, Ethereum staking requires users to bind 32 ETH to the network, which comes to almost $112,000 at the current market value. With the use of “pooled” services like Lido, Rocket Pool, and now MetaMask, more users can engage in staking by combining assets from different users, enabling anyone to do so even without 32 ETH.
For those retail traders who wish to trade, stake, and keep an eye on their staking investment all from within one interface, MetaMask’s staking capability might be a pleasant surprise.
Consensys, however, is lagging behind its competitors in the market since MetaMask was not the first cryptocurrency wallet to offer staking, and it lacks some features that have set apart more established pooled staking systems.
The most notable is that Lido and Rocket Pool provide customers with receipts for their investments known as “liquid staking tokens,” which are reinvestable into decentralized finance protocols or borrowed. Among the more well-liked assets in cryptocurrency trading are LSTs, such as Lido staked ETH (stETH).
As part of its pooled staking service, MetaMask has no intention of providing its own LST.
As per Consensys, the new staking option won’t be accessible in the United States or the United Kingdom.
According to the company’s announcement, the team also intends to market it in these areas.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
