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- The crypto firm announced the news of the launch of this Ethereum staking service for institutions through Twitter on June 28, 2022.
- Many big firms are insecure about their crypto savings, specifically the famous coins such as Bitcoin, Ethereum, and Cardano. This is the gap that Anchorage Digital is aiming to solve. The firm claims to keep the crypto holdings of the big organizations.
- In Anchorage, the coins are stored offline(cold wallets), unlike the online storage wallets, also known as hot wallets.
The Ethereum Staking Protocol
Finally, the second-largest cryptocurrency in the world, Ethereum, can be staked by the crypto storage firm- ‘Anchorage Digital’.
The crypto firm announced the news of the launch of this Ethereum staking service for institutions through Twitter on June 28, 2022.
Through this initiative, people will be able to earn rewards and gifts in the second-largest cryptocurrency in the world.
The co-founder and president of Anchorage Digital stated that:
“By paving the way for institutions to stake their Ethereum, we’re providing heightened legitimacy to market-tested assets—and in the process, eliminating any hot wallet risks for institutions looking to generate new earnings from crypto.”
Many big firms are insecure about their crypto savings, specifically the famous coins such as Bitcoin, Ethereum, and Cardano.
This is the gap that Anchorage Digital is aiming to solve. The firm claims to keep the crypto holdings of the big organizations.
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No, It’s Not A Regular Staking Service
Some of the organization types to who Anchorage Digital provides their Ethereum staking services are:
- Banks
- Venture Capital firms
- Governments
The difference between Anchorage and other counterparts is that this firm stores Ethereum in cold storage. This refers to the fact that the coins are stored offline, unlike the online storage wallets, also known as hot wallets.
This staking is possible because of the consensus protocol, known as PoS(Proof-of-stake).
In simpler words, PoS is a mechanism where the users of the blockchain store the crypto on the blockchain in order to validate the transactions.
They are rewarded by the system by getting a few of the blockchain’s native coins.
PoS is distinct from the proof-of-work (PoW) consensus method that Bitcoin utilizes, which requires a lot of energy-intensive computation to create new blocks.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
