Ethereum 2.0 is one of the most anticipated developments in the blockchain and crypto industry. This upgrade is the first of many updates that solidifies the transition of the Ethereum blockchain from proof of work (PoW) mechanism to Proof of Stake (PoS) protocol. What this means is that the network will ditch mining and gradually implement staking as the primary transaction validation process. And once this upgrade is in full effect, the Ethereum blockchain will rely on validators to ensure that there are no cases of double-spending. In return, it will reward validators with newly minted coins for their commitment towards establishing the integrity and security of the Ethereum network.
Hence, you will agree that staking is about to become a big deal in the vast Ethereum community. One of the platforms that understand this inevitability and have introduced solutions to cater to changing dynamics on the second most popular blockchain network is Blox Staking. This platform has crafted infrastructures ideal for powering staking activities on the Ethereum 2.0 blockchain. In this review, we will explore the core operations of this system, highlight its strengths, and discuss its flaws.
What Is Blox Staking
Since Blox is an established brand in the crypto scene, its latest project encapsulates the technical expertise it has accrued all these years and provides unique solutions to a new set of challenges. From the information made available on the website, we discovered that Blox has closely followed the Ethereum blockchain saga and identified a way to capitalize on the series of updates expected to go into effect in the latter part of 2020. Blox Staking is an open-source infrastructure built to cater to individuals and businesses that are looking to run nodes on the Ethereum blockchain and ultimately participate as validators.
The goal is to enable an ultra-secure and non-custodial infrastructure for validators. To implement this tall order, Blox Staking is allowing validators to retain custody of their private keys. According to Blox Staking, it introduces a desktop application that creates a secure environment on validator’s PCs for an extra layer of security. Besides, the services secure all keys and data by integrating the encryption and security infrastructures of Harshcorp Vault and KeyVault. All in all, Blox Staking provides users with all the systems and tools they need to stake Ethereum profitably. Below are some of the features you will find on Blox Staking.
Features of Blox Staking
As mentioned earlier, Blox Staking focuses on allowing validators to retain some level of autonomy over their assets. Hence, users do not have to deposit their funds in a third-party wallet before they could operate a validating node on the Ethereum blockchain. With this in place, validators do not need to worry too much about the security of their assets. Instead, the solution incorporates its open source technology, KeyVault, which provides armored private key management.
Plug and Play System
It is straightforward to set up Blox staking and to start receiving rewards. This is because the solution has opted for a simple onboarding process that lets anyone integrate seamlessly.
Slashing Protection Functionality
When it comes to staking, validators run the risk of losing their rewards or principal coin if they fail to maintain an active node. In light of this, Blox Staking ensures that all of its nodes are robust and reliable.
A Monitoring Dashboard
Blox Staking, through its dashboard, gives users a summary of their staking activities and a broad array of management tools. As such, validators have access to vital metrics, reward analysis tools, and private keys management infrastructures.
System and Activity Alerts
In addition to offering insight on performance, the platform lets users set activity alerts. Besides, the system alerts validators on vital developments on the blockchain that could affect or alter their operations.
Node Backup and Redundancy
Blox claims that it has three node backup and redundancy servers to ensure the continuity of services. These servers are located in different regions of the world.
Pay Per-Validator Pricing Model
For now, validators can use Blox Staking Beta for free. However, once its mainnet launches, the service will switch to a pay per-validator model.
What Are the Pros and Cons of Blox Staking?
The Pros of Blox Staking
It Runs A Non-Custodial Service
Blox Staking is serious about enabling a secure staking infrastructure. Hence, it has opted for a non-custodial system suitable for individuals and businesses looking to retain some level of autonomy. By implementing this feature, the platform, to a large extent, reduces the risks of losing users' funds to security attacks.
It Allows Easy Onboarding
The staking provider ensures that it is easy for validators to install and incorporate its infrastructures. According to Blox Staking, it uses a simplified wizard-guide to walk new users through the processes required to install the Blox KeyVault and Validator. As soon as both infrastructures are implemented, users can start to stake Ethereum.
It Provides Monitoring and Management Tools
The solution, through its desktop application, always keeps validators in the loop as regards core performance metrics and system dynamics. Moreover, it has alerting systems that notify validators on core developments emanating from the Ethereum blockchain as well as the Blox Staking system.
It Offers Slashing Protection
One of the core requirements of blockchain validators is that their nodes must be online permanently. Validators that cannot maintain reliable connection are at risks of losing rewards and even a fraction of their staked coins. To mitigate this risk, Blox Staking promises reliable and robust nodes. Also, it has node backups and redundancy servers to reduce the occurrence of downtimes.
It Provides Quality Customer Service and Support
Owing to the technicalities involved in staking and the fact that Ethereum 2.0 is a new system, validators need to access effective customer support systems. From early indications, Blox Staking is aware of the importance of customer relations, and it has provided multiple feedback systems where users can lodge complaints and receive a quick response.
The Cons of Blox Staking
It Is Suitable for Individuals with Low Staking Power
Interested users will have to stake a minimum of 32ETH to become validators on the Ethereum blockchain through Blox Staking. Thus, it is not an ideal option for individuals with low staking power. For these people, it is preferable to opt for staking pools.