coincodex.com
Key highlights:
- Cloudflare will be running their own Ethereum validator nodes
- The company says they're interested in experimenting with Proof-of-Stake blockchains, but don't plan to operate any Proof-of-Work infrastructure
- It's still unclear exactly when the transition to Proof-of-Stake will happen on the Ethereum mainnet
Cloudflare says they will be running fully staked Ethereum validators
Prominent web security and infrastructure company Cloudflare is planning to launch its own Ethereum validator notes and stake ETH. The company plans to fully stake the Ethereum nodes it will be launching.
In a blog post published on the company’s website, Cloudflare product manager and researcher Wesley Evans explained that the company operating its own validator nodes will help support the Ethereum blockchain by strengthening its geographic and infrastructure decentralization.
Per the post, Cloudflare wants to experiment with Proof-of-Stake (PoS) blockchains and intends to use its nodes as a “testing ground for research”. Interestingly enough, the blog post says that Cloudflare will not be using its network to operate any Proof-of-Work (PoW) infrastructure, citing concerns surrounding its energy consumption.
Here’s what Evans wrote about Cloudflare’s involvement with ETH staking:
“This helps keep the network secure, outage resistant, and closer to the goal of global decentralization for everyone. For us, It’s a commitment to helping research and experiment with scaling the next generation of blockchain networks that could be a key part of the story of the Internet.”
Cloudflare has been involved with decentralized systems and Ethereum for about four years now. In September 2018, the company launched its gateway for accessing the InterPlanetary File System (IPFS). In June of 2019, Cloudflare introduced its Ethereum Gateway product, which makes it possible for users to access Ethereum without running their own nodes.
Ethereum will adopt the PoS consensus mechanism through “The Merge”, which will involve the current Ethereum mainnet merging with the Beacon Chain. The Merge will be tested on the Ropsten testnet in June, which will represent an important step as we move closer to the mainnet merge. Even though significant progress is being made in testing, there is currently no firm deadline for when we can expect The Merge to happen on the Ethereum mainnet.
The number of ETH that’s currently being staked on the Beacon Chain represents more than 10% of all ETH in circulation. ETH stakers are currently earning an APR of 4.3%, according to the Ethereum Foundation.
The price of Ethereum slipped under the $2,000 mark this week. ETH is currently changing hands at about $1,970, and is currently posting a +1.6% 7-day change.