Support for staking ahead of Ethereum upgrade on crypto exchange Gemini

Users in the US, Singapore and Hong Kong will get support for staking on crypto exchange Gemini ahead of next month’s upgrade to the blockchain Ethereum. With this, users will be able to get rewards on crypto assets. Initially there will be support for Polygon on Gemini. Then there are plans to offer support for Ethereum, Solana and Audius.

A few other crypto firms have also expanded their staking coverage ahead of the Ethereum upgrade. Gemini said that users staking with its service will be at ease with less technical requirements. However, it is not clear whether the exchange plans to run its own validator notes or run it with external validators. Earlier this month Coinbase reported expanding the scope of its staking service to institutional clients. The exchange recently said it could shut down its staking service if asked to censor Ethereum.

In this upgrade, Ethereum developers are recoding its mining protocol from a Proof-of-Work (PoW) system to Proof-of-Stake (PoS). This is likely to greatly reduce the energy consumption of Ethereum. Some network tests will be done before it is released for use. These tests will help developers understand the performance of the network after the upgrade. More than $100 billion of decentralized finance (DeFi) apps are supported on this blockchain, and because of this, the upgrade is being cautious.

The upgrade may also bring relief to investors in the crypto derivative token called stETH. Ethereum miners have to use large server farms to order transactions on the blockchain, resulting in higher electricity consumption and increased carbon emissions. The electricity usage of one Ethereum transaction is estimated to be equivalent to 1,40,893 Visa credit card transactions. This system is called Proof of Stake. There was a shortage of electricity in some countries due to crypto activities. To tackle this problem, China banned crypto mining last year.

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