ConsenSys, the company behind Metamask, announced that their staking service is changing from Codefi Staking to ConsenSys Staking. While similar in feature, the change helps emphasize the importance of the upcoming Shanghai update for Ethereum and how it can benefit ordinary investors. 

Codefi Staking is relaunching as ConsenSys Staking

ConsenSys Staking, known originally as Codefi Staking, is a staking service available to users through the Metamask wallet. According to ConenSys, there are approximately 17,000 validators under their management, providing investors with confidence that their investments will be safe through their platform. 

Following the relaunch to ConsenSys Staking, ConsenSys plans to provide expanded access to different staking services beyond Lido and MetaMask Institutional. This will give Metamask users more options when selecting a staking service to maximize their potential rewards. 

Why staking is important

Staking is an important aspect of proof-of-stake blockchain networks. When a blockchain runs a POS network, they are essentially replacing mining nodes with validators that approve transactions and broadcast them to the rest of the network.

Within each validator is a set amount of the native layer 1 token that the blockchain runs on. This can vary from chain to chain, and in Etherum’s case, the required amount is 32 Ether. This allows the validators to manage the network properly, using their stored amount of Eth to keep things efficient. 

Staking became especially important in late 2022 when the Ethereum blockchain famously merged from a proof-of-work mechanism that requires mining nodes to the current POS consensus. Since that change, the Ethereum network has expanded in efficiency and is prepared to scale further. 

The next major update to the Ethereum network will be the Shanghai update, also known as the Shapella upgrade, which will give investors access to the Ether that they have staked in the network since the beacon chain first went active in 2020. However, staked deposits will be allowed to remain on the blockchain for continued rewards, if desired. 

How to stake with ConsenSys 

Investors will have a number of options to choose from when using ConenSys to access their funds. 

• MetaMask Institutional 

Institutional-grade staking is important for large companies and organizations that wish to help expand the Ethereum blockchain network. Due to the significant amounts provided by enterprises, institutional staking requires an additional level of security for customers. 

• Consensys Staking application 

The ConsenSys application is a more standard option for staking that is going to be more appropriate for ordinary users and retail investors. However, they will still need to provide the 32 Ether minimum to do so. 

• Consensys Staking API

The ConsenSys API allows users to take their staking abilities one step further, allowing them to incorporate staking features into their own apps and Dapps, as well as onto their own websites. 

• Lido

Lido is the most consumer-friendly option for investors because it allows people to stake less than the 32 Eth minimum that is generally required. This also helps Lido expand the network by allocating the smaller amounts into validators so that they can maintain the 32 Eth requirement. 

What is SOC 2 Type II certification?

Additionally, ConsenSys also made it clear that security and confidence in their protocol are top concerns of theirs. They mention that they are the first and only staking provider that has earned SOC 2 Type II certification, an industry-standard certification for the Software as a Service business. 

This additional layer of protection should boost confidence for investors who might be wary of the risks involved with cryptocurrency, especially following the many major issues that plagued 2022. However, this certification does show that ConsenSys Staking wishes to be a leader in web3 cybers security.