Topic: Bankers staking ETH 2.0? - page 2. (Read 247 times)
It depends on how big the banks are in terms of their stakes. Obviously, if they have the majority then perhaps they can sway away the price and somewhat manipulate it. But Ethereum staking market is huge, there are no single entity that can control. Although there could be whales in the Ethereum ecosystem, but I just the majority of holders are just average joe like you and me who chooses to earn some at a certain APY percentage. I guess for now, we can say that we are safe from this banks, and besides Sygnum bank is not one major player in the field. Probably they just wanted to take advantage of the current hype and make more money.
Recently, a financial institution called "Sygnum Bank" announced the launch of ETH 2.0 staking. It's the first time a bank offers crypto services to its customers (as far as I'm aware).
What are your thoughts? Do you think banks adoption of ETH will harm the decentralization of the blockchain in the long run? If not, why? Is going full PoS a bad idea for Ethereum? Your input will be greatly appreciated. Thank you.
What are your thoughts? Do you think banks adoption of ETH will harm the decentralization of the blockchain in the long run? If not, why? Is going full PoS a bad idea for Ethereum? Your input will be greatly appreciated. Thank you.
I never heard of the sygnum bank before it seems to be a relatively small swiss bank with a focus on digital assets. It would make sense though also for more traditional and conservative banks to offer ETH Staking as a financial product to their customers, because they can offer the customers fixed interests of around 4-5% and they can keep the rest of the earned interests as fee. It also makes sense for the customers because if you stake your ETH on a exchange and that exchange gets hacked or was a scam then your money is lost. If you stake your ETH in a real bank than your funds are insured trough the bank.
I don't really think that i will have a huge impact on the decentralization of ETH because ETH is just too big already that 1 Bank can accumulate such a big amount of Staked ETH that they can somehow influence the whole network.
Recently, a financial institution called "Sygnum Bank" announced the launch of ETH 2.0 staking. It's the first time a bank offers crypto services to its customers (as far as I'm aware). While some may say this is good for mainstream adoption, I think this does more harm than good to Ethereum over the long term. If more banks join the game, they'll be able to control the Ethereum blockchain using customer's stake. Remember what happened with the STEEM/HIVE fork some time ago? Big exchanges like Binance and Huobi used customer's funds in order to manipulate the blockchain to their own desire. Imagine if centralized exchanges and banks dominate the whole ETH blockchain with their stake. It'll be a complete disaster for the decentralization and censorship-resistance of the world's second-largest cryptocurrency by market cap.
What are your thoughts? Do you think banks adoption of ETH will harm the decentralization of the blockchain in the long run? If not, why? Is going full PoS a bad idea for Ethereum? Your input will be greatly appreciated. Thank you.
What are your thoughts? Do you think banks adoption of ETH will harm the decentralization of the blockchain in the long run? If not, why? Is going full PoS a bad idea for Ethereum? Your input will be greatly appreciated. Thank you.
Jump to: