Coinbase, the renowned cryptocurrency exchange based in the United States, has recently announced that it is adding total staking support, offline, for XTZ or Tezos. At present, Tezos stands at the 19th position in terms of market capitalization.
The official blog post released by Coinbase on 29th March read
“Today, we’re announcing Tezos (XTZ) staking for Coinbase Custody clients. We’re proud to be the first full-service, regulated, comprehensively-insured, and 100% offline staking provider in crypto.”
Tezos (XTZ) is the 1st operating PoS protocol (Proof-of-Stake) that is widely opted for the allocation of decentralized application development as well as smart contracts. Because of Tezos’ Delegated PoS mechanism, it has become possible to come up with its offline staking.
Apart from incorporating staking support for the digital currency of Tezos, the leading crypto exchange will also be adding administration support for MKR protocol (Maker protocol).
Making Way For Passive Income
PoS is another way that adds security to the blockchain network. It incentivizes the token holders to delegate or stake their estate to another person who runs the software of blockchain (a reliable validator or node). When you stake your coins, the network gets secured and as the blocks are mined, the validator provides you with some rewards as well.
In one way, this is quite similar to how the blockchain is secured through a PoW (Proof-of-Work) mechanism; only a distinct algorithm is utilized here to mine the blocks and achieve consensus.
As per Coinbase, it’s institutional clientele have always been keen to stake their digital currencies but felt the risk to be too high for the available products they had. The risk has now been removed, says Coinbase adding that staking coins will now become risk-free for their clients.
Coinbase also went on to state
“Prior to today, the risk necessary to actively participate in staking has mostly outweighed the return… Coinbase Custody changes this calculus. No other staking provider has our track record of security and regulatory compliance, nor our comprehensive, best-in-class insurance coverage.”
Tezos co-founder Kathleen Breitman too expressed his views on this development saying,
“The launch of Tezos staking through Coinbase Custody serves an acute need that existed up until now: a way for institutional participants who rely on a secure, offline custodian to take an active role in the network. Achieving our mission of creating a ‘digital commonwealth’ means facilitating participation for all, and that includes the institutional customers that Coinbase Custody brings to the space.”
Administration Support For XTZ and MKR
Other than the staking support, Coinbase has also announced to add governance support for the digital currency coins. Its official statement reveals that the exchange will be introducing Tezos and Maker voting in the second quarter of 2019.
Considered as one among the list of the fastest expanding and the most advanced projects active on Ethereum, MakerDAO is presently that stablecoin which is the most decentralized in the crypto market. In fact, there are over 200 projects that are integrating its Dai stablecoin.
As Coinbase will be including governance support, consumers storing MKR on the platform of Coinbase Custody would first time be qualified to take part in voting. All of it only adds to the decentralization of MakerDAO governance.
MakerDAO’s CEO and Founder Rune Christensen stated on the development,
“Decentralized governance is fundamental to the success of the Maker project. Coinbase Custody will provide an essential service by providing a way for institutional holders to participate in the system and vote with their MKR.”