The launching of Eth2.0 Phase 0 on December 1st introduced the concept of staking to the Ethereum universe. Unfortunately the implementation of the Proof of Stake concept in this previous Proof of Work system is quite complex, and has forced Eth2.0 developers to impose some stiff requirements on would-be validators.
The basic requirements were for validators to pledge 32 ETH on the staking contract, and to run the validator software continuously. These requirements took Ethereum staking out of the reach of many regular users.
But as there is much public interest in staking Ethereum it was clear that some solution would soon be found. The solution has arrived in the form of Ethereum 2.0 derivatives that are being rolled out by most major crypto exchanges.
Binance:
Beginning on December 2nd, the largest exchange by volume launched ETH 2.0 Staking by the way of the Beacon Ethereum (BETH) derivative.
Users who stake ETH with BINANCE receive one BETH for every ETH staked, the minimum stake amount is 0.0001 ETH. Binance will distribute the pool earnings in the form of BETH daily.
When Eth 2.0 Phase 1 is launched users will be able to turn in their BETH for ETH at a 1:1 ratio.
Coinbase:
Coinbase announced on November 30th their plans for bringing ETH 2.0 staking to their platform. They have not yet released the details, but it appears it will be done via an ETH derivative that will be also tradeable on that platform, this would allow stakers to retrieve their earnings ahead of the release of Eth 2.0 Phase 1.
Kraken:
On December 4th Kraken began offering the ETH staking service, in just four days over 100K of ETH had been deposited into staking accounts there.
Huobi Global:
The exchange Huobi went one step farther in backing ETH staking, incorporating a ETH2.0 one-click function. This function allows the user to pledge ETH as BETH (1:1 ratio) with one click and participate in ETH 2.0 proof-of-stake mining.
The minimum stake amount is set at 0.1 ETH. As per the Eth 2.0 development phase, the BETH generated by staking will be distributed amongst the pool’s participants, but cannot be withdrawn until Eth 2.0 Phase 1 goes live. HUOBI GLOBAL has stated their intention to open BETH's transaction at any opportunity according to the network status, this would allow users to cash in on their earnings before phase 1 is launched.
As usual, the market has come up with solutions to problems what at first seemed to be huge barriers to the adoption of PoS version of ETH. This in terms of the amount of ETH required for staking, and also the need to run a validator node full time. But there remains one stumbling block.
There is no set date for the release of Phase 1, when stakers will be able to trade in their ETH derivatives for normal ETH. So, it must be noted though that staking ETH at this time is a long-term commitment. The creation of markets for trading BETH will most likely resolve this issue, although it would most likely not be a 1:1 ETH to BETH ratio.
It must be noted that there is always risk associated with dealing in cryptocurrencies. This is an unregulated market, so care must be exercised to contrast the information provided in this article before you commit any funds. This article is not intended as financial advice.
