UAE’s IBC Group to Invest $10 Million in Ethereum 2.0 Launch

SourceAl Bawaba
SectorTechnology
CountryUAE

The investment is to be made in partnership with Canada based CanETH, an institutional-grade staking service for holders of Ether, which facilitates users participating in Ethereum 2.0.   “We are very excited by the ‘Proof of Stake’ concept proposed for the Ethereum 2.0 smart contracts and are locking up 20,000 eth which is a one way trip till phase 2, this lockup shows our confidence in ETH2 and dedication to the beacon chain,” says Khurram Shroff, Dubai-based entrepreneur and Chairman of IBC.   “The greener and more efficient version being introduced in the second iteration addresses the unsustainably high energy consumption required by the ‘proof of work’ model, making it even more attractive.”   Ethereum founder Vitalik Buterin has announced December 1, 2020 as the date for the "Genesis" launch, which will require 16,384 validators to stake 524,288 ether into the contract - equivalent to around $230 million - for Ethereum 2.0 to go live.

If this level of participation is reached, the staking rewards are ~25% APR.   Staking is being seen as a preferable approach to support Blockchain networks, as opposed to the energy intensive Mining required by the previous model of Blockchain.   Proof of Stake networks allow the commitment of funds for a period of time, ...read more...