Rocket Pool: A Simple, Decentralized Ethereum Staking Service

Season 1 Episode 23
  • Host

    Zach DeWitt

  • Guests

    David Rugendyke

    Rocket Pool

  • Date

    April 30, 2019

  • Duration

    39 minutes

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What if you could earn interest on your Ethereum holdings using a decentralized network that removes any barriers to entry? Rocket Pool wants to allow users to do just that. There’s no need to worry about maintaining an extensive staking infrastructure. Just plug and play.

Our guest today is CTO and co-founder of Rocket Pool, David Rugendyke. Join us to learn about Rocket Pool’s features and services, when you can expect to starting using the network, and what David thinks about proof of stake versus proof of work.

Ethereum transitioning to PoS

Many people are familiar with the way current mining pools work. With Bitcoin you can put a computer to work to validate transactions on the Bitcoin blockchain, and in return for that you are awarded in Bitcoin.

Ethereum is transitioning to a new way of doing this called proof of stake (PoS), which will allow users to earn interest on their Ethereum holdings by essentially keeping a computer online to validate transactions.

A decentralized, easy-to-use staking service

Rocket Pool is being designed as a way to help you earn interest on your Ethereum holdings by eliminating a few of the initial barriers to entry, such as cost and setting up your own node.

The minimum amount required to earn interest on Ethereum through the proof of stake mechanism is 32 Ether, which is currently somewhere around $3500.

What Rocket Pool allows you to do is pool your Ether together with other users and overcome these barriers to entry and earn interest on your Ethereum in the meantime.

The future of Rocket Pool

You can expect to begin using Rocket Pool when the new Ethereum 2.0 is rolled out later in 2019 or early 2020.

In the meantime, you can visit Rocket Pool’s website at RocketPool.net to get started by reading their white paper, checking out their open source code on GitHub, and interacting with their public beta release.

Key takeaways:

  • When Ethereum transitions to proof-of-stake, users will be able to earn a yield on their Ethereum;
  • Rocket Pool hopes to be the leading staking service by offering an easy-to-use interface and non-custodial solution;
  • Rocket Pool anticipates to be up and running by the end of 2019, and you can visit RocketPool.net to begin learning how their staking services work.

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