Crypto Market Cap$2,411,636,528,3881.28%
Proof-of-Stake Marketcap$326,775,928,658-6.97%
Total Value Locked$308,887,336,216-4.06%
Proof-of-Stake Dominance18.85%-4.89%
Average Interest Rate8.51%-2.18%
Average Total Staked52.45%-0.12%
Crypto Market Cap$2,411,636,528,3881.28%
Proof-of-Stake Marketcap$326,775,928,658-6.97%
Total Value Locked$308,887,336,216-4.06%
Proof-of-Stake Dominance18.85%-4.89%
Average Interest Rate8.51%-2.18%
Average Total Staked52.45%-0.12%

      The highly anticipated ETH 2.0 “merging” of Ethereum Mainnet with the beacon chain proof of stake system is a hot topic in the crypto ecosystem. The timeline for implementation varies but some developers project the event to take place Q1 of 2022 with the possibility of transitioning to full proof-of-stake consensus by end of year! Since the beacon chain launched last December the deposit contract has received over 7.7 million ETH (6.1%+ of current total supply). At the time of writing that’s over $23 Billion dollars in value locked.

      If you are unfamiliar with the ETH 2.0 staking process and want to learn more we urge you to check out our helpful guide: How to stake ETH | The ultimate Ethereum 2.0 staking guide.

      Ethereum Staking and EIP 1559

      So why are Ethereum holders depositing their ETH to the Beacon chain despite an unknown timeline for withdrawal? Ethereum recently reached a historic milestone where the daily issuance of ETH fell below < the total amount of tokens burned for the day: Ethereum’s first deflationary day. The protocol’s implementation of EIP 1559 has now burned over 340,000 ETH ($1 Billion+) and as the network’s utility & user onboarding metrics grow the deflationary pattern could continue. 

      As global demand for passive yield measured in an inflating asset (fiat) continues to grow, what will investors’ appetites look like when APY is denominated in a potentially deflationary asset? 

      ETH block rewards vs. EIP 1559
      https://dataalways.substack.com/

      As the price continues to appreciate, many Ethereum holders with a 32 balance are faced with the challenges of both security and technical risks if they aspire to operate their own validator node. This is why many choose a lower staking reward yield by allowing exchanges to act on their behalf. However, what if there was a staking service provider who could offer a more competitive APY than centralized exchanges without requiring customers to give up their private keys?

      Allnodes might be the staking solution for Ethereum holders who want a balance between custody, security and service! In this article, we’ll review Allnodes’ services, security, decentralization and tradeoffs as a non-custodial platform. 

      What does Allnodes care about?

      Allnodes has a professional strategic approach centered around people– like many in crypto, they believe that blockchain exists for the sake of mankind and the betterment of our lives. The Los Angeles CA based company was founded in May 2017 and since then has continued to grow with currently over 18,000+ hosted nodes with a total valuation of almost $2 Billion dollars. 

      The Allnodes team believes in designing solutions for multiple blockchain sectors while placing a strong emphasis on the power of relationships; the private company strives to set a higher standard for customers as well as their partners.  

      What Services does Allnodes offer?

      1. Masternode & Semi-Custodial Staking Services

      Allnodes currently offers semi-custodial and non-custodial staking solutions for many layer one protocols. The easy-to-use UI enables customers to spin up nodes or delegate to staking pools however Allnodes does have minimum requirement amounts to participate. 

      In the case of running an ETH validator(s) (32 or more ETH is required) while the user does maintain custody of their private keys (pneumonic seed phrase), Allnodes does require users to deposit their validator keys when establishing a validator node. This is why I would classify it as semi-custodial service (this is so they can sign for the validator node on the user’s behalf) 

      Their notifications bot offers users the option to sync their Telegram, Slack or Discord for timely alerts including issues, status changes or staking rewards. They have an eager and hands-on 24/7/365 customer service team with exceptionally fast reply times. 

      2. Non-Custodial Staking & Delegation Services

      While over 30 crypto projects are currently supported by Allnodes, a unique feature for many L1 protocols like SOL, ADA, DOT, AVAX and COSMOS are non-custodial staking services. Allnodes’ easy to understand platform demonstrates their commitment to enabling users to gain access to staking yields on their assets from the comfort of their hardware wallets. Delegation services are also available from users’ cold storage devices if they have ambitions to become a Delegator node on the Polygon network for instance or delegate SOL to a validator node in the Solana ecosystem. 

      Whether it is the Terra Luna station wallet or Polkadot’s Apps wallet the Allnodes team has gone to great lengths to accommodate the user’s ability to earn on their assets without compromised custody of their private keys.

      3. Bitcoin Full-Node Hosting Service

      If you would like to contribute to the decentralized effort of expanding the Bitcoin ecosystem, Allnodes offers a full-node service as well. 

      The Team guarantees a 99.90% uptime SLA. This is one of the reasons StakeHound has partnered with Allnodes in September last year. Allnodes utilizes Digital Ocean and Linode servers to help support it’s reputable uptime and boasts 99.9%+ great-excellent service reviews from their customers. 

      If you would like to learn more about Bitcoin full-nodes as well some of the advantages as well as disadvantages, here’s a helpful and educational article from hodlhard.io.

      Who is behind the Allnodes Team? 

      Konstantin Boyko-Romanovsky is the current founder and CEO of Allnodes. He is also notably the founder of both the The Abyss as well as Destiny.Games. While the company is opening a NY location in addition to their current CA office, the team at Allnodes is small and only shows 3 total employees on LinkedIn. 

      Konstantin’s crypto journey began in December 2016 with Bitcoin but after participating in a particular ICO he pivoted his focus to hosting a large number of affordable nodes for himself. After building the product, which was initially supposed to be for himself, he decided to offer the hosting service to the public. 

      During a June 24th interview with CoinDesk, Konstantin likened “ETH 2.0 to playing Diablo on nightmare mode” with regards to the concerns about slashing and that he did not sleep well for “months”. Konstantin’s commitment to quality for Allnodes’ users is evident in the company’s performance and approach to success. 

      How does Allnodes compare to other Staking Service Providers? 

      Unlike some staking service providers like ANKR or Blox Staking, the Allnodes platform is not open source and as mentioned before, while ETH staking participants retain custody of their private keys Allnodes does require users to deposit their validator keys when activating an ETH 2.0 validator node.

      While other services and exchange fees can range from 10-20% of staking rewards, Allnodes is one of the most economical staking service providers offering a competitive $5.00/month.They offer 100 Mbit/sec and 1Gbit/sec bandwidth plans. Similar to Blox Staking, if a node operator decides to leave Allnodes they are free to notify the Team and launch their own node without fear of slashing penalties. 

      In ConsenSys Q1 2021 Ethereum Staking Report Update Allnodes was the top performing staking provider; leading the industry in total earnings relative to CodeFi.

      Top performing Staking Providers
      https://consensys.net

      How to start with Allnodes? 

      Allnodes has an active Discord, Telegram, Twitter and Reddit community in addition to many YouTube tutorials and reviews. If you want to join the more than 3800+ Ethereum validator nodes there are helpful videos online including a step by step staking guide from the Boxmining Youtube Channel. 

      Also, if you’d like to use promo code – Ethereum3 you can unlock free months of staking service free from Allnodes.

      Conclusion 

      From the Team’s sleek and intuitive UI platform for monitoring node activity & investment performance to the ease of use when simplifying the process for users to stake, delegate, or host a masternode Allnodes offers best in class performance and service to their customers. Allnodes’ 99.90% SLA uninterrupted node uptime offers its customers peace of mind when it comes to concerns of slashing penalties. While customers must trust Allnodes with their validator keys they are still able to custody their private keys.  

      The Allnodes’ non-custodial platform approach signals a market-trend I hope continues to grow in the crypto-space: balance between trust, security and user experience. The service they provide aims to empower crypto community members who may not be technical enough to manage their own validator nodes but who still wish to participate in securing their network’s ecosystem. I think while many folks in the crypto-ecosystem can find room for improvement when it comes to how companies treat their customers, the Allnodes Team aims to exceed their customers’ service expectations! They don’t just want to win your business by being affordable, they aim to build trust and relationships with their customers and I wish more entities could take a page out of Allnodes’ playbook. 

      As we inch closer to the upcoming “2.0 beacon chain merge” and as the consensus mechanism: ‘proof of stake’ continues to gain momentum and adoption, the demand for trustworthy and reliable service providers that cater to the non-technical will only continue to grow – I’m proud of what Allnodes has accomplished and think they have a bright future ahead of them as they continue to meet the market’s needs with quality and consistency. 

      About The Author

      Joel O'Connor

      is a current Research Analyst Intern at S2F Capital LP. He specializes in on-chain data analysis & passive yield generation. Before joining S2F he worked for a private United States Supply Chain firm and has been actively investing in the Crypto Ecosystem since 2015.

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