XHash: In the ETH 2.0 era, is non-custodial staking the right solution?

There is no denying that the LSD circuit is one of the hottest narratives at the moment, with protocols like Lido bringing so much to the market. In reality, however, there are still some pain points with LSD that cannot be ignored, and these issues present many challenges for institutional clients and individual participants as well.

First, institutional clients require assets to be under their control in order to keep their funds safe. This means they need to invest a lot of time and resources to learn and operate and maintain the nodes, as well as purchase expensive hardware equipment. This is a significant cost and technical hurdle for many institutions.

Likewise, there are many difficulties for individual participants who want to participate in and earn from staking. They need in-depth expertise in staking and spend a lot of time and effort to purchase and set up hardware equipment that meets the requirements. In addition, they need to run the validator node online without interruption and upgrade the client regularly. This may be too cumbersome for the average individual and does not guarantee a consistent return.

In addition to individual participants, exchanges, financial institutions, and other cryptocurrency-holding organizations face similar problems. They need to assemble specialized teams to handle staking and purchase high-performance hardware equipment, adding cost and management complexity. Similarly, decentralized organizations such as Lido need to rely on third-party operatoers to achieve the goal of decentralization, which introduces additional risks and dependencies.

In addition, some cryptocurrency-holding institutions may have their own arbitrage business needs that cannot be met by traditional staking service providers. At the same time, many staking participants also want the flexibility to unstake their assets when needed, but staking services in the traditional way are often illiquid.

So it is against this backdrop that XHash was created to provide a simple, secure and efficient pledge solution for both institutional clients and individual participants. Users can create their own verifier nodes by completing a few simple steps, and XHash’s dedicated team will manage and maintain the operation of the nodes, allowing users to simply sit back and enjoy the benefits without having to worry about the technical details or the purchase and maintenance of hardware equipment. This significantly lowers the barrier to participation in staking, providing a more convenient and reliable staking experience for both institutional clients and individual participants.

XHash: Unmanaged ETH2.0 staking Infrastructure

XHash is a Web3 infrastructure provider dedicated to building a stable,reliable and secure blockchain infrastructure to improve the user experience in Web3 development. As its core business, XHash provides POS (Proof of Stake) staking services and a multi-chain API.

XHash has built an innovative non-custodial ETH2.0 staking service that provides users with the following services:

1. Non-custodial ETH staking service
   Users can only send their Validator keys to XHash platform, keep full control of their Withdraw keys to maintain control of their assets without having to hand them over to a third party.

2. Customized API service
   XHash provides a personalized watchdog API service, enabling users to flexibly monitor and manage the operation of staking nodes.

3. 24/7 Support
   XHash provides 24/7 technical support to ensure that users get timely help and answers in the process of use.

XHash provides staking services with the following features:

1. Customer take full control of their staking assets.
   XHash provides a non-custodial staking service where the staked assets remain in the hands of the customer, and XHash only assists in the operation of the staking nodes and does not touch or control the assets.

2. Customers securely obtain revenue
   Customers simply provide XHash with their Validator Key and XHash will activate a node agent to run the pledge node, ensuring customers secure access to their earnings.

3. Provide outsourcing of staking operations
   Cryptocurrency-holding organizations can outsource their staking operations to XHash, saving significant development time and labor costs and allowing the organization to focus on its core business.

4. Cooperation with decentralized operators
   XHash cooperates with decentralized operators to provide professional staking services to help them better achieve their decentralization goals.

5. Support arbitrage business of self-owned nodes of large customers
   XHash supports the arbitrage business of large customer-owned nodes by opening a customized API, allowing customers to flexibly decide the order of transactions to meet their specific needs.

6. Providing Managed Liquidity Solutions
   In addition to staking returns, XHash also offers a hosted liquidity solution through NodeDAO’s LSD protocol that allows customers to receive both staking returns and liquidity tokens.

In short, XHash aims to provide users with easy, secure and efficient staking services and to create a better Web3 experience for institutional clients and individual participants through innovative solutions.

Non-Custodial Pledges

XHash offers an non-custodial staking service designed to simplify the process of Ethereum staking and reduce the burden on users.

Staking is the process of participating in network consensus by running an Ethereum node connected to the mainnet and depositing 32 ETH to activate the validator. However, individual participation in staking requires purchasing hardware, learning knowledge and spending a lot of time to build and maintain the system, and there is no guaranteed return.

XHash’s Non-custodial staking service solves these problems. Users can create their own Validator nodes in a few simple steps, and XHash’s dedicated team does the rest.

XHash offers both Quick Mode and Expert Mode staking options, so users can choose the either that works for them.

Quick mode is a one-stop way to generate validator key pairs and complete staking deposits by downloading the XHash Quick staking client, and then uploading the keystore file to XHash to start staking.

Expert mode allows users to create validators step-by-step by following the instructions on the official Staking Launchpad and uploading the validators keystore file to XHash’s official website to start the validator nodes.

XHash’s Non-custodial staking service makes it simple and easy to participate in staking, whether it’s a quick start or setting up specific requirements, users can easily enjoy the benefits of staking without having to worry about the technical and operational complexities of the task.

Security Assurance

XHash takes user key security and server security very seriously and has taken a number of measures to safeguard them.

To protect your validator keys, XHash uses a multi-layer encryption and storage strategy.

Users generate their own validator keys and passwords on the client side and upload them to the server via an SSL encrypted channel. On the server side, the key password will be transmitted with asymmetric encryption and decrypted in the background.

To further enhance the security of the keys, XHash also introduces the concept of salt and master key.

A random salt value is generated for each session and a subkey is derived together with the master key. The user password is stored in the database after symmetric encryption of the subkey. The master key, on the other hand, is stored only on a dedicated encryption server to ensure its confidentiality. By this design, the user’s data is only at risk if both the master key and the database are compromised.

In addition, XHash places great emphasis on server security.

The staking servers have a redundant architecture with two backup systems in each region to ensure high availability and fault tolerance.

In addition, it uses AWS cloud servers to provide a secure and reliable infrastructure, and is deployed in multiple regions to prevent problems in one region from taking the system offline.

XHash has built its own monitoring system and alarm system to detect anomalies in a timely manner and notify engineers to deal with them. In addition, servers are monitored 24/7 by dedicated personnel to ensure system stability and security.

With these security measures, XHash aims to provide users with a safe and secure staking service that will continue to protect their keys and data and keep the server running in a secure and stable environment.

Conclusion

As the blockchain industry further evolves and the ETH 2.0 network matures, staking will continue to receive attention as an important consensus mechanism.

XHash will focus on simplifying the staking process and providing a more user-friendly and intelligent staking service. It will continue to improve its user interface and tools to meet the needs of different users and to help users initiate staking more easily and gain revenue.

In addition to the ETH2.0 staking service, XHash will also consider expanding to other blockchain networks to provide support for multi-chain staking. It will work with more decentralized operators to promote the blockchain ecosystem and provide users with more diverse and personalized staking options.

Through continuous innovation and security measures, XHash will create a better non-custodial staking experience for both institutional customers and individual participants, helping to drive the widespread adoption and development of blockchain technology.

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