An Ethereum digital bond is a dream for any ETH fan. However, ETH 2.0 changes that staking in the famous network and will undoubtedly open many new opportunities. Therefore, the possibility of converting Ethereum's entire wealth of $ 26 billion into productive assets is highly probable.
The concept of an Ethereum digital bond is similar to conventional bonds in many ways. Ether Capital president Stefan Coolican says it is staking will eventually lead to bonded products on the Ethereum blockchain with similar utility potential. Suddenly, the whole Ethereum digital bond scenario seems possible.
An Ethereum digital bond is truly possible
Coolican states that the introduction of the staking it would change Ether from a simple digital commodity into a financial asset capable of paying dividends to its users. ETH new age does not involve the counterparty risks associated with a traditional bond as the stakes would be on yield rather than on a counterparty.
Lo staking ETH would most likely represent an intrinsic return asset. Interestingly, the risks would be related to the ETH protocol. They would also guarantee dividends to users, who in turn would support the concept of a value store that the ETH community strongly believes in.
Towards ETH 2.0
Furthermore, the implementation of proof-of-stake would drastically reduce its inflation rate to almost zero. As a result, a limited ETH offer means that it will inherit many features of real money.
If the digital bond project becomes reality then, the ETH would possibly assume all six characteristics of money: durability, portability, acceptability, divisibility, uniformity and limited supply.
Despite this, a true digital bond with Ethereum may not happen anytime soon. Theoretically, ETH's planned path will run into a myriad of problems before the complete transformation of into staking by Ether. Critics, such as Skale developer Konstantin Kladko, have issued their warning about ETH 2.0's flaws.
He warns that the current shift towards the staking it could prove embarrassing for Ethereum as ETH lacks the capital for such a transformative phase. Kladko further elaborated on this "fatal flaw" argument by stating that building a one-way bridge means users will demolish 32 ETH to get the staking.
He adds that ETH1 will always be more than ETH2. It remains to be seen how an Ethereum digital bond can emerge positively from such demanding criticisms.
In a process of staking, a general user can lock an amount of a given cryptocurrency in a wallet and contribute to the blockchain by physically supporting the network in exchange for rewards.
In theory, anyone can participate in the staking on any blockchain that uses the proof-of-stake consensus technique. The proof-of-stake, in fact, introduces several features, which allow anyone to participate in the staking.
Those who do not have much experience with the classic exchanges, however, can approach the world of cryptocurrency trading with software like Bitcoin Pro - which offer the possibility to exchange cryptocurrencies manually (advanced users) or automatically (beginners).
