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HomeNewsEthereum's Restaking Service EigenLayer Sees Massive Inflows, Revolutionizes Blockchain Security

Ethereum’s Restaking Service EigenLayer Sees Massive Inflows, Revolutionizes Blockchain Security

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  • Initial launch phase termed “beta” by Eigen Labs CEO, features limited functionality with future expansions anticipated.
  • Launch excludes in-protocol payments and slashing mechanisms, with plans for these features to be added later this year.

EigenLayer, recognized for its “restaking” capability aimed at reinforcing Ethereum’s security, has started its service on the Ethereum mainnet. This launch is paired with the introduction of EigenDA, a data-availability service developed by EigenLayer’s creators. 

Before this initiation, EigenLayer had already secured $12 billion in user deposits, underscoring the anticipation for its approach to enhance security via pooled assets. This method intends to broaden Ethereum’s protective measures to include other cryptocurrency platforms.

The premise of EigenLayer is to permit newer blockchain protocols to access the established security infrastructure of Ethereum. It achieves this by enabling Ethereum stakers to merge their staked ETH into a larger collective, thereby securing additional rewards. 

Related: Ethereum’s Restaking Surge May Pose Hidden Risks, Injective Rival Lures Big Money

The aggregated ETH is then utilized to safeguard various auxiliary networks and services, such as blockchain bridges, exchanges, and oracles, under what is termed actively validated services (AVS).

EigenDA stands out as the first AVS to be launched, providing a mechanism for blockchain entities to store and manage data efficiently. This initial phase of EigenLayer’s deployment will feature a limited functionality set, with Eigen Labs CEO Sreeram Kannan referring to it as a “beta” phase in discussions.

More about: New ETH ETF Filing Boosts Ethereum (ETH) Price by 8% to $3,700, SEC Review Nears

At present, while AVS beyond EigenDA can register with EigenLayer, they are yet to be fully operational. The current stage of the launch notably excludes specific functionalities like in-protocol payments from AVS to operators and a “slashing” mechanism for penalizing unethical validators. These aspects are planned for integration in later updates as the protocol evolves.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: info@ethnews.com Phone: +49 160 92211628
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