Silicon Valley-based venture capital giant Andreessen Horowitz, has invested $70 million into a new crypto project centered around the staking of top smart contract platform Ethereum (ETH).

Top executive at the firm, Chris Dixon, shared the news on Twitter on Friday:

In the announcement, the firm described its decision to invest as follows:

“ETH has significant barriers today. Perhaps most notably, there is a 32-ETH minimum required to operate a node. This alone prevents a significant number of network users from running their own validator, and there is no native method for delegating one’s stake to circumvent these minimum capital requirements…

Because of these challenges, centralized exchanges have been best-positioned to offer staking services due to efficiencies of scale. Companies like Binance, Kraken, and Coinbase can easily pool their users’ assets (eliminating the minimum capital requirements), stake it on their behalf (eliminating the operational burden), and issue a liquid market for this staked asset (unlocking liquidity and allowing users to swap back from staked ETH to ETH).”

Adding:

“These services are valuable for their users, creating a big opportunity for a decentralized alternative. That’s why we’re excited to invest in Lido, an effective, decentralized staking platform.

It offers one of the easiest ways to stake ETH and other proof-of-stake assets today, while striving for decentralization through the DAO’s governance. Lido democratizes staking.”

Dixon added on Twitter:

“We want centralized staking services, decentralized staking pools, and individual validators to all play a role in securing Ethereum.”

The post Andreessen Horowitz Invests $70 Million in Ethereum Staking Development appeared first on iGaming.org.

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