To avoid user confusion, the Ethereum community has stopped using the terms Eth1 and Eth2. Henceforth, Eth1 will be referred to as the execution layer and Eth2 as the consensus layer. Please click here for the latest information on the Ethereum upgrade (formerly known as ETH 2.0).
Publication date: May 2021
Recently, InfStones, in partnership with imToken, launched an Eth2 non-custodial wallet staking service. The service is now live on the imToken wallet for use. As a natively integrated wallet feature, imToken users can directly stake Ether (ETH) and set up Eth2 validator nodes in the wallet interface, participate in Eth2 proof-of-stake (PoS) consensus, and receive an annualized return of approximately 4%.
The article introduces the details of the Eth2 non-custodial wallet staking service jointly launched by InfStones and imToken. The service is the best Eth2 staking solution, allowing users to control their private keys as professional service providers only operate and maintain nodes. This ensures asset security and reliable validator nodes.
Part 1. Separation of Withdrawal Key Pair and Signing Key Pair
The functionality of the Eth2 non-custodial wallet staking scheme depends on the design of separating the withdrawal key (used for withdrawing staked funds and rewards) and the signing key (used for validating block creation and signature). In Eth2, the private keys for controlling assets and running nodes are separate, enabling service providers to only run nodes and not touch user assets.
Part 2. Generation of Eth2 Private Keys in imToken
imToken fully supports the creation of Eth2 wallets, starting from version 2.9.1. When a user uses the Eth2 staking service, an Eth2 wallet is automatically created. The mnemonic phrase for the Eth2 wallet is similar to the one used to stake in Eth1. The setup allows the user to seamlessly manage assets on Eth1 and Eth2 using one mnemonic phrase.
To ensure the integrity of private keys and mnemonic phrases, imToken adheres to the principle of user possession. All mnemonic phrases and private keys are securely stored locally on the user's device, and all synchronization and migration mechanisms are prohibited (including system-level data migration on mobile phones). This guarantees the security of private keys and mnemonic phrases.
Part 3. Signing and Monitoring of Staking Transactions
When a user initiates a staking request, imToken sends the user's withdrawal public key to InfStones. InfStones allocates the corresponding signing keys based on the number of requested validation nodes and generates the staking authorization information based on the withdrawal public key and signing public key according to Eth2 requirements. InfStones then returns the authorization information to the imToken wallet for the user to sign and send the transaction.
After signing the transaction, InfStones monitors the confirmation status of the staking transaction on Eth1 and Eth2 (typically confirmed 15 hours after confirmation on Eth1).
Part 4. Establishing and Maintaining Validator Nodes
Once the staking transaction is confirmed on Eth1, InfStones establishes a compatible validator node. The node imports the corresponding signing private key to complete normal block signing and creation and obtain the generated node rewards. Please note that the rewards directly enter the Eth2 wallet managed by the user's withdrawal private key, not InfStones' wallet. Therefore, InfStones cannot charge any intermediate fees.
To ensure stability, high online rate, and quality operation of the node, InfStones runs all validator nodes on an enterprise-level infrastructure framework, including 24/7 monitoring and disaster prevention, multi-cloud and multi-client deployment, node backup redundancy, and more.
Part 5. Validation Node Status and Reward Inquiry
From the staking transaction's transmission to the validation node's long-term operation, the status of the transaction and node can be viewed in the imToken wallet interface.
When the node enters an active state, users can see an automatic increase in their Eth2 account balances daily and node-related information such as status, online rate, and reward rate.
Our Eth2 non-custodial wallet staking service makes users feel like they are running one or more validation nodes, participating in the transaction validation and block packaging of Eth2, and contributing to the great historical process of upgrading Ethereum from PoW to PoS.