What is Rocket Pool?

What is Rocket Pool: The First Decentralized Deployment Protocol for Ethereum 2.0

Rocket Pool (RPL), also known as Rocket pool, is the first DApp that lets its users seize opportunities staking in Ethereum 2.0.

Ethereum's gradual upgrade to a Proof of Stake (PoS blockchain) is opening up new opportunities in the world of decentralized applications (DApps).

Although the update is expected to be finalized in early 2022, Ethereum has already introduced an interim PoS platform called Beacon Chain that runs in parallel with the main platform, Ethereum 1.0.

By utilizing the PoS verification model, Beacon Chain allows participating nodes to earn cryptographic rewards through stakeout.

Rocket Pool's native token, RPL, trades for around $32, with a total supply of 18 million tokens and a market value of $582 million.

What is Rocket Pool (RPL)?

What is Rocket Pool (RPL)

Rocket Pool is a decentralized financial (DeFi) app that offers opportunities to earn cryptocurrency rewards with staking in Ethereum 2.0.

It is the first app of this nature. Platform users can win staking prizes in Ethereum 2.0 without having to satisfy the heavy financial demands imposed on them. About (nodes) full checkers.

What is Staking and Delegated Staking

Staking is the process by which nodes (nodes) in a PoS blockchain verify the authenticity of transaction blocks and earn rewards in cryptocurrencies for participating in the verification.

To set up a verifier node on a PoS platform, blockchain users must commit some computing hardware and cryptocurrency funds.

In Ethereum 2.0, the minimum requirements for a verifier node include committing at least 32 Ether (almost $100.000). For many users this is simply inaccessible.

Some blockchains, such as Tezos (XTZ) and Eos (EOS), allow delagated staking, in which any user on the network can delegate staking rights to a full verifier node by “lending” their cryptographic backgrounds to the verifier.

This delegated staking mode generally does not require users to commit large amounts of cryptoactive funds. Unfortunately, Ethereum 2.0 does not allow delegated staking. That's where the Rocket Pool protocol comes into play.

Rocket Pool Staking

Rocket Pool has been in development with several beta versions since 2016 and is now ready for its mainnet launching on October 6th. Users will be able to staking their cryptocurrency funds at ETH through the platform, and the protocol will manage accumulation and disbursement, and staking rewards.

When you deposit your ETH into the protocol, you will receive rETH tokens, the protocol tokens used to protect your staking and accumulate rewards.

When you decide to unlink, you can exchange your rETH, along with your accumulated rewards, back to ETH.

rETH is not pegged to ETH, but its swap rate to ETH has been remarkably stable in recent months.

The rETH to ETH swap rate has been remarkably stable since the end of May 2021 (Source: CoinGecko.com)

The rETH to ETH swap rate has been remarkably stable since the end of May 2021 (Source: CoinGecko.com)

In addition to this affordable rETH-based staking, Rocket Pool also offers more sophisticated users a platform to function as a full-featured staking node for Ethereum 2.0.

This mode offers much more rewards than a simple RETH staking.

One might wonder why a sophisticated blockchain user capable of acting as a verifier node needs to use Rocket Pool, when they can staking directly with Ethereum 2.0.

First, Rocket Pool allows complete staking of nodes through its platform with only half the usual funding requirements of Ethereum 2.0.

While Ethereum asks for 32 Ether to be confirmed, Rocket Pool only requires 16 Ether.

Additionally, Verifier nodes can leverage Rocket Pool's technical platform to quickly start deploying all nodes without all the necessary technical configuration.

How Does Rocket Pool Work?

The Rocket Pool itself resides in Ethereum's flagship blockchain, Ethereum 1.0. It accesses the new PoS Ethereum 2.0 blockchain, also known for now as the Beacon Chain, to perform staking operations.

Cross-platform access and interoperability are enabled through Oracle DAO, an important part of Rocket Pool architecture.

Oracle DAO is essentially a number of nodes on the platform that have the responsibility of verifying transactions in Beacon Chain and Ethereum 1.0 and signaling the results back and forth between the two networks.

Interoperability and transaction verification is based on a consensus mechanism whereby at least 50% of the Oracle nodes must confirm the authenticity of the transaction.

At the launch of genesis next month, the Rocket Pool plans to have around 15 to 20 Oracle nodes. These important nodes will include the project's peers in the block chain community and the ecosystem in charge of the role of the initial Oracles. Oracle DAO will act in a completely decentralized and independent way from the Rocket Pool.

Once the project is released, new Oracle nodes can be added to the platform. New nodes can join only by inviting an existing Oracle node and posting a “substantial” RPL link. In addition, your application will need to be approved by at least 50% of the current nodes.

Rocket Pool uses a dual token model for its functionality. The basic platform token, RPL, is used for governance and as a transactional token for full node operators on the platform.

The rETH token is used as a transactional token for staking and accumulating rewards in the most accessible delegated staking format.

Who's Behind the Rocket Pool?

Rocket Pool was founded by Australian blockchain developer David Rugendyke in late 2016. The main motivation for Rocket Pool development was to democratize blockchain staking access, making it available to a wider group of users.

Rugendyke serves as the project's CTO, while another seasoned software engineer, Darren Langley, recently became the project's general manager. In 2018, Langley was one of the main developers working on the protocol.

Rocket Pool is headquartered in Brisbane, Australia. The company has raised an undisclosed amount of Venture Capital (VC) from an initial round in May 2018. So far, this is the only VC funding from the Rocket Pool.

Funding came from ConsenSys Ventures, an arm of ConsenSys, a VC block chain solutions development company.

RPL Currency Price History

Although Rocket Pool is released in October, the project has been in active development and has regularly released beta versions over the past 4 years. It mined and distributed the entire RPL supply of 18 million tokens at the end of 2017.

Until April 2020, RPL trading volumes on exchanges were minimal. As the final form of the protocol began to crystallize, RPL trading volumes soared.

In April 2020, the RPL was worth about $0,50. It then rose steadily and hit the $10 mark in March 2021. Taking advantage of the general market bubble, RPL hit a local peak of $23 in mid-May.

 

As the market bubble burst, the RPL dropped to $8-$9 in July. Its decline during the explosion was less severe than for many others. cryptoactive.

Likewise, unlike many others criptomoedas that have not fully recovered from the bubble burst, the RPL has been on a strong increase since July. Now she has reached the heights of $30 and the deals are $32. These increases may well be motivated by pre-launch enthusiasm.

What is the Future of Rocket Pool?

As the Rocket Pool will be launched next month (October 2021), it is difficult to make an assessment of the protocol's future without an initial reaction from the market.

The overall commercial concept of the project is very promising. It is also quite unique as there are no other platforms offering similar services as of now.

In that sense, Rocket Pool is poised for early success, capitalizing on its first-to-release advantage.

However, as Ethereum unfolds its PoS update, more Rocket Pool-like DApps will likely hit the market. When these competing platforms emerge, their presence will test the Rocket Pool's viability in the marketplace.

Summarizing About Rocket Pool

Ethereum's move to a full PoS verification model creates opportunities for new DApp concepts.

Rocket Pool has taken advantage of these opportunities and offers a unique way for a wide variety of users to earn rewards with staking on Ethereum.

As Ethereum 2.0 does not support its delegated staking, the Rocket Pool functionality democratizes staking access, making it available to any interested user.

You no longer need a heavy deposit or computing resources to become a staking on Ethereum.

Since Ethereum 2.0 does not support delegated staking, Rocket Pool's functionality democratizes access to staking, making it available to any interested user. You no longer need a heavy deposit or computing resources to become a staker on Ethereum.

In addition, staking complete nodes is also easier using Rocket Pool. While Ethereum requires 32 Ether to qualify as a Verifier node, Rocket Pool only has a 16 Ether requirement. In addition, the app allows you to become a verifier node faster and with much less technical setup.

After four years of development and beta releases, Rocket Pool is ready to launch its core network on October 6, 2021. The protocol's smart contract address is in Ethereum 1.0, where all transactions with protocol users happen .

The actual staking will be performed in Ethereum 2.0, and interoperability between the two platforms is enabled through Oracle nodes, a group of 15 to 20 Oracle DAO verifiers.

The Rocket Pool stated that Oracle DAO acts in a decentralized manner and is completely independent of the protocol itself.

A unique concept in itself, the Rocket Pool is likely to achieve early success due to the first mover advantage.

Rocket Pool's commercial viability will only be thoroughly tested when similar applications emerge and competition heats up.

 

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