The Block has reported that Coinbase has hired Luke Youngblood, formerly a principal solutions architect at Amazon Web Services, to build out products tied to staking and governance.
The press release said, “These new products will provide Coinbase Custody clients with the ability to interact seamlessly with crypto-networks while maintaining the upmost security of their assets in Custody.”
The move is in response to “Mining 2.0” strategies have increased in popularity among crypto hedge funds, and firms looking for new ways to make money in the bear market. As The Block says, “These strategies aim to squeeze alpha through active participation in crypto-networks with wide-ranging opportunities, including staking, providing validation services, or provisioning resources (e.g. compute power) directly to decentralized networks.”
Staking solutions more broadly refer to mechanisms whereby proof-of-stake investors have the potential to earn a form of “interest” on their holdings. This works by investors depositing tokens as collateral (“staking”) in a digital wallet, which functions as a node that engages in a competition to validate blocks on the network. Some have argued that such PoS systems can provide participants with an alternative source of revenue amid the crypto market slump, by comparison with Proof of Work, which uses mining.
Youngblood, who worked at Amazon for nearly three years, previously held positions at numerous tech firms as an engineer as well as crypto network Tezos, as explained by Coinbase, “Luke is the founder and CEO of Blockscale, an early pioneer of blockchain and crypto technologies. In 2018, he helped launch the Tezos network by creating the staking infrastructure for the Tezos Foundation, becoming the largest decentralized proof of stake validator in the world overnight.”
It also says that in his new Coinbase role he would “provide Coinbase Custody clients with the ability to interact seamlessly with crypto-networks while maintaining the utmost security of their assets in Custody.”