Covalent (CQT) moves staking back to Ethereum, introducing light client for data validation

2024-04-10 08:17:18

Covalent (CQT), the leading project providing data in the Web3 industry, announced that it will move staking operations from Moonbeam back to Ethereum. This decision is the first step in Covalent’s journey to becoming the Ethereum Wayback Machine (EWM), the long-term data supply solution for Ethereum and all Ethereum Virtual Machine (EVM) compatible blockchains. Staking CQT on Ethereum will strengthen the infrastructure for Covalent Network and open the next development direction for the ecosystem.

Transferring staking back to Ethereum will aim to resolve the following inadequacies that Covalent Network is facing:

Security: By transferring staking back to Ethereum, users will not need to transfer cross-chain assets through Wormhole, eliminating the risk of using a bridge.
Convenience: Covalent will not need to use Moonbeam’s GLMR token, reducing transaction steps for users.
Accessibility: Staking on Ethereum will be open to help Covalent use more support tools, such as Dune Analytics, increasing transparency and providing a comprehensive view of the network’s performance. net.

Currently, the staking transfer process is still in the stage of thorough appraisal and security testing, and will be announced gradually over time following a transparent governance process. In preparation, Covalent in the near future will improve user experience, reduce risks and increase uses for the CQT token.

In addition, Covalent is about to increase the number of transaction verification operators in the network in preparation for collecting, standardizing and storing on-chain data of Ethereum and Dencun blobs. Thanks to this, the project can further expand the stored data set to more than 225 blockchains - all of which can be queried through the Unified API.

In 2024, Covalent also plans to launch a new type of operator with the temporary name Light Client, further increasing the number of operators that can contribute to the security and growth of the network. The light client software will have a compact size, allowing it to operate on common electronic devices on the market. Light client operators will not be required to hold 175,000 CQT (about 50,000 USD) to participate in data validation, as well as have reduced technical and operational conditions.

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