Coinbase And Google Cloud Join Forces To Secure Ethereum With EigenLayer

In a bid to step up their involvement in the blockchain space following the launch of EigenLayer’s mainnet, tech giants Coinbase Cloud and Google Cloud have joined the project as operators, alongside other industry players.

What Happened: “Coinbase Cloud is proud to be among the first partners,” the company stated, highlighting its commitment to providing a “trusted” platform for users to delegate their staked Ethereum ETH/USD or derivative tokens.

Google Cloud’s Sam Padilla revealed his team’s long-standing involvement with EigenLayer, dating back to their participation in the testnet since November.

This move further strengthens Google’s presence in the web3 infrastructure arena, where they already offer services like node hosting and validator management for several blockchains.

Deutsche Telekom, HashKey Cloud, and other prominent names like Figment and Nethermind have also joined EigenLayer as operators.

What is EigenLayer And How Does It Work?

Launched on Tuesday, EigenLayer’s mainnet introduces a new layer of security for the Ethereum network.

This “data availability layer,” dubbed EigenDA, allows users to delegate their staked ETH to a chosen operator.

These operators, in turn, decide whether to run an actively validating service on the network.

By participating in the EigenLayer protocol, operators provide services to other applications and process their transactions in exchange for rewards.

Also Read: Bitcoin Drops Below $69K, Pulling Ethereum, Dogecoin Down With It

This additional security layer is derived from the already staked ETH on the Ethereum network. For example, operators of the data availability solution will enable Layer-2 scaling solutions — to incorporate it for their scaling needs.

EigenLayer operators allow Ethereum stakers to delegate their staked assets, whether native ETH or derivative tokens, to establish a shared security model.

This delegation also enables stakers to engage in multiple blockchain applications while their ETH remains staked on the Ethereum network.

However, operators are not currently validating any services.

EigenLayer stated that it is allowing the operator and AVS marketplace to develop and stabilize before introducing in-protocol payments and slashing to the mainnet later this year.

What’s Next: The evolving landscape of blockchain security solutions like EigenLayer raises crucial questions for investors and developers alike.

Benzinga’s upcoming Future of Digital Assets conference on Nov. 19 provides a unique platform to delve deeper into these topics.

Image created using artificial intelligence with Midjourney.

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