How to stake Solana (SOL) in 2025: A step-by-step guide for beginners
Key takeawaysStaking Solana allows you to earn passive income through staking rewards while participating in network governance.There is no minimum requirement for staking Solana, but the practical minimum is around 0.01 SOL.All you need to start staking Solana is a SOL-compatible wallet.Staking is considered one of the safer ways to participate in crypto ecosystems.Solana is a blockchain network known for its fast transaction speeds and extensive ecosystem of decentralized applications (DApps). It also combines the proof-of-stake (PoS) and proof-of-history (PoH) consensus mechanisms, allowing you to stake its native currency, SOL (SOL), to earn rewards. This Solana staking guide walks you through the Solana staking process and explains why staking could be a smart move, especially if you’ve been wondering how to earn passive income with SOL.What is Solana staking?Solana staking consists of locking SOL into a cryptocurrency wallet. The process rewards you in the following ways:Staking rewards: You earn rewards for staking SOL — a percentage based on how much you’ve staked, Solana’s current inflation rate (which fluctuates and is set to decrease every year), the total amount of SOL staked on the network, and how long you’ve been staking overall.Governance: Staking gives you a say in governance, allowing you to vote on proposals that shape the Solana network. This approach prioritizes those with the largest investments, assuming they’ll act in the network’s best interest.Network security: Staking increases security to create a stable investment environment. By staking, you’re directly contributing to Solana’s health and longevity. That said, if a few wallets stake large amounts, one could argue they’re centralizing the network.If you earn rewards staking SOL, they’re paid out every two days — a period known as an epoch. When staking SOL, you’re delegating funds to a Solana representative (a validator.) Validators process transactions, produce blocks, and vote on network proposals. It’s essential to choose a validator that aligns with your vision for Solana, as they’ll be voting in your stead, much like an elected official in traditional governments.Validator votes are stake-weighted. The more stake a validator has, the more weight their vote carries. Solana validator vs. delegator: By delegating funds to a validator, you become a delegator. The validator’s job is to vote in the network’s best interest. It’s your job to choose reputable validators that keep the network safe. Did you know? Solana is one of the fastest blockchains in terms of transactions per second (TPS). It currently averages around 1,128 TPS, with a theoretical max of 65,000 TPS. Staking Solana for beginnersThere are a few things to consider as you prepare to stake Solana.Understanding staking methodsOn the surface, staking is quite simple; however, there are actually two staking methods — each affects your SOL liquidity.Liquid staking: Earn rewards while retaining control of your SOL’s liquidity. When you liquid stake, you receive liquid staking tokens (LSTs) equivalent to the amount of SOL you stake. You can use those LSTs in Solana’s decentralized finance (DeFi) applications as you would if you weren’t staking funds.Native staking: Native staking is the original method that locks your funds away, allowing you to earn rewards and participate in governance. However, you cannot use your funds without pulling them out via the unstaking process. This process is beginner-friendly but limits what you can do with your SOL.The difference between the two is flexibility. Native staking is less flexible but easier for beginners, while liquid staking retains your liquidity for use in DeFi and other applications.Solana staking tax 2025In the United States, Solana staking rewards are subject to income and capital gains tax.Income tax: You’re required to pay income tax on the value of SOL at the moment you unstake it. You also pay income tax on staking rewards when you gain the ability to withdraw them.Capital gains tax: You’re required to pay capital gains tax once you sell or convert that SOL.How to stake SolanaNow, let’s get into the Solana staking tutorial. Choose a Solana walletFirst, you need a wallet to store and stake your SOL. Most Solana wallets have built-in staking capabilities. This guide uses the Phantom Wallet for demonstration purposes.Download Phantom Wallet from its official website by clicking the “Download” button.Next, click “Create a new wallet.”You’ll be asked to continue with an email or a seed phrase wallet. Click “Create a seed phrase wallet.”Enter a password, and proceed to the recovery phrase screen. Write down your recovery seed phrase on piece of paper, check the confirmation box, and click “Continue.”Create a username, click “Continue,” and you’ll have created a Solana wallet. Fund the walletFund Phantom with SOL by either transferring SOL from another wallet or buying it with a debit/credit card via the “Buy” button.Phantom partners with companies such as Robinhood or Topper to facilitate card payments, allowing you to buy from within the wallet interface.After funding your wallet, it’s time to start staking.Stake your SolanaOpen your token list and click on “Solana.”Select “Start earning SOL.”Now, choose between “Liquid Staking” or “Native Staking.”Liquid staking is typically done via a third-party provider. Phantom integrates with Jito’s liquid staking platform, enabling you to receive JitoSOL LSTs when you liquid stake.If you choose to liquid stake, Phantom will detail your estimated annual percentage yield (APY) and how much JitoSOL you’ll receive in return for staking.JitoSOL will appear in your token list.JitoSOL will appear in your token list.If you choose native staking, you must commit to a validator. Phantom will list validators in order of how much SOL is staked to them and their estimated APY.Select a validator, enter how much SOL you’d like to stake, and click “Stake.” The network will create your staking account, and you’ll start earning rewards in a few days.Congratulations, you’re successfully staking SOL.Did you know? Validators who act out of turn or experience significant downtime will have their rewards slashed, also reducing the rewards of those who stake with the validator. How to unstake SolanaWhether you choose liquid or native staking, here’s how to unstake your funds. You might unstake if:You want to convert SOL: If you want to swap or sell your SOL, you must unstake the funds first.You want to stake elsewhere: If another network catches your eye, you’ll have to unstake your Solana funds to transfer them for staking on another network.Validators act up: If your validator acts outside the network’s best interest, you may want to unstake and delegate to another validator.Unstake natively staked tokensTo unstake natively staked tokens, click on “Solana” in your token list.Next, click on “Your stake.”Select the validator you want to unstake from and click “Unstake.” Then, select “Withdraw Stake” to pull the funds back into your wallet. The validator will show “Inactive” once you’ve unstaked.Unstake LSTsTo unstake your LSTs, select them in your token list.Click “More” in the options list, then select “Unstake.”If you’re using Jito as your LST provider, clicking unstake will take you to Jito’s platform. Here, you have two options: unstake immediately or delayed unstaking.Unstake immediately: Immediate unstaking costs a small fee, based on the amount you are unstaking. You can pay additional fees to prioritize your transaction or tip validators. Finally, you can adjust your slippage tolerance.Delayed unstaking: Delayed unstaking can range from one day to a week, depending on network congestion, but you pay a much lower fee. You also don’t have to account for slippage, as the network won’t prioritize your transaction.Choose whichever option works best for you, and click “Unstake SOL.” The funds will appear in your wallet.Did you know? You can stake Solana with as little as 0.01 SOL, making it one of the most accessible PoS blockchain networks.Is Solana wallet staking safe?Staking Solana is relatively safe, but even if you know how Solana staking works, there are risks to be aware of:Market volatility: Solana is subject to market volatility as much as any other cryptocurrency. The value of your staked SOL can fluctuate based on market conditions.Validator behavior: Validators can act out of favor with the network and may experience “slashing.” Slashing penalizes the validator’s rewards, which affects your rewards as well. Your initial investment remains safe, however.Cyberthreats: Blockchain networks are exposed to bad actors 24/7, meaning they can be vulnerable to hacks at any time, putting your funds at risk.Past downtime: Solana has had various outages over the years, often due to congestion. While this doesn’t necessarily mean your funds are at risk, bad actors could target the network during its weak moments.So, while staking on Solana offers potential rewards, it’s important to understand that staking always carries risk. As with any investment, there’s a possibility of loss, so it’s crucial to evaluate your risk tolerance and take necessary precautions.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Investors sue Meteora and VC firm, alleging fraud
A group of investors has filed a class-action lawsuit against decentralized cryptocurrency exchange Meteora, alleging the firm was involved in manipulating the launch and market price of the M3M3 token.In an amended complaint filed on April 21 in the US District Court for the Southern District of New York, the plaintiffs allege that venture capital firm Kelsier Labs, Meteora, and four current or former executives “intentionally misrepresented” information in the M3M3 launch in December 2024. The investors claimed that they suffered at least $69 million in losses between December 2024 and February 2025 after the parties presented “trusted leaders in the Solana ecosystem” as being behind the token launch, rather than a “blatant fraud” in which sales were manipulated to artificially inflate the price.“This artificially-inflated valuation communicated highly misleading information to non-insider investors, who reasonably relied on Defendants’ representations that the $M3M3 launch was fully accessible to the public and conducted in a transparent manner fair to non-insider investors, and thus reasonably relied on $M3M3 market price as a meaningful measure of its value,” the complaint reads. “The post-launch price spike also served to corroborate Defendants’ aggressively-marketed, but misleading, assertions that $M3M3 had intrinsic value and a comparatively low risk profile.”Class-action lawsuit against Meteora, Kelsier Labs, and current and former executives. Source: PACERThe lawsuit is one of many involving different crypto firms that have alleged fraud through violations of US securities laws. Though the US Securities and Exchange Commission (SEC), under acting chair Mark Uyeda since US President Donald Trump took office, has scaled back or dismissed many enforcement actions involving digital assets, the agency said in February it still intended to pursue cases against fraudulent token projects.The investors added:“Together, Defendants designed the $M3M3 Token and planned its launch on Meteora in a manner intended to illicitly enrich themselves at the expense of the unsuspecting investing public.”Related: Meteora says co-founder’s X account hacked after ‘parasitic’ memecoin postMemecoins in the Solana ecosystemMeteora has been tied to the launch of several high-profile yet controversial tokens, including those for Trump (TRUMP), his wife Melania (MELANIA), Libra (LIBRA), and online influencer Haliey Welch (HAWK). According to the lawsuit, the firm “purported to offer a comprehensive solution to the problems in the memecoin investment market” with the launch of M3M3. The defendants in the case allegedly attempted to distinguish the token from other notable memecoins by highlighting the “legitimacy and trustworthiness” through the involvement of Meteora co-founder Ben Chow and the platform.Kelsier Ventures, KIP Protocol, and Meteora face a similar class-action lawsuit filed in New York in March over LIBRA allegedly being launched in a “deceptive, manipulative and fundamentally unfair” manner. Argentine President Javier Milei briefly promoted the token over social media after his sister reportedly received payments from the project.Magazine: Memecoin degeneracy is funding groundbreaking anti-aging research
Bitcoin whales, pundits continued to stack throughout April, data shows
The number of addresses holding more than a thousand Bitcoin has surged in April as whales continue to accumulate. More than 60 new wallets holding over 1,000 Bitcoin (BTC) have appeared since early March, a signal of increasing whale activity. The number of these whale wallets has increased from 2,037 in late February to hit a four-month high of 2,107 on April 15, according to Glassnode. This has returned the metric to levels seen in two spikes in whale addresses in November and December, when crypto markets were surging following the election of US President Donald Trump. The all-time high for Bitcoin whale addresses was in February 2021, when it came just short of 2,500.Number of addresses with a Bitcoin balance of over 1,000 BTC. Source: Glassnode The number of addresses holding over 100 BTC has also climbed marginally this year, reaching 18,026 on April 20, according to Glassnode. However, smaller holders with less than 10 coins have been in decline over the past few months. Whales continue stackingOn April 18, Cointelegraph reported that Bitcoin whales were absorbing the asset at record rates of over 300% of the yearly issuance while exchange balances were falling. Bitcoin whales holding over 10,000 coins remain in strong accumulation territory as the dip buying continues, according to Glassnode. “Whales are accumulating massive amounts of Bitcoin, they know what comes next,” said Bitcoin trader ‘Mister Crypto’ on April 20.Bitcoin whale position change. Source: Mister Crypto Related: Bitcoin price falls toward range lows, but data shows ‘whales going wild right now’Meanwhile, Bitcoin prices appear to be breaking out of a sideways channel that began in early March. The asset climbed more than $3,000 on the day to reclaim $87,400 on April 21 for the first time since March 28. Bitcoin’s breakout from a multimonth falling wedge chart pattern signals a potential bullish reversal that could drive its price back toward six figures by May, according to analysts. Magazine: Altcoin season to hit in Q2? Mantra’s plan to win trust: Hodler’s Digest
Bitcoin gets $90K short-term target amid warning support 'isn't safe'
Bitcoin (BTC) tapped 3-day lows into the April 20 weekly close as analysis warned of a fresh liquidity grab next.BTC/USD 1-hour chart. Source: Cointelegraph/TradingViewAnalysis sees Bitcoin crossing $83,000Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dropping 1.5% to $83,974 on the day before rebounding.Still broadly less volatile over the weekend, Bitcoin sought to stem the week’s downside as doubts appeared over the strength of nearby support.Investigating the current liquidity setup across exchange order books, popular analyst Mark Cullen was particularly skeptical of $83,000.“Bitcoin 90k liquidity still calling. BUT, i think the 83k level isn’t safe, those lows from last Sunday and Wednesday are likely to get run first,” he summarized on X. “THEN we wait for the reaction and bullish structure to build back inside the range low.”Bitcoin order book liquidity chart. Source: Mark Cullen/XCullen and others nonetheless saw a short-term BTC price range between $83,000 and $86,000 staying in place over the Easter holiday weekend.📈#Bitcoin Range Bound‼️The long easter weekend is likely yo see $BTC play out a range between83k and 86k. With it al ready sweeping the highs of the range late last week, IMO we are going to see liquidity sought from the lows before continuation higher.#Crypto #BTC https://t.co/iNllx4LexJ pic.twitter.com/6zx5gXZx79— AlphaBTC (@mark_cullen) April 20, 2025“Pretty slow market during this long weekend as expected. I think next week will get interesting as the charts are quite compressed. Any decent good/bad headline could spark a pretty large move I think. Even if its just from positions getting squeezed,” popular trader Daan Crypto Trades continued. “Generally those moves are not one you want to be fading when it occurs. $83K-$86K is the range to watch in the short term.”BTC/USDT 15-minute chart with CME futures data. Source: Daan Crypto Trades/XAn accompanying chart showed BTC price action relative to the latest closing point of CME Group’s Bitcoin futures, potentially inviting the creation of a “gap” that could provide a short-term price magnet.Fellow trader Roman meanwhile eyed what could become a return to multimonth lows as part of a bullish inverse head and shoulders reversal pattern.“If volume is decreasing on the way to 76k, I’ll take longs,” he told X followers.Confidence increases over BTC price breakoutUpdating readers on the daily chart, popular trader and analyst Rekt Capital had good news.Related: Bitcoin can reach $138K in 3 months as macro odds see BTC price upsideBitcoin, he confirmed, had definitively broken out of a multimonth downtrend without violating it during retests as support.“Bitcoin hasn’t just broken the Downtrend and successfully retested it as support for the first time since Downtrend formation,” he wrote.“But Bitcoin has also been able to sustainably maintain above the Downtrend for a period of several consecutive days now.”BTC/USD 1-day chart. Source: Source: Rekt Capital/XAs Cointelegraph reported, the fate of the downtrend had been on the radar for weeks, with not everyone agreeing that price had left it behind for good.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Crypto industry is not experiencing regulatory capture — Attorney
Brandon Ferrick, general counsel at Douro Labs, said that the Securities and Exchange Commission’s (SEC) openness to public input on crypto policy and their roundtable discussions are positive signs that the crypto industry is not currently experiencing regulatory capture.In an interview with Cointelegraph, Ferrick identified signs of regulatory capture including, a public-to-private sector revolving door of employees, the same roster of attendees at regulatory events, and special treatment given to certain crypto projects. However, Ferrick added:”The reason why I am not worried today is that a lot of what you’re seeing from the regulatory side, like the SEC, for example, is totally open, public, and there are available opportunities to have conversations with the regulators about changing or thinking about the regulatory structures.””[The SEC] has a public portal where you can just submit written commentary on your thoughts for the crypto regulatory environment, and you can schedule meetings with them,” the attorney continued.Crypto Industry executives and panelists discuss cohesive crypto regulation at the SEC’s first crypto roundtable in March 2025. Source: SEC As the crypto industry becomes more integrated with the traditional financial system and engages state regulators more, some analysts and executives are worried that the industry is experiencing regulatory capture that will skew incentives and politicize the burgeoning crypto sector.Related: SEC staff gives guidance on how securities laws could apply to cryptoSEC hosts several roundtable discussions on crypto policyThe SEC has hosted several crypto roundtable discussions and panels, with more slated in the coming months — a sharp contrast from the agency’s regulation-by-enforcement approach under former SEC chairman Gary Gensler.On March 21, the regulatory agency hosted its first crypto roundtable, which featured crypto industry executives, SEC officials, and even opponents of the crypto industry.Former SEC official John Reed Stark was highly critical of the industry and opposed comprehensive regulatory reform, arguing that digital assets must comply with existing securities laws.Former SEC official John Reed Stark addresses the SEC’s March 2025 crypto roundtable. Source: SECThe SEC’s April 11 roundtable focused on trading rules and included a different set of panelists, including representatives from Uniswap and Coinbase.The next SEC panel will occur on April 25 and focus on establishing guidelines for crypto custodians and other firms holding crypto on behalf of customers.Magazine: SEC’s U-turn on crypto leaves key questions unanswered
$400M Web3 investment fund ABCDE halts new investments, fundraising
Web3 and blockchain-focused investment fund ABCDE is halting new investments, but the $400 million fund remains committed to supporting its existing projects.In an April 19 X post, ABCDE co-founder and Huobi exchange founder Du Jun said the $400 million fund will no longer invest in new projects or raise capital for the second phase of the fund.However, Jun said the fund will continue to “post-investment support and exit arrangements of existing projects” to ensure the firm’s commitment to entrepreneurs and liquidity providers (LPs).“My personal work focus will also gradually shift from financial investment in the primary market to strategic investment-led and deep incubation-based, focusing more on industrial synergy and long-term value creation,” Jun added.Source: Du JunThe announcement comes nearly three months after ABCDE’s last investment into an Ethereum layer-2 (L2) solution, Soon (Solana Optimistic Network), which raised $22 million through a non-fungible token sale to mark the launch of its mainnet, Cointelegraph reported on Jan. 22.SOON block times, compared to other blockchains. Source: SOONThe Soon mainnet claims to outperform Solana in speed and efficiency, delivering average block times of 50 milliseconds compared to Solana’s 400 milliseconds.ABCDE is a $400 million fund, with 28% of its investments in Bitcoin (BTC) scaling technology, 16% in Ethereum liquid staking derivatives finance (LSDFi) infrastructure, and an additional 12% invested in L2s, restaking and smart contract platforms, Cryptorank data shows.ABCDE investments focus area, average round size. Source: CryptorankABCDE has invested over $40 million worth of capital into over 30 projects over the past three years, with an internal rate of return (IRR) “still at the global leading level,” despite the current market environment, Jun said.Related: Trump family memecoins may trigger increased SEC scrutiny on cryptoNew incubator brand Vernal announcedABCDE’s suspension of fundraising efforts was announced a month after the fund’s co-founder launched a new incubator brand, Vernal.Source: Du JunThe new incubator is set to announce its shareholders and incubation rules for the first batch of projects in May, along with its first investments.Jun said that the decision to halt ABCDE’s fundraising efforts was not made due to financial constraints or lack of funds but because of a fundamental concern for the current development trajectory of the crypto industry.Related: Crypto, stocks enter ‘new phase of trade war’ as US-China tensions rise.“Frankly speaking, I am increasingly unable to agree with the current ecological atmosphere of the primary market,” Jun said in an April 19 X post, adding:“Many projects are extremely short-sighted and only think about how to get listed on the exchange as soon as possible, and what is left behind is often a mess.”“What is more worrying is that some primary funds not only have no reflection on this, but also hype up their ‘listed projects’ and short-term market value performance, but never mention the value creation of the projects themselves,” he added.Cardano founder Charles Hoskinson has urged fourth-generation cryptocurrency projects to embrace more collaborative tokenomics to compete with major centralized tech companies entering the crypto industry.Charles Hoskinson. Source: Cointelegraph“The problem right now, with the way we’ve done things in the cryptocurrency space, is the tokenomics and the market structure are intrinsically adversarial. It’s sum 0,” Hoskinson said at Paris Blockchain Week on April 9. “Instead of picking a fight, what you have to do is you have to find tokenomics and market structure that allows you to be in a cooperative equilibrium.”“You can’t build a global ecosystem this way, and you can’t win this way,” he added. “Because here’s the thing. The incumbents are much larger.”Magazine: Your AI ‘digital twin’ can take meetings and comfort your loved ones
Firing Jerome Powell will crash financial markets — Sen. Elizabeth Warren
US Senator Elizabeth Warren warned that if President Donald Trump eventually moves to fire Federal Reserve Chair Jerome Powell, it could undermine investor confidence in the integrity of US capital markets and trigger a financial crash.During an appearance on CNBC, the Massachusetts Senator said the President does not have the legal authority to remove Powell from his position. Moreover, removing Powell would weaken the financial infrastructure of the US, Warren added:”If Chairman Powell can be fired by the President of the United States, it will crash the markets. The infrastructure that keeps this stock market strong and, therefore, a big part of our economy strong, and a big part of the world economy strong, is the idea that the big pieces move independently of politics.””If interest rates in the United States are subject to a president who just wants to wave his magic wand, this doesn’t distinguish us from any other two-bit dictatorship,” Warren continued.Trump discusses US economic policies with reporters. Source: The White HousePresident Trump has repeatedly called for Powell’s termination, citing the chairman’s hesitancy to lower interest rates. Lower interest rates are usually considered a positive catalyst for risk-on asset prices, including cryptocurrencies, and could reverse the market downturn brought on by the trade war and current macroeconomic pressures.Related: Fed’s Powell reasserts support for stablecoin legislationTrump’s feud with the Federal Reserve chairmanTrump criticized Powell for not cutting interest rates and called for his termination again in an April 17 Truth Social post, which inflamed speculation that he would follow through on threats and find a way to remove the chairman.Senator Rick Scott echoed Trump’s calls to remove Powell. “It’s time to clean house of everyone working at the Federal Reserve who isn’t on board with helping the American people and fighting for their best interests,” Scott wrote in an opinion piece published on Fox News. Source: Donald TrumpThe Trump administration has repeatedly stated that lowering interest rates is a top priority. Market analyst and investor Anthony Pompliano recently speculated that Trump deliberately crashed financial markets to force lower interest rates.At the time, Pompliano cited a reduction in the yield of the 10-year US Treasury Bond to just 4%. The 10-year bond yield has climbed back up to 4.3% since then.Magazine: Meebits and CryptoPunks are like Hot Wheels for adults: New MeebCo owner Sergito
Aptos community proposal seeks to slash staking rewards by nearly 50%
An Aptos community member submitted a proposal on April 18 to slash staking rewards for the network’s native token, Aptos (APT), by nearly 50%The proposal, submitted by a community member called MoonSheisty, aims at reducing reward yields from 7% to 3.79% in a three-month period, aligning Aptos staking rewards with other layer-1 blockchains and encouraging capital efficiency.The proposal has sparked curiosity on X, but early comments on GitHub show some initial resistance.A community member going by ElagabalxNode noted that reducing the staking reward without “compensatory mechanisms like a robust delegation program” could push smaller validators out of the network, thus weakening the Aptos blockchain’s decentralization and long-term resistance.Related: Aptos to accelerate innovation with new tech, investment in IndiaThe proposal addresses the validators’ role in the network, stating that Aptos should consider a community validator program to give grants and stake to small validators contributing to the ecosystem.”Aptos was founded in 2021 by a group of former Meta engineers. According to DefiLlama, the Aptos blockchain has a total value locked of $974 million as of April 18, with nearly a $320 million coming from lending protocol Aries Markets.Aptos TVL and other metrics. Source: DefiLlamaWhile high staking rewards can incentivize users to lock up tokens on Aptos, MoonSheisty argues that they may also discourage participation in higher-risk, higher-reward opportunities within the ecosystem, such as restaking, DePIN infrastructure, MEV, and decentralized finance.Staking ‘real reward rates’ vary considerablyStaking rewards can vary significantly across blockchains. According to CoinLedger, real returns on the BNB Smart Chain are among the highest at 7.43%, while Cardano offers one of the lowest at just 0.55%.Staking offers multiple benefits: It incentivizes users to lock their tokens on-chain, supports validators and helps secure the network. Rewards work similarly to interest earned on a savings account — but instead of cash, stakers earn crypto, which can fluctuate in fiat value.Related: Coinbase’s Ethereum staking dominance risks overcentralization: ExecsFrom time to time, proposals emerge aiming to modify staking procedures. In June 2024, Polkadot introduced a proposal to reduce the time needed to unstake to just two days. In September, the Starknet community voted to pass a new staking mechanism, while Ethereum co-founder Vitalik Buterin proposed solutions to staking issues a few weeks later.While staking gives the community a true “stake” in the network, there are risks associated with it, including the consolidation of smaller pools into larger ones. This trend can undermine decentralization and weaken the blockchain’s overall resilience. Magazine: Ethereum restaking — Blockchain innovation or dangerous house of cards?
Quantum computers likely to reveal if Satoshi is alive — Adam Back
Early cypherpunk Adam Back, cited by Satoshi Nakamoto in the Bitcoin white paper, suggested that quantum computing pressure may reveal whether the blockchain’s pseudonymous creator is alive.During an interview after a Q&A session at the “Satoshi Spritz” event in Turin on April 18, Back suggested that quantum computing may force Nakamoto to move their Bitcoin (BTC). That’s because, according to Back, Bitcoin holders will be forced to move their assets to newer, quantum-resistant signature-based addresses.Back said that current quantum computers do not pose a credible threat to Bitcoin’s cryptography but will likely threaten it in the future. Back estimated that quantum computers may evolve to that extent in “maybe 20 years.”Related: Bitcoin’s quantum-resistant hard fork is inevitable — It’s the only chance to fix node incentivesWhen the threat becomes real, Back said the Bitcoin community will have to choose between deprecating old, vulnerable addresses or letting those funds be stolen:“If the quantum computers are here, and people at universities and research labs have access, the network has a choice to either let people steal them or to freeze them — to deprecate the signature.“Back expects the community to go with the former option, forcing Bitcoin’s pseudonymous creator to move their funds if they wish to avoid losing them.Privacy upgrades could complicate proofStill, Back said that whether such a situation will reveal if Satoshi Nakamoto is alive also depends on Bitcoin’s future privacy features.“It depends a bit on the technology, there are some research ideas that could add privacy to Bitcoin,” Back said. “So, possibly there might be a way to fix quantum issues while keeping privacy.“Related: Lawyer sues US Homeland Dept to probe supposed Satoshi Nakamoto meetingStill, not everyone is convinced that — privacy enhancements or not — such a scenario would reveal whether Nakamoto was alive. An anonymous early Bitcoin miner and member of the Bitcoin community told Cointelegraph that he does not expect Nakamoto’s coins to be moved:“Even if he is alive and holds the private keys, I do not think he’d move them. Based on how he acted so far I would rather expect him to let the community to decide.”He added that, since this is a controversial choice, it makes sense to let the community decide. He said that he’d be surprised if Nakamoto came out of the woodwork to move the assets.A quantum-resistant BitcoinBack explained that most quantum-resistant signature implementations are either unproven in terms of security or very expensive from a data perspective. He cited Lamport signatures as an old and proven design, but pointed out that they weigh tens of kilobytes.Consequently, he suggested that Bitcoin should be prepared to switch to quantum-resistant signatures but only do so when necessary. He suggested a Bitcoin taproot-based implementation allowing addresses to switch to quantum-resistant signatures when needed.Magazine: Bitcoin vs. the quantum computer threat: Timeline and solutions (2025–2035)
Ripple acquisition Hidden Road secures FINRA registration
Prime brokerage Hidden Road, which was recently acquired by Ripple for $1.25 billion, has secured a broker-dealer license from the Financial Industry Regulatory Authority (FINRA) — a move that enhances its capacity in the fixed-income markets. As a FINRA broker-dealer, Hidden Road can further develop its fixed-income prime brokerage services and extend its capabilities in traditional markets, the company announced on April 17. This includes offering institutional clients regulatory-compliant clearing and financing services across fixed-income securities. Membership in FINRA is considered a significant commitment to compliance and investor protection. It also boosts registrants’ credibility in the eyes of investment bankers, according to Telos Capital Advisors, a Dallas-based investment bank. Hidden Road operates a prime brokerage and credit network, clearing more than $10 billion in daily transactions on behalf of more than 300 institutional clients. When it was founded in 2018, Hidden Road focused mainly on foreign exchange markets before expanding into digital assets.These strengths positioned Hidden Road as an attractive acquisition for blockchain payments network Ripple, which ultimately purchased the company on April 8.Ripple’s chief technology officer, David Schwartz, described the acquisition as a “defining moment for the XRP Ledger” by expanding the settlement layer’s use cases across traditional financial markets. Under Ripple, Hidden Road will “exponentially expand its capacity to service its pipeline and become the largest non-bank prime broker globally,” said CEO Brad Garlinghouse. Garlinghouse comments on the Hidden Road acquisition on April 8. Source: Brad GarlinghouseRelated: US to get its first XRP-based ETF, launching on NYSE ArcaPositive regulatory backdrop supports Ripple expansionRipple’s acquisition of Hidden Road comes on the heels of a favorable regulatory backdrop in the United States following the election of President Donald Trump. In January, Ripple secured money transmitter licenses in both Texas and New York, allowing the company to facilitate capital transfers within those states. Two months later, the Securities and Exchange Commission (SEC) dropped its lawsuit against Ripple, ending one of crypto’s longest legal battles and positioning the company to once again focus on expansion. At the time, crypto lawyer John Deaton said the decision is the “final exclamation point that [XRP tokens] are considered digital commodities, not securities.”The SEC is about to get a pro-crypto Chair after Paul Atkins’ nomination was approved by the US Senate on April 9. Once he’s sworn in, Atkins will take the reins from Mark Yueda, who has served as Acting Chair since Jan. 20.Related: Court grants 60-day pause of SEC, Ripple appeals case