Secure staking with Ledger Enterprise: mitigating risks and overcoming challenges
Staking can create additional revenue streams and generate passive income with relatively little effort. But staking at an enterprise level also comes with risks and challenges.
Things to know:
– Ledger Enterprise is a global technology provider empowering organizations to participate in the digital asset ecosystem securely and at scale. The company now offers its clients an easy, secure, and cost-effective way to stake Polkadot and Ethereum 2.0.
– Besides opportunities such as passive income and maximizing ROI, staking at an enterprise level also comes with challenges.
– Should you choose a custodial or non-custodial staking solution? How to maintain the infrastructure necessary to stake? And how to avoid slashing penalties?
– Together with our partners—Figment and Kiln—Ledger Enterprise is here to guide you, answer questions, and provide you with the best infrastructure to stake Polkadot and Ethereum 2.0 without extensive engineering resources and with a flexible, turnkey system.
As discussed in our previous blog post, staking can create additional revenue streams and generate passive income with relatively little effort. After all, why let assets in custody stagnate when you could put them to work?
Besides opportunities, staking at an enterprise level also comes with risks and challenges. Should you choose custodial or non-custodial solutions? How to avoid slashing penalties?
Let’s take a closer look at these challenges, and how Ledger addresses them.
Challenge #1: Staking with custodial or non-custodial solution
Both options have their pros and cons. With a custodial solution, you rely on infrastructure providers and transfer the assets to a third party who will then stake on your behalf. On the other hand, a non-custodial solution would require more extensive engineering resources and in-house specialists.
And some solutions, like Ledger Enterprise, provide you with the best of both worlds— robust infrastructure necessary to stake assets and ownership over the private keys and therefore, assets.
Challenge #2: Maintenance
Blockchain networks are complex and they are constantly undergoing infrastructure changes, patches, updates, and upgrades. Additionally, you need to deploy and maintain a separate node for each blockchain, which makes staking even more challenging.
Challenge #3: Slashing
Slashing ensures that a node is participating in staking and complying with its requirements. Events such as not maintaining your node, going offline for a certain period of time, technical issues, and double signing lead to penalties.
How Ledger Enterprise addresses these challenges
Ledger Enterprise sets the staking infrastructure in a way that clients remain in full control over the assets and rewards but at the same time avoid complex and resource-heavy integrations. In other words, you can delegate directly from our secure environment in a few clicks and earn rewards, while keeping ownership and control of your assets.
Together with our partners—Figment and Kiln—we’re providing the infrastructure to enable custodians to put assets to work and stake Polkadot and Ethereum 2.0 without extensive engineering resources and with a flexible, multi-layered security system.
Protection from hacks and errors with ClearSigning
When you broadcast a transaction on the blockchain, you are exposed to different attack vectors. Ledger Enterprise protects your business from address swap attacks, phishing attempts, and accidental delegation to the wrong validator address. To enable this, we developed a ClearSigning technology that guarantees that What You See Is What You Sign.
Hardware for maximum security
Our staking capabilities are protected by a unique combination of hardware, software, and firmware. The assets and corresponding private keys are always secured by a Hardware Security Module (HSM). Staking rewards can only be withdrawn to your Ledger Enterprise Address and only you are able to access the funds.
Governance and control tailored for professional use
With Ledger Enterprise, you can manage all staking activities with customized workflows and rules that can be implemented in just a few clicks. This allows you to have clear segregation of duties and operations, giving your team more flexibility and your company’s leadership more visibility.
Automation to maximize yield and productivity
With Ledger Enterprise, you can replace 100% of your manual staking operations. Using our API, you can trigger actions based on specific events to automatically stake the treasury you are not using. You can also automate liquidity management to always have a specific amount of assets in the treasury and put the rest at work.