Non-Custodial Staking

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Pronunciation

[non-kuh-stoh-dee-uhl stay-king]

Analogy

Non-Custodial Staking is like holding your own gold in a personal safe rather than leaving it in a bank’s vault.

Definition

A model where users retain control of their private keys and delegate or run validators directly without transferring custody to a third party.

Key Points Intro

Non-Custodial Staking ensures sovereignty via:

Key Points

Self-custody: Users keep private keys.

Direct delegation: Stake assigned via smart contracts.

Lower counterparty risk: No reliance on third parties.

Operational responsibility: Users manage node uptime and security.

Example

A user runs a Prysm client on their server, 32 ETH directly from their own .

Technical Deep Dive

Users interact with the contract through a interface. For delegation, the contract records the delegate mapping. For solo validation, users run client software that signs attestations with local keys. Monitoring scripts trigger alerts on downtime to avoid .

Security Warning

User is responsible for —loss of keys equals loss of staked assets and rewards.

Caveat

Higher technical barrier to entry; misconfiguration can lead to downtime penalties.

Related Terms

Blockchain & Cryptocurrency Glossary

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