daemonOS underpins the Blockdaemon product suite. With daemonOS you get access to a seamless blockchain-platform, from high-quality nodes to easily-accessible staking infrastructure, MPC tech, and beyond. CCData and Blockdaemon add ETH, the Largest PoS Asset to Expanding, Industry-First Staking Yield Index Family. Calculated daily, the rewards featured in the six CCData Blockdaemon Staking Yield Indices integrate various factors including block rewards, token emissions, fees, protocol penalties, withdrawals, and more. CCData (formerly CryptoCompare), the leading digital asset data provider and FCA-authorised benchmark administrator, in partnership with Blockdaemon, the global leader in institutional-grade blockchain infrastructure for node management and staking, announced the expansion of their recently launched Staking Yield Index Family. The family of indices, all industry firsts, now feature Ethereum, the largest Proof-of-Stake asset by market capitalisation.

Calculated daily, the rewards featured in the six CCData Blockdaemon Staking Yield Indices integrate various factors including block rewards, token emissions, fees, protocol penalties, withdrawals, and more.

Each index utilises staking data from the entire blockchain universe. Covering 100% of network validators, the indices aggregate information from every validation period on a daily basis. This process enables the Index to deliver an accurate average daily annualized yield for users.

The newly added index tracks Ethereum, which accounts for over 50% of TVL out of Proof of Stake blockchains. Data from the Ethereum Staking Yield Index reports that ETH has a year-to-date average yield of 4.7%.

‍Traditional index products previously overlooked millions of dollars staked across the digital asset ecosystem. The CCData Blockdaemon Staking Yield Index Family introduces a groundbreaking solution to the limitations of traditional index products, enabling investors to securely access staking rewards generated by the underlying blockchains. This approach not only strengthens and secures the underlying blockchain network but also creates new opportunities in the digital asset investment landscape.

"The Staking Yield Index Family has established an innovative benchmark for digital asset investment options, addressing the constraints experienced by conventional indices that fail to account for staking rewards generated by the underlying cryptocurrency," stated Charles Hayter, CEO and Co-Founder of CCData. "The addition of Ethereum into the index family is a crucial step as we look to enhance accessibility for institutional investors operating in the digital asset landscape."

The indices empower investors with daily reports that can help refine investment strategies and capture digital asset annualised staking rewards through a regulated and secure index product. This innovative development facilitates the creation of total return and reward swap products, benchmark portfolios, research initiatives, and more.

“Blockdaemon has been instrumental in building advanced institutional investment products using proven blockchain infrastructure since 2017. We firmly believe that blockchain powered financial infrastructure is the future of the industry, and are proud to be working alongside CCData and others to help deliver products that fundamentally transform how the world conducts finance,” said Konstantin Richter, CEO and Founder of Blockdaemon.

The CCData Blockdaemon Staking Yield Index Family utilises CCData’s proprietary yield calculation methodology specifically tailored for select proof-of-stake digital assets. Each highlighted cryptocurrency boasts its own distinct yield calculation methodology and implementation.

Cold Storage Is Great, But With Limitations

The absence of network connectivity for cold wallets necessitates that approvers be physically present with the wallet. For institutions, multiple senior-level approvers are required, necessitating their physical presence on-site to approve each transaction from the cold wallet.  Furthermore, best practices dictate a series of stringent, formal, and frequently manual procedures that must be executed prior to signing and transferring a transaction to a blockchain for processing.

For numerous institutions and custodians, this process frequently takes several hours, a full day, or even longer to complete, leading to slow, operationally demanding, and costly cold wallet transfers. 

With rapidly changing market conditions, these delays can have huge financial implications. Furthermore, frequent transfers out of cold storage can be disruptive to operations and result in very high operational transaction costs.

Understanding the Traditional Cold Storage Transfer Process‍

For custodians and large institutions, cold wallets reside in secure environments, featuring stringent physical access controls. Special processes are frequently implemented to guarantee that transactions receive approval only after meeting a predetermined set of policies. Each transaction awaiting approval must be manually entered into the system through a physical procedure. After meeting the predefined policies, each approver employs their private key or key share to digitally sign and authorize the transaction. The signed transaction must subsequently be physically extracted from the system, employing a manual or physically isolated procedure. Then the signed transaction can be uploaded to a network where it can be forwarded to the associated blockchain for processing. Given the limited availability of executives, it becomes evident that air-gapped approval operations can span hours or even days.

Q. What if Your Online Wallet Was Secure and Controlled?

Blockdaemon Wallet represents a groundbreaking institutional policy wallet, utilizing secure multi-party computation (MPC) technology. It is the first wallet to apply MPC to protect both the private key shares used to sign a transaction and the policies which must be satisfied before the key shares can be used to generate a signature. Blockdaemon Wallet also cryptographically enforces the policies, meaning the transaction cannot be signed until the policies associated with each transaction are fully satisfied. 

Blockdaemon Wallet allows institutions to create a variety of wallets and apply different policies to different wallets, asset types, destinations, values, and more. By identifying one or more wallets as online cold or cool wallets, the same approvers needed for in-person authorizations using an air-gapped cold wallet can now asynchronously approve transactions from any location. Using Blockdaemon Wallet's mobile approval app, approvers can examine transaction requests, input their personal identification number, and undergo biometric authentication to verify, authorize, and approve transactions. All without the requirement to be in any particular physical location.

Since the wallet is connected online, transactions can be securely and automatically submitted for approval, policy verification, signing, and exportation for blockchain processing. The result is the security of cold storage with the accessibility of a hot wallet.

Konstantin Richter, CEO & Founder

“Very few of the conventional cloud tools available in the market could cater to blockchain. This idea grew into what is now the Blockdaemon platform.”