Rocket Pool has been described by various media outlets as being a “next generation Proof of Stake pool” that has been designed to be fully compatible with Casper, the new Ethereum consensus protocol that will go live within the next month or so.
Through the use of this new protocol, some of the issues pertaining to “high barrier entry” can be alleviated. In addition to this, Casper will also allow third party users to earn interest on ethereum investments over a fixed period of time.
What Does Rocket Pool Do Exactly?
Basically put, Rocket Pool has been designed to allow users and businesses “to earn interest on their ether holdings using Casper”. The deposit scheme resembles the structure of a “fixed term bank deposit”, where users can invest their money to earn a steady revenue stream.
Using its smart contracts, the platform automatically keeps tabs on our investments, and manages them without us having to constantly look into them. It should also be mentioned that deposit terms can range from a few months, to over a year.
What is Casper? How Will It Affect the Crypto Market?
As mentioned previously, Casper is the ”consensus protocol” that will be incorporated into the ethereum blockchain come 2018. In its current mode of operation, ethereum makes use of the PoW (Proof of Work) protocol. However, Capser will use an all new system called the PoS (Proof of Stake), which will allow users to earn a steady interest stream based upon the amount on ETH one has invested.
Why Use Rocket Pool?
For starters, Rocket Pool will eliminate many of the “high barriers” that exist within the Casper framework. Additionally, for users to make any tangible money from Ethereum deposits, Casper requires an investment of at least 1000 ETH. However when using Rocket Pool, users have the ability to earn a steady stream of income on deposits as low as 0.1 ETH.
Lastly, Casper takes for granted that users already know alot about crypto technologies, and how smart contract are executed. This however, is not the reality of things, as many people still don't much about the ethereum blockchain. Rocket Pool aims to make our life easier by staking on behalf of us, and thus letting us reap small profits in a steady and stable manner.
Rocket Pool Working Mechanism
Through the use of these contracts, Rocket Pool is able to accept ethereum deposits as well as track the issuance of various other tokens. The company also claims that it is able to detect any “node malfunction”, thereby preventing it from taking any new users till the issue is resolved.
These nodes are different from the regular “Ethereum full node”, in the sense that they feature certain background processing capabilities that allow them to stay in constant communication with the central Rocket Pool platform.
These are another form of ‘smart contracts’, but the difference lies in the fact that they consist of a certain group of users that plan to pool in their ether together, and stake them for a limited amount of time (to reap faster returns).
Other Key Features to Consider
(i) Flexible Staking:
Since Casper requires funds to be contractually locked in for a period of four months, it can be hard for some people to make such investments. However, when using Rocket Pool, customers will have the option of withdrawing tokens that are backing their investments. What this basically means is that users can gain access to their funds more quickly, even if they have been staked previously.
(ii) Widow Address Withdrawls:
When using Rocket Pool, users will have the ability to “specify a widow address after they makes a successful deposit for staking”. This address can then also be used to collect our deposits, as well as any interest that we might have earned. Lastly, this feature might also be useful for people who have a tendency to forget “wallet addresses”, as it allows us to still gain access to our funds even after the initial 3 month period.
(iii) Third Party Integration Capacity:
Another amazing feature which sets Rocket Pool apart from the rest, is its ability to integrate 3rd party API’s. As a result of this, business owners are able set up their very own “staking services” in an easy and straightforward manner.
Rocket Pool Token Sale Details
According to the company’s official whitepaper, Rocket Pool will be offering its customers upto 18 million tokens. The native currency will be referred to as RPL, and can be bought through the use of Ethereum.
To start things off, there will be a presale which will feature 45% of the tokens, and will allow customers to make obtain various early bird offers. After the commencement of this period, 40% of the tokens will be sold during the public crowdsale.
- The public crowd sale will last four weeks from 25/11/2017 to 23/12/2017.
Also, there is a hard cap that has been set in place. This cap will be initiated when a total of $4.25 million USD (based on the ETH/USD exchange rate) has been raised. In terms of the distribution of the tokens, the following model has been presented by the company:
- 85% of tokens will be owned by crowdfunding participants in the form of RPLs
- The remaining 15% of RPLs will be reserved for the original development team, any advisors, further code/node audits, bug bounties, and the earliest adopters/contributors.