What is Staking and Staking Economy?
Staking was born out of the POS (Proof of Stake) consensus mechanism. It is a unique action in the PoS consensus. The cryptocurrency holder actively participates in the network system through staking, protects the network security and also implements the rights related to the cryptocurrency.
Unlike PoW (Proof of Work) where miners rely on computation-based mining, the crypto tokens in Staking mode act like virtual ASIC miners. POS miners rely on token staking to maintain network security, package transaction information, participate in community governance, and gain equity reward when the system issues additional tokens.
Staking Economy is a service and product derived from PoS. Similar to the daily purchase of various financial products, some large organizations will host the project nodes, and the customers will give their tokens to the Staking node for custody. As a result, the customers will collect rewards from staking their tokens. Therefore, Staking as a Service (StaaS) has gradually emerged as a new business.
Who is staking?
Today there are 3 main types of players in the entire staking industry:
First: Cryptocurrency exchanges;
Second: StaaS service providers;
Third: Investment funds, which mainly refers to some investment funds within the blockchain industry which provide services for the projects they invest in.
Of course, some universities and research institutions also participate in staking.
PoS requires more of the customers’ “trust”, instead of just letting the machine determine the “right to speak.” Therefore, in addition to the three main categories, Staking customers currently also include some universities and research institutions. Some research-based universities do not participate in operation and maintenance on their own, so they hand their crypto assets over to StaaS for escrow.
What can I get in staking?
The role of staking is similar to the daily purchase of various financial products. Some large organizations will host the project nodes, and the customers will give their tokens to the Staking node for custody and collect rewards from staking their tokens.
For example, EOS issues an additional 1% of tokens per year. If you don’t participate in Staking, it is equivalent to a 1% depreciation every year. This does not include the fluctuations in the token price itself.
If the investors are optimistic and plan to HODL cryptocurrencies for a long time, then they need to use Staking for “interest” to prevent the depreciation of their cryptocurrencies caused by external inflation.
InfStones is built by senior cloud service and blockchain teams in Silicon Valley, USA. It has super nodes elected in well-known DPoS public chains including EOS, TRON, VeChain, Ontology, Elastos, IoTeX, Loom, GXChain, Bytom, etc., and mining nodes deployed in well-known PoS public chains including IRISnet, Cosmos, Tezos, Algorand, IOST, etc.
According to Staking Reward’s ranking of Digital Asset Staking Services, InfStones ranks the 3rd in the world. It is the super PoS mining pool that covers the vast majority of PoS mainstream public chains.
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