All blockchains have one thing in common: transactions need to be validated. Bitcoin, for example, does this in a process called mining that is known to use a lot of electricity (Proof-of-Work). But there are also other forms of validation often referred to as consensus mechanisms. Proof-of-Stake (PoS) is one of those consensus mechanisms that can come in different variations and hybrid models. For reasons of simplicity, we will refer to all this as rethinking. Coin staking gives currency holders some decision-making power on the network. By betting coins, you get the ability to vote and generate an income. This is quite similar to how someone would receive interest for having money in a bank account or giving it to the bank to invest. Staking Calculator
Estimated income of the current APR
Earn NowWhat are some of the benefits
One of the main benefits of staking with coins is that it eliminates the need to continuously purchase expensive hardware and consume energy. The system offers guaranteed returns and a predictable source of income unlike the proof-of-work system where coins are rewarded through a random process with low probability. Another is that the value of your staked coins does not depreciate unlike ASICs and other mining hardware, but can only be affected by fluctuations in current market prices. This makes proof of stake coins greener and more energy efficient than mining-based coins.
In contrast to just keeping coins in your wallet or locking them into a smart contract (masternodes), some coins added randomness to the stakeout and voting process so that bad players have a hard time manipulating the results. The process is similar to a lottery in that the amount of cryptocurrency you own is equivalent to having a set number of lottery tickets. Staking systems can also allow delegation in which each individual delegates their voting rights and the income earned to a trusted party. Those delegates then get all the rewards for block validation and pay their loyal supporters some form of dividends in exchange for their vote.
Always do your own research
Choosing the right currency for stake is a numbers game and an intuition. If you choose to start staking, definitely start your research on minimum amounts, staking rewards, and particular staking protocols. Always remember to choose a project that resonates with you and one that you hope will be in the future. After all, by betting, you’re helping to make that project a reality. Trust Wallet allows you to make Stake of the following currencies
