The Rise of Staking: How It Works and Why It’s Here to Stay

https://coingape.com/coinbase-us-sec-statement-core-staking-services-not-securities/https://coingape.com/terra-classic-lunc-staked-900-bln-price-jumps/https://coingape.com/will-ethereum-price-rise-or-fall-after-shanghai-upgrade-new-data-reveals-answer/https://coingape.com/lunc-news-terra-classic-biggest-validators/The crypto space has grown from unknown, to niche to a modern financial mainstream talking point in all technological discussions. Capable of completely changing the way we perceive and utilize money, cryptocurrencies offer one option that fiat currencies don’t — staking. 

Staking enables the generation of passive income for cryptocurrency holders, ensures a blockchain remains secure, and offers advantages over traditional Proof-of-Work (PoW) mining-earning alternatives.

After accruing mass attention on a global scale, the process of staking has allowed crypto holders the ability to gain a return on investment (ROI) on their holdings by participating in network operations. 

Staking: The Inner Workings

To begin staking, an investor needs to hold a specific amount of tokens in their wallet to delegate towards blockchain network operations in exchange for long-term remuneration. In return for helping secure the blockchain and for locking up assets, staking participants are rewarded with further holdings — a process fundamental to Proof-of-Stake (PoS) consensus.

PoS varies significantly from the PoW consensus in that no energy-intensive activity is required to support the blockchain network. Instead, PoS consensus blockchains depend upon validators who stake an allocation of their crypto tokens to contribute to the block creation and validation process.

The more tokens a participant stakes, the higher the chance of them being selected as a validator towards securing the blockchain network. This process doesn’t stop at just improving the security of the network, it also ensures the principles behind decentralization and decentralized finance (DeFi) are maintained. The more diverse the number of validators available, the healthier and more successful the network becomes. 

Why Staking Is Here To Stay

There are five main sections that staking can be broken up into to evidence its place in the future of transactions and financial processes. They are as follows:

Passive Income

Staking allows stakers the opportunity to generate an income passively by simply staking their holdings to help secure the blockchain. Differing drastically from traditional finance (TradFi) savings alternatives, staking interest rates typically offer fair more appealing rates ranging up to 10% or beyond annually. This opportunity is usually the first thing investors notice when looking for the most attractive gains possible outside of TradFi savings options.

Decentralization

Staking builds towards a system that is more decentralized due to the diverse range of active participants in the network operations. Unless TradFi saving accounts are helped by centralized banks or PoW alternatives where mining power is concentrated — staking saves hardware costs, improves earnings, and divides power more fairly.

Blockchain Security

As mentioned, the staking process ensures a blockchain network’s security by increasing the number of validators on the network. This results in more opportunities to catch malicious transactions or bad actors and reduces the risk of network exploitation or attacks. Working together, stakers help build a stronger network that is more trustworthy and safer for all participants.

Ecosystem Growth

Staking rewards and contributions to network stability coincide with ecosystem growth as adoption rates increase exponentially. As staking opportunities become more accessible and appealing to users, PoS consensus-supporting networks correlate directly with expedited growth and infrastructure development. The better the staking opportunity, the bigger and safer the network becomes.

Environment Implications

Unlike it’s PoW energy-consuming alternative, the use of a PoS consensus doesn’t require vast pooling of computational resources to run the blockchain network. This makes PoS networks more energy-efficient, less energy-intensive, and therefore, less damaging to the environment. Furthermore, as the world moves towards carbon-neutral and carbon-negative initiatives, PoS methods will offer more sustainable solutions globally.

VALR: Staking Optimized  

As the shift away from PoW blockchains steadily rolls out, the number of PoS blockchains have grown substantially — complicating the decision of which platform to stake on. 

When considering this decision, it’s important to look for reliability, security, potential returns, ease of use, and long-term sustainability. While many projects have attempted to optimize the staking process and opportunities for holders, VALR stands head and shoulders above the rest as an innovator in the space. 

VALR is a leading cryptocurrency exchange renowned for its secure platform, user-friendly interface, and diverse staking options. Established in 2018 and surviving multiple bear markets, VALR has come out on top — serving over 600,000 traders and delivering comprehensive services to over 1,000 corporate and institutional clients globally.

VALR offers users a wide range of staking options for cryptocurrencies like Solana (SOL), Avalanche (AVAX), and TRON (TRX) — enabling users access to maximized staking earning potential with competitive ROI. 

Offering up to 5.9% for SOL and AVAX, and 3% returns for TRX, VALR provides investors with safe flexibility through its liquid staking solution. By making the process of staking, unstaking, and restaking streamlined with the need for lock-in periods, VALR enables users to benefit from compound interest and real-time earning accumulation.

Security is the primary priority at VALR, making certain that funds remain secure, out of third-party reach, and securely custodied on the platform. Designed to be user-friendly, accessible, and intuitive to user needs, VALR offers investors a web and mobile-friendly application to make staking an easier process than setting up a TradFi saving account.

Staking To Secure The Future 

The future of the crypto space will be one that is staked. As the fundamentals behind staking begin to enter the TradFi space, it’s becoming ever-clearer that staking platforms like VALR are here to stay.

Staking offers multiple compelling use cases that range from earning potential and security to infrastructure growth and transaction immutability. With this process becoming more accessible, sustainable, and accepted globally, staking won’t just secure your long-term ROI — it will secure your future.  

Don’t hesitate. Stake with valor at VALR — where your courage in crypto today earns the future you fight for tomorrow.