- Bitcoin Halving event come with a lot of challenges too.
- These challenges mostly affect the miners, they either change their approach or quit the markets.
- The factors that add to miners exit are increased costs, hash rate increase and high drop in the output.
Bitcoin undoubtedly remains the most successful cryptocurrency. From the time it has come into existence, it has created a leading place for itself in the Crypto Industry. Events like Bitcoin Halving contribute to the capitalization of the industry. It determines the rise in the Bitcoin price.
The advantages of the Bitcoin Halving event come with a lot of challenges too.These challenges mostly affect the miners in the Bitcoin space. Miners either change their approach or quit the markets. And well, miners do not choose to exit but are compelled to do so. The factors that add to their exit are increased costs, hash rate increase and high drop in the output.
Few coins have implemented strategies to gain miners after having recognized the above problems. They attract miners using a policy called (PoS) Proof of stake-staking. And a method called (PoW) Proof of Work to replace old PoW.
What is the Proof of Stake-PoS?
To develop an insight about PoS, it is referred to the consensus algorithm in the Blockchain. Wherein, the participants will reinforce or stake their coins into the Blockchain network. This is to perform validation of transactions and to create new blocks. These participants will then be given block rewards to acknowledge their contributions.
In short, staking let’s a certain amount of coins be stored in a wallet of a blockchain project. They are stored for a time period so as to earn rewards. The reward depends on two factors- amount of coin stake and duration of stake.
Different types of Staking
1. Direct Staking
Many coins have their own wallets wherein users can receive and transfer coins to each other. In addition, their own wallets of PoS coin features built-in staking. This requires the users to download the wallet, hold the coin and receive the coin stake.
2. Staking on the Platform
Many exchanges have implemented the staking platforms. This is to help users earn income through staking coins on the wallets directly. The advantage of this method is it allows quick trading of coins when the market faces huge fluctuations.Binance Exchange launched the staking platform recently.
3. Staking on purse, staking platform
Staking on exchanges results in low interest rates oftenly. Hence, one can participate in the reputable platforms in order to earn higher passive income. Besides that, a number of cryptocurrency wallets exist that offer support to users in staking coins.
Benefits of Staking
- One can receive compound interest through the increased coin price.
- It is less expensive as it involves only the buying of coins and storing them in the wallet.
- It is simple and is easy to implement.
- Staking costs are exceptionally low.
- It offers full security as backup of the wallet always exists.
- Few coins offer exceptional profits.
- Mechanism of Staking will help in the stabilisation of the prices partly.
Limitation of Staking
Coins are stored and locked for a time period. Possibilities of coin’s price going down during staking exist. Hence, one needs to be careful in deciding the coins and the time bought for Staking.
P2P staking is a set of protocols granting the community access to nodes and masternodes. This is to increase the number of coins participating in the nodes and the blocks. Hence, creating wider opportunities to earn rewards.
Advantageous Features of P2P Staking
- High Speed
- Ensured Security
- High Effectiveness
- The staking that is assigned to a data processing center gathers the small investors to form a big Note.
- ALS staking is a P2P staking technical solution to the global investor community. It enables the P2P staking method to enable the investors worldwide to participate proactively and easily in the Staking process.
- Investors have a choice to invest in TRX, ADA, ZRX, EOS, ALS, XTZ assets.
- Profit payments are made on a daily basis.