5 Cryptocurrency Staking Providers – A Review – hackernoon.com
The best spot for an intriguing adventure to everything crypto.
Staking cryptocurrencies has largely become a primary form of earning passive income in the crypto space.
In recent months, there has been a noticeable growth in the number of staking services providers, with a growing number of crypto-exchanges and platforms adding support for proof-of-stake (PoS) tokens opening a gateway for staking.
Following the growth in the number of proof-of-stake digital assets, there has also been a consequent increase in value locked in staking platforms. Currently, the value locked in DeFi staking platforms is between $21-$23 billion, and similar growth is expected in 2021. In this guide, we will look at crypto staking in detail as well as the best crypto staking providers in 2021.
Cryptocurrency Staking Explained
Proof-of-Stake and Proof-of-Work are the two principal means of achieving consensus in blockchain networks. Unlike PoW, which involves mining, which requires computer-intensive processing, PoS networks require network participants to achieve distributed consensus by staking the network’s native assets.
Stakers function to validate transactions on the network where the winning validator is selected via a combination of random selection as well as the amount a participant is staking. Once the winning staker validates the transaction, they receive a reward in the form of new coins. The amount staked functions as collateral for validating transactions.
In simple terms,