There are many cryptocurrencies that are available for staking in Guarda Wallet and even more will be added soon.
What is staking?
Staking is the process of storing funds on a cryptocurrency wallet. Users can get passive income for providing support of all operations on the blockchain. It is very similar to the bank deposit system and user rewards. However, unlike a bank, the placement of coins cannot lead to a negative percentage, there are no surcharges and hidden interests, your passive income is greater with fewer risks.
Proof-of-Stake makes the network more secure. A hacker's attack is possible only with 51% of all coins in their hands. Trying to hack into the PoS algorithm blockchain is unprofitable.
Staking is one of the main trends in the cryptocurrency market in 2020. Ethereum platform and other big projects are switching to PoS.
Assets for Staking on Guarda
We are always expanding the number of coins that are available for staking.
Stake CPU and NET.
Open the ‘Staking EOS’ tab and enter the amount of EOS that you want to deposit in the ‘Deposit the amount of CPU’ and ‘Deposit the amount of NET’ fields. Click ‘Next’, then ‘Confirm’.
The minimum deposit amount is 1000 ONE. You will begin to receive rewards almost instantly and you could claim it right after you get it. Don’t try to claim a reward that’s less than the network commission - it will be eaten up by fees!
Select your ATOM wallet, click on “Deposit for staking” and enter the amount of ATOM you want to deposit, and select the validator. Different validators can offer different deals. You can choose what you think is more profitable. Then the deposit will be sent to the validator.А
Tezos holders can stake their coins and receive Tezos token as a reward. Validators (Bakers) produce blocks and users can delegate their funds to Bakers. Each month, the Baker sends a reward for staking to users.
After the Shelley hard fork, Cardano staking became available on the mainnet. You can only stake the entire balance of your wallet. The minimum amount is 10 ADA.
Cold Staking protocol is not related either to Proof of Stake or a consensus mechanism – it is a contract between Callisto and its users, distributing the percentage of mining rewards between the holders in proportion to the stake. Guarda Wallet allows implementing Cold Staking inside the application.
Open your TRON wallet on Guarda and click "staking", then "Deposit for staking". Select the validator in the "To" field. You can select a validator depending on the reward amount. Please note that each validator has the required minimum deposit amount.
GAS is a token that is distributed on the NEO network to NEO holders and is used to pay the transactions fees. The minimum unit of GAS is 0.00000001. You can claim GAS on Guarda. All you need to do is to send some NEO before that, even to yourself. After that, NEO network allows you to claim GAS.
Ontology Gas (ONG) token is the fuel for transactions on the Ontology network. ONG is distributed on the Ontology network to ONT holders. If you have ONT on your balance, you can get ONG. After each generated block, ONG is distributed among ONT holders.
Take the advantage of Komodo Platform’s stake system, producing 5% rewards for simply having KMD in their wallets. You need to have at least 10 KMD on your wallet in order to begin staking.
Calculate Your Rewards
You can get a passive income using Guarda Wallet. It’s much more profitable and secure than bank deposits. The longer the coins are held and the more coins are sent, the higher are the individual rewards.
PoW vs PoS
The first decentralized algorithm successfully implemented in the blockchain, and is still used on Bitcoin, Ethereum (Ethereum plans to switch to proof of stake), Litecoin, ZCash, Monero is Proof of Work (PoW). The algorithm requires complex calculations, the result of which can be easily verified by each network participant.
Proof-of-Stake (PoS) will make the consensus mechanism completely virtual. While the overall process remains the same as Proof-of-Work (PoW), the method of reaching the end goal is entirely different. In PoS, instead of miners, there are validators. The validators lock up some of their coins or tokens as a stake in the network.
To add each block to the chain, miners must compete to solve a difficult puzzle using their computers processing power.
In order to add a malicious block, you'd have to have a computer more powerful than 51%of the network.
The first miner to solve the puzzleis given a reward for their work.
There's no competition as the block creator is chosen by an algorithm based on user's stake.
In order to add a malicious block you'd have to own 51% of all the cryptocurrency on the network.
There's no reward for making a block, so the creator takes a transaction fee.
Algorithm Types For Staking
The main types of consensus algorithms for staking:
Proof of Stake. (PoS)
Unlike the Bitcoin’s Proof-of-Work* (PoW) method, the next block validator is selected based on the number of coins and by random combinations. To receive a reward, you just need to hold (HODL) coins in your wallet. User’s rewards = transaction fees.
The algorithm requires complex calculations, the result of which can be easily verified by each network participant. For example, transactions in the Bitcoin blockchain are grouped in a memory pool while a block is created every 10 minutes.
Delegated Proof-of-Stake (DPoS)
This consensus mechanism was designed to solve the problems of BTC scalability. Its process is similar to the principle of democracy. About twenty fullnodes are selected for mining blocks. Those users who voted for them receive a percentage of the block reward.
Leased Proof-of-Stake (LPoS)
This mechanism allows any user with a small balance (number of coins) to “lease” (account leasing) their coins to fullnodes with a good connection. Users can receive a reward for block creation and participate in the life of the network.
A fullnode can become a masternode if it invests a large number of coins. Such nodes are considered more reliable than fullnodes. Masternode stacking usually combined with PoS or PoW.
Bonded proof-of-stake (BPoS)
Any number of users set aside part of their stake in order for new blocks to generate. They lock up part of their stake for a certain period of time (security deposit). Then they get a chance to select the next block proportional to their amount of staking.
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