LONDON, UK / ACCESSWIRE / April 15, 2020 / Since its inception, Bitcoin has confirmed its potential as well as its foothold in the economy 4.0. Even Bitcoin has become one of the hottest topics of the past few years, especially in the moments before and after Bitcoin Hafving because this is a period of sentiment that marked a dramatic rise in the price of Bitcoin as well as the capitalization of the entire cryptocurrency market.
2012: BTC price from ~ 200 $ up to ~ 1200 $ (up 6 times)
2016: BTC price from ~ 600 $ up to ~ 20,000 $ (increase more than 3,000 times)
The benefits of Bitcoin Halving are huge, but also become a significant challenge for some miners when participating in the mining environment. Increasing costs, increased Hashrate, and a significant drop in output have forced small miners to change their approach or leave the mining market.
Facing these problems, some coins have introduced policies to attract miners by using POS (Proof of stake – staking) to supplement or replace the old POW (Proof of work) method. Typically, the Dash event used the Master Node to mine in 2017 and caused a sharp increase in price.
By 2020, on the threshold of halving, investors are more interested in POS (Proof of Stake), and POS has become one of the most talked about topics in technology finance forums in the world. So what is POS (Proof of Stake)?
- What is POS (Proof of Stake)?
When we refer to the first generation of Blockchain 1.0 as Bitcoin, then to the next generation of representatives of Ethereum, we are all familiar with the term PoW (Proof of Work) or proof of work.
2011 – “PoS – Proof of Stake” or Proof of Stock was very popular in the Crypto market. It is considered the consensus mechanism of the future, which will replace PoW, which requires high hardware and power consumption.
Proof of Stake (PoS) is the consensus algorithm in Blockchain. In which, participants will stake their coins (coin bets) into the Blockchain network to validate transactions and create new blocks. Rewards (including block rewards and transaction fees) will be given to participants Join PoS to motivate their contributions
Or, put it simply, it is almost like sending a fixed amount of money into a bank to save. The bank will pay you a fixed interest rate at the end of the contract period.
Staking is the act of keeping a certain amount of coins in a wallet or Nodes / Masternodes of a Blockchain project for a period of time to receive a reward. This award is based on the effort spent including: the amount of coin stake, duration of stake.
- Types of staking today
– Stake directly
Many coins develop their own wallets so users can keep, receive and transfer coins to each other. Besides, the own wallet of POS coin has built-in staking feature.
Users need to download wallet, hold coin, you can get coin stake.
– Stake on the floor (stake receives reward)
Many exchanges have launched staking platforms, helping users to earn passive income from staking coins directly on the wallets. The advantage of this method is that you can quickly trade coins if the market has strong fluctuations, without waiting for the time to send from the wallet to the floor.
Recently, Binance exchange has launched a staking platform, with fellow like ONE, TRON, QTUM …, you can visit binance.com/staking to participate in staking on this exchange.
– Stake on purse, staking platform
Stake coins on exchanges often have low interest rates. Therefore, to maximize passive income, you can participate in reputable staking platforms.
Here are some platforms that allow you to deposit POS coins and earn interest:
In addition, there are already a number of cryptocurrency wallets that support staking coins for users. Names can be named as Trust Wallet, ALS wallet
- Advantages when staking
– Likely to receive compound interest from the coin’s price increase and the number of coins received from Staking
– Less expensive than POW, not investing in excavators, just buying coins and locking them in a wallet
– Staking costs extremely cheap
– Simple and easy to implement
– 100% secure because there’s always a backup of your wallet
– Some coins are extremely profitable
– Staking mechanism will partly help stabilize prices because this mechanism encourages users to hold coins
- Disadvantages when staking
– Coins are locked (locked) for a certain period of time. There is a possibility that the coin’s price will go down during Staking. So it is necessary to choose carefully the potential coins and the time to buy for Staking.
- P2P staking is an opportunity for more people
– What is P2P staking?
P2P staking is a protocol that grants access to nodes or master nodes for the community to increase the number of coins participating in nodes and block opening performance for rewards. Specifically, each investor will contribute a certain amount of coins to our Nodes or Master Nodes system to create staking machines.
Giant to create as many rewards as possible instead of becoming mini nodes without much power.
– Advantages of P2P Staking
– Cons of P2P Staking
- The staking assigned to a data processing center stands out to gather small investors to form a Big Note
- ALS STAKING – A pioneer in P2P staking trend
- ALS staking is a Staking P2P technology solution for the global investor community. ALS STAKING uses P2P Staking method to enable all investors around the world to participate in the Staking process easily, proactively and can best control risks.
- Investors can choose to invest with the following assets: TRX, ADA, EOS, ZRX, XTZ, ALS
- Profit is paid daily
- Payment method: TRX, ADA, EOS, ZRX, XTZ, ALS (choose which asset staking will receive profit with that asset)
- ALS is a reciprocal token of ALS Staking based on Ethereum’s ERC20 standard. ALS is used for Billing in the Alliance Group ecosystem. With the clever use and reverse operation mechanism to create scarcity and sustainable price raising mechanism as the ALS community and ecosystem is growing and expanding.
- ALS is used to counteract partners. In addition, ALS can be used to pay for transaction fees on the ALS Exchange, reducing transaction fees.
SOURCE: Alliance Group
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