There are tons of things and concepts in crypto industry, where staking term seems to be a complicated idea or slightly simple one based on the levels of understanding you are willing to unlock. Considering majority of traders/investors, understanding the term staking is a way to earn rewards for holding certain ratio of digital currencies is the key takeaway.
However, even if any investor is looking to earn some staking rewards, they need to understand at least a little bit of basic concepts on what, how and why staking assets works the way it does. Here’s a simple single statement for you-
Staking provides crypto holders/owners a way of putting their assets digitally to work and in return earn some passive income without any need to sell them. Isn’t the definition quite simple? Let’s get deeper into the working of stake.
How Does Staking Work?
If a cryptocurrency a person own permit staking like the current options -Tezos, Cosmos, Ethereum (new ETH2 upgrade), the holder can “stake” their holdings and in return earn a percentage-rate reward over time. This activity usually takes place using a “staking pool” which you can relateas an interest-bearing savings account.
There are limited cryptocurrencies that offer staking, where we should get started with some more technical stuff. Just for your information- Bitcoin doesn’t offer staking mechanism, to thoroughly understand the reason you need to dig in a little bit of background.
Cryptocurrencies are sort of decentralized where there’s no central authority on the stage. The reason behind a person crypto earning rewards while staked is due to the blockchain that puts it to work. Cryptocurrencies allowing staking method eventually uses a “consensus mechanism” named as a Proof of Stake. This method is a simple way to ensure every single transaction is verified and secured without any use of bank or payment processor as an intermediate.
Cryptocurrencies To Stake
As explained earlier, staking is only possible with virtual currencies linked to blockchains that can use the proof-of-stake consensus mechanism effectively.The most notable cryptos include:
- Ethereum (ETH)
- Solana (SOL)
- Luna (LUNA)
- Polkadot (DOT)
Ethereum offers both “mine” and “stake” thus stands in a peculiar situation right now. Being the second-largest cryptocurrency according to the official market capitalization Ether is currently transitioning from proof-of-work (PoW) to a proof-of-stake (PoS) blockchain system which means that these two types of validation processes are functioning concurrently. A Plus point!
What is Proof of Stake?
An updated consensus mechanism known as Proof of Stake that has recently been introduced with an idea to influence the speed and efficiency while reducing the fees. A major way PoS minimizes the costs by not requiring all present miners to churn through math problems, which seems as an energy-intensive process. Instead, the motive transactions are thoroughly validated by person who are literally invested in the blockchain through staking.
Staking presents the same function as mining, where the process by which a network participant gets preoccupied to add the latest batch of transactions right to the blockchain and in return earn some cryptocurrencies in exchange.
Risks of Staking Cryptocurrency
Considering any type of investing specially in cryptocurrency you need to evaluate the associated risks:
- The nature of cryptocurrency is volatile. Fluctuations in price can easily outweigh the rewards a user earn. On the other hand, staking is optimal for the ones planning to hold their asset with respect to long term regardless of the price bars.
- Some assets need a minimum lock-up period where user will be unable to withdraw the secured assets from staking.
- If a user decides to withdraw the secured assets from a staking pool, they need to pass a specific waiting period with respect to each blockchain prior to getting the assets back.
- The user should ensure a counter party risk of the staking pool operator. In case the validator is careless in its job and gets penalized, the user might skip out rewards.
- At worst, the staking pools can be hacked which might resultin a total loss of staked funds. Since the cryptocurrencies are not protected by insurance, the user will be left with no hope of compensation.
Advantages of Staking
There are majority of long-term cryptocurrency holders that consider staking as a way to make user assets work by attaining rewards, instead of collecting dust in user crypto wallets. The mechanism of staking has some additional benefit of contributing to the security, prominence, and efficiency of the blockchain projects user support.
Right away by staking some user funds, a person can make the blockchain more resistant to attacks and tighten its ability to process mere transactions. At some cases, projects also award “governance tokens” with regards to staking participants, where holders get a say in future changes and upgrades to that protocol smoothly.
How Do I Start Staking?
Staking is fairly open to everyone willing to participate, that being said, to become a full validator a user need some substantial minimum investment. ETH2, for instance needs a minimum of 32 ETH, hence said technical knowledge is must, you can’t go blindly in this current crypto industry without a clue.
The user also needs a dedicated computer system to perform validations anytime without downtime barrier. Remember, participating on such level always alarm security considerations with some serious obligation, as downtime might cause a validator’s stake to become slashed.
Though, talking about the vast majority of participants,you have a simpler way to participate, you have atop suggested exchange to contribute an amount a person can afford to a staking pool. This reduces the barrier to enter the dream and permits any investors start earning rewards without operating user own validator hardware.
Telegram — @ajitnk
Content of this video:
0:58 Decentralized Cryptocurrencies
1:14 Bitcoin Mining
1:47 Proof of Work
2:31 Proof of Stake
2:50 How Does Staking Work?
3:47 Ethereum’s Blockchain
4:06 How to Stake Ethereum
4:48 Ethereum Staking Rewards
5:42 Staking Limitations
6:44 Staking on Exchanges
7:13 Staking Pools
7:47 Validator as a Service
8:12 Conclusion on Cryptocurrency Staking
9:00 Bloopers :)
📺 The video in this post was made by 99Bitcoins
The origin of the article: https://www.youtube.com/watch?v=0RhJBZGnOLQ
🔺 DISCLAIMER: The article is for information sharing. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Not investment advice or legal advice.
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This article will introduce the concepts and topics common to all programming languages, that beginners and experts must know!
Do you want to learn a programming language for the first time?
Do you want to improve as a Programmer?
Well, then you’re in the right place to start. Learn any programming language without difficulty by learning the concepts and topics common to all programming languages.
Let me start by answering the following questions:
Programming develops creative thinking
Programmers solve a problem by breaking it down into workable pieces to understand it better. When you start learning to program, you develop the habit of working your way out in a very structured format. You analyze the problem and start thinking logically and this gives rise to more creative solutions you’ve ever given.
Whether you want to uncover the secrets of the universe, or you just want to pursue a career in the 21st century, basic computer programming is an essential skill to learn.
_– _Stephen Hawking
Everybody in this country should learn how to program a computer… because it teaches you how to think.
_- _Steve Jobs
Programming Provides Life-Changing Experiences
Programming always provides you with a new challenge to take risks every time and that teaches you to take risks in your personal life too. The world is filled up with websites, apps, software and when you build these yourself you’ll feel more confident. When a programmer solves a problem that no one has ever solved before it becomes a life-changing experience for them.
A program is a set of instructions to perform a task on a computer.
Programming is the process of designing and building an executable computer program to accomplish a specific task.
Well, according to me programming is like raising a baby. We provide knowledge (data) to help understand a baby what’s happening around. We teach a baby to be disciplined (and much more) by making rules.
Similarly, a computer is like a baby. We set rules and provide data to the computer through executable programs with the help of a Programming Language.
That’s it👍. If you can understand this basic concept of programming, you’re good to go. Pick up a programming language and start learning. Read the following section to get an idea of where to start.
My recommendation is to choose Python Programming Language as a start, because it’s beginner-friendly.
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Some require and some are not. But acceleration programs might require you to build one. I’ll tell you how I made a computer program for the competition.
Written on the internet “blockchain-based ticket codes” and found the Ethereum source codes in Github. Then, I’ve just copied and pasted on my VS code by naming with .sol extension. Then, I’ve got my hands on the code itself and started to correct the mistakes that the editor has shown so far. Managed to reduce 189 errors to 58 within two hours. The rest was handled by my teammate when I sent the code I’ve edited. He just fixed the codes in three more hours and my mistake was not to increase the gas price. We increased the gas price on the remix and everything worked. And he just tested the software on scalability and security. It was the perfect garment for us that everything worked except the indentation errors.
What should’ve been done by us
Found all the codes including testing, copied them, and pasted them to our text editor for further analysis. Still, we had the prototype and we could write all the test codes, migrations, etc. if needed. Even more, we should’ve researched the codes to our project before using one of the examples.
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Before I get too deep into C, I need to show you how to get data into and out of your programs. Using assignment for data gets old after a while and you want to be able to have users enter their own data. And you definitely need to be able to see what happens to your data in a program so learning how to display data to the screen is important and necessary.
Besides demonstrating how to perform input and output in C, I will also be demonstrating two templates that are related to those topics — Prompt, Then Read and Input, Process, Output (IPO). The IPO template, in particular, is important because practically every C program you write will use this template.
When I talk about input and output in C, I’ll use the terms standard input and standard output. These terms refer to the default input and output devices on your computer. The standard input device is the keyboard. The standard output device is the computer’s monitor or screen. I will only use the terms input and output and when I use those terms I’m referring to standard input and standard output. If I want to refer to a different device for input and/or output, I’ll use the specific term for that device.
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In this video, you will know the top 5 Programming languages to learn in 2021. It is always confusing for a beginner to choose a programming language from the pool of tens of languages. So we have come up with this video to help you out chose the best one to start your career with and learn programming fast.
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