The existence of cryptocurrencies is aided due to the process of proof of work (an algorithm that does the work of securing the cryptocurrencies). In fact, it is the concept of proof-of-work that was a breakthrough and helped Nakamoto ideate something like cryptocurrency.
But as time passed, the usage of energy that comes with mining the cryptocurrencies or carrying out the process of proof of work has worried many experts and champions of the environment around the world. And, one query that is popping in present times is – should we maintain this amount of energy consumption in order to have a decentralized cryptocurrency? The answer to this query must be ‘NO’ for most of you.
There must be an answer or better alternative to this issue wherein the peer-to-peer cryptocurrencies do not have to be dependent heavily on massive energy consumption. And, this is where the staking of cryptocurrency steps in! The term ‘proof-of-stake- was first discussed or came into public light in the year 2011 and in simple terms, it can be understood as ownership of digital currency (cryptocurrency in this case).
Staking Cryptocurrency:
Staking cryptocurrency is a passive and energy-efficient way to make money through cryptocurrencies. Yes, people, you read it right! You can easily make money through cryptocurrencies without having to use high-performing computers that require huge amounts of energy to operate. Just like proof-of-work (in the case of mining cryptocurrencies), proof-of-stake also helps to verify the transactions but is different in terms of the process involved. Staking cryptocurrency is different from cryptocurrency mining yet both of these processes yield income for you!
If the term ‘cryptocurrency staking’ sounds complex to you then don’t you worry as it is simple. The increasing number of online cryptocurrency token exchanges aim at making it simple for common people like you and me. In order to understand the staking of cryptocurrency, you need to first understand what blockchains networks do!
The blockchains are decentralized in nature and there is no involvement of any intermediaries (like brokers, brokerage firms or banks) in order to validate any kind of financial activity that takes place. The used just collate the blocks of data of transactions that place and then it gets recorded on a public ledger. The user or miner whose blocks are accepted, get a reward in form of some fee or cryptocurrency token.
In addition to this staking, cryptocurrency is a way to prevent errors and fraud in the process. Miners who propose a new block in order to add it to the public ledger put some of their cryptocurrency tokens aside and it is these sets of cryptocurrency tokens that get incentivized. In general, the more cryptocurrency tokens you stake, the better are your chances to earn rewards in the form of rewards. As and when a block proposed by the user is found to have inaccurate information, they lose some of their staked cryptocurrency tokens and this process is called slashing.
Which cryptocurrencies allow you to stake?
Well, there are a number of cryptocurrency tokens that let you stake their tokens and one of them is EMOCOIN. Also, if any cryptocurrency, like Emocoin, is linked to a proof-of-stake blockchain and also uses the incentive mechanism as mentioned above, then it is eligible for the staking work. Having said this, staking of cryptocurrency works differently across various blockchains and certain cryptocurrency assets are more supported by the staking features. One such cryptocurrency is Emocoin. If we talk about the rewards for staking cryptocurrency then it varies and is based on some conditions (like demand on the blockchain network ) and the process you decide to use. But, the rates offered by the cryptocurrency exchanges do offer insight into what you can expect, beforehand.
Now that you know about the staking of cryptocurrency, let us tell you how you can do it yourself and begin your journey of making passive income through EMO Stake.
Start Staking Cryptocurrency with EMO Stake:
For those of you who are unaware, Emocoin is relatively a new digital currency that has gained traction in a short time. The makers of Emocoin want to empower common people to use the advantages offered by blockchain technology through this digital currency.
Well, from a handful of components offered by Emocoin, EMO Stake is one of them. This component allows you to first purchase and then freeze the tokens in the Emocoin network but for a specific time. The users or participants are remunerated through earning Emocoin tokens. EMO Stake allows you to freeze the tokens that become a part of the security framework of the network and it aids the running of the network. On the other hand, the tokens that are freezed through staking remain within the network and are used to give loans to other users (like you) present in the Emocoin ecosystem. Therefore, EMO Stake helps both the lenders and borrowers make some income!
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