2019 is more than halfway through, and the whole blockchain industry is warmed up. If there is anything that is going to influence the development of the whole industry, it will be that the consensus mechanism of Ethereum (ETH) that gradually transfers from POW (proof of work) to POS (proof of stake).
ETH (the second most valuable crypto currency) “turns around”, which directly expands the market of POS, and soon afterwards, the main network of public chain COSMOS(token ATOM) launches online, which also attracts lots of attention. Staking, concomitant with POS, becomes a new hot spot of the industry silently.
Chinese name of Staking: QUAN YI ZHI YA (权益质押).In simple terms, the mortgage mining under the consensus mechanism of POS similar mechanisms, such as DPOS (delegation proof of stake) and BPOS (biding proof of stake), and this is exclusive to the blockchain network adopting POS mechanism. In POS or similar mechanisms, anyone can earn coin by encrypting assets pledge and hedging, the rate of return is calculated by currency unit, the size of the rate of return depends on the inflation model for encrypted assets. This year, the hot ATOM, XTZ, and IRIS – all adopted staking model.
Put it simply, Staking is mortgaging assets to mine, the more the mortgaged assets are, the higher the benefits will be. There are two modes to join in the pledge basically: first, pledge by the official wallet of the main network or the decentralized wallet such as imtoken, this kind of mode is relatively safe, the chain delegation is only conducted at the equity level, but the private key will not be disclosed; the other is putting the coin in the decentralized wallet or mining pool, for instance, Huobi mining pool supports the equity pledge of various coins, but it equals to present your own coin to others for safekeeping, it is less safer than the first one but its entry threshold is lower.
As Staking becomes hot, it not only popularizes a batch of model coin & wallet, but also spawns Stakingmodel exchange.
The hottest GCCX Exchange lately adopted Staking model.
GCCX Exchange adopts Staking’s POS equity mining machine model, with GCNT token in account of GCCX Exchange, users can freely rent mining machines of different production quantities and time at different sizes, and achieve more GCNT tokens by GCNT Platform equity hashrate.
This kind of coin mechanism directly puts the produced GCNT into users’ GCCX Exchange account. Users cannot only earn bonus from GCNT quantity increase but also enjoy profit from GCNT price increase by lease. It is exactly the reason why there are nearly one million users registered in GCCX Exchange in just half a month, and moreover, daily user registrations grow exponentially, daily active users reach the amount of hundreds of thousands, and activeness is heading for the frontline exchanges.
As more and more POSpublic chain main network publishes, coupled with recovery of encryption market, the total amount of Staking award will be increased largely.
Under the decentralized economy, because of the emerging of POS consensus mechanism especially the network effect brought by the projects such as EOS, Tezos and Cosmos, a large scale of business application value starts to be prominent, and the derived Staking economy is in a period of vigorous development.
Both the opportunities and challenges brought by Staking may take some time to test the market. Can it change the traditional mining industry? Let’s wait and see.
Looking forward to seeing more ecology with Staking high-quality economic model.