Crypto Academy Contest / S1W3 – Blockchain through the concepts by @breeze.com (STAKING)
Hello dear people of steemcommunity it is a great pleasure parting in week three of season 1 in the crypto academy . Week two was characterized with a lot of intense activities yet we went through and still pushing strong .Hope you are doing great where ever you are? It will be awesome to know that you are doing great.
Introduction
This week’s crypto tasks warrant us to make a review of any blockchain related concept. And I will be discussing on staking this evening.
This term may not really sound so strange to users since it is has been around for some time and it has been used in the banking system and even in the gambling sector.
Tell us about your favorite concept or term related to blockchain, try to be explanatory and make sure to give your opinion
In simple terms staking means you lock up and asset for some time. This could be for saving purposes or other reasons. In the blockchain, staking crypto means locking your crypto assets for a considerable number of time in order to support network in the blockchain and also aid in the confirmation of transactions .
Thus, it is a deliberate action where crypto users store their crypto in the blockchian. Most crypto projects reward stakers after some time. I want you to see staking as putting your money in the bank to generate interest. Yes it is the same scenario; crypto users also borrow crypto assets in centralized exchanges and equally pay interest. So you who staked your crypto will also benefit from the interest generated. I have staked Tron in the Tron network to be able to acquire energy and bandwidth .also I also stake steem in the form of steem power to be able to carry out proof of brain in the steem ecosystem.
Why do you think it is important in the blockchain?
Staking has many advantages to the blockchain including;
- Staking is an effective way to protect the environment as compared to crypto mining since it is environmentally friendly
- Also ,taking part in staking will help to boost the efficiency and security of any blockchain ecosystem
- Staking helps in authenticating transactions in the blockchain as already mentioned (proof of Stake )
Source
Do you think that the existence of the blockchain would be possible without this concept? Is there an alternative or similar term?
The existence of most blockchains would not be possible especially those blockchian that uses the proof of stake to validate transactions. Steem blockchain for example will not be efficient if staking is not done. It is through staking in the form of steem power that that proof of brain mechanism become possible and this ensures sustainability in the blockchain. Well they are other methods a blockchain can be sustained but I believe staking is beneficial to both the staker and the blockchain as a whole.
Do you think it is possible to improve this term in some way? Explain us how
Staking is in its simplest form but they are other alternative forms we could refer to staking such freezing, holding, blocking, preserving, and vaulting. Most blockchains have already adopted some of these terms. But no matter the appellation the function is the same.
Conclusion
Staking is concept that has come to stay with the blockchain and some blockchain offer up to 20% interest per year for those that stake crypto in most centralized platforms. Thus, it is a great way to earn passive income. However, investing in any crypto is a risky venture. Do not invest more than you can afford to lose.
I think staking is also an essential part of the blockchain, as you've listed in this article, it's importance cannot be overemphasized, thanks for this report on 'staking' I learnt a great deal
Thanks for educating us about the importance of staking and in simple terms
I didn't know staking is in every Blockchain just like steemit.
Good luck in the contest