Staking is a process where users can help the blockchain function by locking their assets to proof-of-stake networks. With this work, in addition to helping to process transactions, network security is also provided. Users receive a reward from the network for locking their assets.
Networks with a proof-of-stake consensus mechanism require less energy to perform a transaction and extract new currencies than networks with a proof-of-work consensus mechanism.
An increase in assets in proof-of-stake networks will increase confidence in the absence of problems in blockchain networks.
Each transaction in the network needs to be confirmed by the nodes of a network. By participating in the staking process, the speed of confirming a transaction will increase
Staking is a way to earn rewards by holding your crypto assets on a Proof of Stake (PoS) network. In this process, your crypto assets are locked in the network to help in the mining process. As a result, the network rewards all participants who helped in mining new coins.
If you have a minimum amount of assets in one of the supported cryptocurrencies, you can stake them.
Each network that supports staking has its own conditions, rules, and complexities. Nobitex has created a staking platform to provide all the staking steps in each network in a uniform and clear structure so that users can benefit from staking rewards in a simple and user-friendly environment without the complexities of different networks.
Each cryptocurrency has its own staking reward rate, which is abbreviated as APR. APR means the annual percentage rate. For example, if you stake for one year, you will receive a percentage of the staked assets as a reward. The APR announced for each network is approximate and the possibility of change in each day based on the rules of each network exists.
When you stake your assets, your assets are locked up to the amount of staking and will not be available until the staking period expires. Therefore, if the value of the staked asset decreases, there is no way to manage it. Some networks have rules for staking that if the staking participants (validators) in the network are out of the network for a certain period of time and are called Down time, they will take a portion of the staked assets as a penalty. Nobitex considers all the factors that can be considered in selecting validators. But the structure of different networks will always be exposed to this risk.