Almost everyone in the digital space will definitely agree with the fact that the emergence of cryptocurrencies into the digital system, is a great thing for both the digital system and the world, as it is already working its way into different platforms and sectors, with the aim of perfecting their performance.
Surprisingly, the cryptocurrency has gained an incredible rate of adoption right from when it was created and those who have adopted, are in fact, enjoying great benefits as a result of its use.
Benefits such as, increased speed of transaction, privacy and security of operations, reduced fees and many others, are enjoyable by users, while making transactions using the cryptocurrency.
But there is something a lot of these users have been missing in the cryptocurrency industry. The aforementioned benefits are just a few of the advantages of using cryptocurrency for transactions as there are still a lot more, one of which is the Staking reward.
If you are a cryptocurrency enthusiast, am sure you have probably heard of the term “staking” and the reward it carries.
Well, not to worry if you haven’t, here is a breakdown of…
What Cryptocurrency Staking Is
Staking of cryptocurrency is done by a user who has some digital assets in their possession, giving them the ability to lock up these coins in a masternode or smart contract, for a specified period of time, generating benefits for them in return.
The benefit generated when the user stakes their crypto coin in a smart contract is the addition of more coins to the user and is solely dependent on how much coins the user staked and how long it stays locked.
So, for a user to embark in the staking activity, the user has to choose the right coin to stake, one with high staking reward, which has a high potential of yielding great returns.
Staking of cryptocurrencies is in fact not really a new activity in the cryptocurrency industry as it has been going on for a long while now.
It was invented in the quest to make the use of cryptocurrencies more beneficial and add more value to all the users in the cryptocurrency industry, who adopt it.
Staking of cryptocurrencies makes a user a huge supporter of the network involved and an active participant in the activities of the system.
There are a lot of benefits opened up to the users as a result of staking their crypto coins on a system such as granting them a veto power.
When users stake their cryptocurrencies on a masternode, they become supporters of the system and are given the power to make decisions on the system through voting.
Providing the users with a guaranteed stream of income is another great benefit of staking coins on a system.
Since this process rewards users after an agreed period of time, with the staking reward, based on their coin amount, a user who takes part in staking can rely on the rewards that come from it and even regard it as another source of earning passive income.
How Proof-of-Stake (PoS) Makes All These Possible
For a cryptocurrency project to make coin staking possible on its system and drive more supporters to its network, it adopts the Proof-of-Stake (PoS) algorithm, as its consensus mechanism.
This is because this consensus mechanism (PoS) is a method through which blocks are validated on the network merely by staking coins and as the name implies, Proof-of-Stake, it rewards the users based on the number of coin they have staked, as they are chosen randomly to become the block validators, due to the aforementioned qualification.
This PoS consensus makes the staking possible without the dependent on the inefficient mining method of Proof-of-Work, where a great computational power is needed to get mining rewards, but PoS makes it super easy for every user to get more benefits from cryptocurrency staking.
How The Algorand PPoS Gives Better APR For Algo Staking
Algorand is a Blockchain protocol which runs with a Pure Proof-of-Stake (PPOS) consensus and is designed to be permissionless and open-source, allowing anyone to participate in the activities of the system.
The Algorand Blockchain is more improved and better than other Blockchain systems through its use of a highly functional consensus called the Pure Proof-of-Stake (PPOS) algorithm.
Algorand unlocks more benefits to its users as it releases better staking rewards to users who stake its native token called the Algo token.
Because it uses the Pure Proof-of-Stake, an improved version of the PoS used normally in staking, the Algorand platform gives its users a chance to earn more staking rewards since this consensus helps give users, a great Annual Percentage Rate (APR) for staking Algo on its system.
By being superior to the PoS, the Algorand PPoS ensures that the staking reward for algo is compounded with a greater APR.
In order to stake Algo and start earning, there are different cryptocurrency wallets which support the staking of the Algorand native token, made available to give unrestricted benefits to the global users of this great system.
To make crypto staking on the Algorand platform more transparent and reliable, this great system has even designed a staking calculator, to help users ascertain how much reward they can earn for staking Algo for a stipulated time.
Algorand even launched a staking program on its system, from which a lot of users gained unlimited staking rewards from.
Users on the Algorand platform who wish to take part in the staking process of the Algo token, have a lot to benefit especially because of the PPoS consensus used by Algorand, which gives an improved APR than what users gain when they are staking other coins.
Staking of cryptocurrencies just got better with the Algorand platform, providing an opportunity for anyone to enjoy a reliable passive income staking Algo.
Thanks to Algorand, the use of cryptocurrencies is now made more rewarding than it already is, by the staking of Algo.
Please click here: https://algorand.foundation/200million-staking-reward-program-launch to read more about Algo staking program.
Article Written By: Anderson