Cryptosmart, the first 100% Italian exchange platform, is conquering more and more people thanks to its transparency and ease of use. In addition to allowing its users to invest in different types of crypto, it offers a series of additional services such as Cryptosmart Market (designed for businesses) CSpay (allows you to use cryptocurrencies in the real economy) as well as the recent Staking service.
Contents
In this article we will talk about the innovative service Staking by Cryptosmart.
What is Staking?
Simply put, blockchain technology enables peer-to-peer transactions without any central authority or third party (e.g. banks) by using cryptocurrencies as incentives for computers running software to complete transactions on their behalf. This idea of decentralized networks (or distributed) has many applications in a world where we are more connected than ever, but within which we still rely on centralized institutions and organizations (e.g. governments, banks, media houses) to mediate.
Staking is the operation that consists in “freezing” a portion of cryptocurrencies present in your wallet with the aim of receiving a reward in the short term. The reward may consist of the possibility of receiving an annual amount of new cryptocurrencies from the blockchain, as in the case of CryptoSmart, and more generally it is associated with the greater probability of being chosen as validators of the next block of the blockchain.
It should be noted, however, that this particular operation can only be carried out within the Proof-of-stake protocol (PoS), born in opposition to the Proof-of-Work (PoW) system with the aim of overcoming some of the latter's critical issues, such as scalability limits and the problem related to energy consumption.
Alessandro Frizzoni, Founder of Cryptosmart, says: “Our platform is constantly evolving and the latest innovation we have proposed is staking, a new service that allows our users to increase their cryptocurrencies by staking them and using them for the production and validation of blockchain blocks. This represents an important innovation in the Italian panorama. of cryptocurrencies: in fact, we have always been committed to the research of innovative systems at the service of ordinary people".
Proof of Stake (PoS) Vs Proof of Work
CryptoSmart’s stalking service is based on the Proof of Stake mechanism. In essence, instead of requiring nodes to perform difficult calculations to validate transactions (Proof of Work), PoS requires them to prove ownership or stake in their respective networks. In PoS-based systems, rewards are awarded not only for validating transactions, but also for helping maintain the integrity of the network by holding or accumulating tokens in your wallet. The more coins you are willing to stake, the more likely you are to receive rewards.
Is staking profitable?
CryptoSmart's stalking service allows you to increase your cryptocurrencies in an "automatic" way by simply tying up even just a small part of your crypto wallet. The benefits are visible every week and the reward varies based on the type of cryptocurrency and the amount of it used for Staking. In general, the annual estimate of new crypto received varies 4% to 12%.
What if you change your mind? No problem: the end user is always free to change the use of the cryptocurrencies put at the service of Staking.
How to stake with CryptoSmart?
To use the CryptoSmart Staking service, simply:
- Purchase (or hold) Crypto eligible for staking directly from the CryptoSmart platform. Currently eligible cryptocurrencies are Ethereum (ETH), Cardano (ADA), and Polkadot (DOT).
- Stake it, that is, select the amount of Crypto suitable for staking directly from the Cryptosmart platform.
- Accumulate Crypto, every week the crypto present in the Wallet increases if kept in “Stake”.
Article published on May 3, 2022 - 08:00 pm
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