Techfortress

If you know how Bitcoin works, you’re probably familiar with Proof of Work (PoW). If you’re not, then it is simply the mechanism that allows transactions to be gathered into blocks. Then, these blocks are linked together to create the blockchain. More specifically, miners compete to solve a complex mathematical puzzle, and whoever solves it first gets the right to add the next block to the blockchain.

Proof of Work has proven to be a very robust mechanism to facilitate consensus in a decentralized manner. The problem is, it involves a lot of arbitrary computation. The puzzle the miners are competing to solve serves no purpose other than keeping the network secure. One could argue, this in itself makes this excess of computation justifiable. At this point, you might be wondering: are there other ways to maintain decentralized consensus without the high computational cost?

Enter Proof of Stake. The main idea is that participants can lock coins (their “stake”), and at particular intervals, the protocol randomly assigns the right to one of them to validate the next block. Typically, the probability of being chosen is proportional to the amount of coins – the more coins locked up, the higher the chances.

This way, what determines which participants create a block isn’t based on their ability to solve hash challenges as it is with Proof of Work. Instead, it’s determined by how many staking coins they are holding. Some might argue that the production of blocks through staking enables a higher degree of scalability for blockchains. This is one of the reasons the Ethereum network is planned to migrate from PoW to PoS in a set of technical upgrades collectively referred to as ETH 2.0.

How does staking work?

Proof of Work blockchains rely on mining to add new blocks to the blockchain. In contrast, Proof of Stake chains produce and validate new blocks through the process of staking. Staking involves validators who lock up their coins so they can be randomly selected by the protocol at specific intervals to create a block. Usually, participants that stake larger amounts have a higher chance of being chosen as the next block validator. This allows for blocks to be produced without relying on specialized mining hardware, such as ASICs. While ASIC mining requires a significant investment in hardware, staking requires a direct investment in the cryptocurrency itself. So, instead of competing for the next block with computational work, PoS validators are selected based on the number of coins they are staking. The “stake” (the coin holding) is what incentivizes validators to maintain network security. If they fail to do that, their entire stake might be at risk While each Proof of Stake blockchain has its particular staking currency, some networks adopt a two-token system where the rewards are paid in a second token. On a very practical level, staking just means keeping funds in a suitable wallet. This enables essentially anyone to perform various network functions in return for staking rewards. It may also include adding funds to a staking pool, which we’ll cover next!

Pool Staking

A staking pool allows multiple stakeholders to combine their computational resources as a way to increase their chances of being rewarded. In other words, they unite their staking power in the process of verifying and validating new blocks, so they have a higher probability of earning the block rewards.

The overall idea of the staking pool model is quite similar to the traditional mining pool, which involves the pooling of hash rate in a Proof of Work (PoW) blockchain. However, the staking pool setup is only available on networks that employ the Proof of Stake (PoS) model or, in non-POS systems through protocol design features.

Typically, a staking pool is managed by a pool operator(usually an accredited trading platform like ourselves!) and the stakeholders that decide to join the pool have to lock their coins in a specific blockchain address (or wallet) managed by the pool operator.

While some pools require users to stake their coins with a third party, our staking pool service allows stakeholders to contribute with their staking power while still holding their coins in their personal Techfortress wallet. That means you retain full access to the coins you’re staking and also can opt to withdraw your already mined coins whenever you want to, at a standard withdrawal fee.

Staking pools and Solo staking

Compared to solo staking, a staking pool will give smaller rewards because each successful block forging (validation) will split the rewards among the many participants of the pool according to capital contribution. However, staking pools provide more predictable and frequent staking rewards compared to solo staking. They allow stakeholders to earn passive income without having to worry about the technical implementation and maintenance of setting up and running a validating node.

Thanks to a combination of steady coin supply as well as faster coin rewards for a diverse selection of coins, pool staking has become a very popular investment option for beginner and veteran crypto currency investors alike.

HOW TO STAKE WITH Techfortress

In a way, you could think of holding your coins with Techfortress as adding them to a staking pool. You can withdraw coins any time before your staking cycle expires at a small penalty fee, and you can also enjoy all the other benefits that holding your coins on Techfortress brings! The only thing you have to do is hold the minimum amount of PoS coins required to stake on Techfortress, depending on whether you’re staking as an individual or a pool, and all the technical requirements will be taken care of for you. The staking rewards are usually distributed directly to your Techfortress wallet at the start of each month.

Our staking option is currently available in over 15 countries including: United states, United Kingdom, Australia, Germany, France, Mexico, turkey, Saudi Arabia, Poland, Russia, Morocco, Egypt, South Korea, China, Japan, Ukraine and more…

Minimum stake:

• solo staking: $2000 for 12 weeks
• Pool staking: $5000 for 12 weeks

How are staking rewards calculated?

Depending on whether you choose to stake as an individual or as a pool, our blockchain network makes use of industry standard practice in calculating and distributing staking rewards. Coins are rewarded on a block-by-block basis, taking into account the following factors:

• Whether you will be investing as a solo validator or as a pool
• how many coins the validator is staking
• how long the validator has locked in the stake
• how many coins are staked on the network in total
• the market inflation rate

Proof of Stake and staking opens up more avenues for anyone wishing to participate in the consensus and governance of blockchains. What’s more, it’s an utterly easy way to earn passive income by simply holding coins. As it’s getting increasingly easy to stake, the barriers of entry to the blockchain ecosystem are getting lower.

So whether you’re new to the crypto space or maybe you’re a veteran trader looking to boost your supply of coins, coin staking is a great investment option anyone can participate in.

COIN STAKING