Building a blockchain is not only software and hardware development, but also a combination of architecture design, incentive mechanism, game theory, and governance to form a powerful decentralized system. Staking (staking) is an incentive mechanism designed to enable participants in the network to move towards the same goal, such as making effective commitments to the network.
In this article, we will explore the top ten staking networks with the highest participation that will take off in 2021 (in no particular order):
Chainlink is composed of blockchain “Oracles”, which act as a bridge between on-chain data and off-chain data. Compared with the nodes of other decentralized platforms, they usually perform a wider range of tasks.
Chainlink oracle provides external data for smart contracts and gets paid through LINK tokens. At present, users must go online to their nodes to receive LINK as a reward. But in an interview with Defiant, Chainlink CEO Sergey Nazarov discussed pledged tokens as a way to combine node operation and incentive mechanisms, showing how the pledge system works in the Chainlink environment.
It is expected that LINK will be pledged on Chainlink in a decentralized manner in 2021. At the same time, you can also use Crypto.com for pledge. According to the length of time you pledge and CRO (Crypto.com platform currency), you can earn 1.5-6.5% of income by pledge LINK.
Mina greatly reduces the number of downloads required for each user to synchronize a node. Participants can use recursive zero-knowledge proofs (zk-SHARKs) to fully verify the network and transactions instead of verifying the entire chain at the beginning.
The node only needs to store the proof, not the entire chain. Mina remains accessible, anyone can access it in a trustless manner, and even use a smartphone for synchronization and rapid network verification. Ethereum is currently measured in Terrabytes and is still growing, while the entire Mina blockchain will remain around 22kb.
DFinity is a blockchain-based cloud computing project that aims to develop an open public network, that is, Internet computers. The Internet computers will allow developers to deploy and run applications through canisters (jars), which is similar to Ethereum. Smart contract. DFinity’s network runs on dedicated hardware managed by independent data centers.
It is expected that ICP staking will be realized in early 2021. Users can use Staking Facilities (equity infrastructure) to delegate their rights and interests. Staking Facilities is a credible proof-of-stake infrastructure provider and verifier that can reliably pledge your tokens And used to get rewards. And they also support other networks such as Tezos, Cosmos, Aion, SKALE, Edgeware, Kusama, Polkadot.
Regen Network is a global market and contracting platform for the earth’s ecosystem assets, services and data. It is established to verify ecological-related claims, agreements and data, so that multiple registries can communicate and interact with each other, thereby establishing a public ecological accounting system.
Regen’s registration allows land managers to sell their ecological services to sellers around the world, working to change climate change through carbon removal incentives.
Those who authorize XRN to the verifier will receive rewards for each verification block. When they unbind with the verifier, their tokens will not receive block rewards or fees for three weeks.
XRN will be a charging token after the network goes live, and it is also possible to use other whitelisted charging tokens such as ATOMs or Terra, a Cosmos-based stablecoin.
Built on Partity Substrate, and can be bridged to Ethereum, Centrifuge aims to be a gateway connecting the real world and physical assets, allowing off-chain assets to be connected to traditional finance through Defi. Tinlake is a smart contract that enables borrowers to withdraw loans based on assets such as invoices, concessions, or receipts.
In theory, anything that can be represented by non-homogeneous tokens can be financialized through Tinlake’s underlying infrastructure. Investors can stake an ERC20 token to participate in, for example, the stablecoin DAI to obtain a token to represent their share in the pool.
Radial token (RAD) is a local asset on the Centrifuge chain. RAD can give users rights in the Centrifuge network and can be used to pay transaction fees and participate in on-chain governance. It can also encourage validators and nominators to participate in the block generation and transaction verification process through block rewards.
Acala is a Parachain based on Polkadot. It aims to become a decentralized financial Hub and stablecoin platform, providing power for cross-chain liquidity and applications.
aUSD, as the stable currency of the Acala platform itself, will provide support by building blocks for Polkadot DeFi. aUSD is an over-collateralized digital currency similar to DAI, which can be used to create a collateralized debt position (CDP) by using blockchain assets connected to the Polkadot network such as DOT, BTC, and ETH to mint stablecoins.
ACA tokens have three key functions in the Acala system:
It is a local governance token that Acala users can use to pay for transaction and calculation costs.
ACA owners can also use their holding shares as network organizers or charge oracle data fees.
ACA gives holders the right to vote together with Acala to weigh core network decisions (such as fiscal expenditures, election of board members, and improvement suggestions). This voting power extends to Acala loan applications, where ACA owners can adjust the stability fee or liquidation ratio and add new types of collateral.
The Homa protocol built on the Acala network establishes a decentralized staking pool, where users can lock their DOTs to obtain staking income, while receiving L-DOTs as clearing and tradable receipts. As a pledge pool, Homa tokenizes users’ equity assets into L-assets (for example, L-DOT is used to lock DOT), and users can use L-assets to invest or use them in other applications. L-DOT has cross-chain capabilities and can be used to participate in other network activities, such as lending or as collateral for the Honzon stablecoin protocol.
Polkadot’s goal is 50% active DOT staking, with an annual return rate of 20%. You can check the best staking providers and interest rates on the website:
Persistence is a lending platform that satisfies those markets that have surplus capital (such as lenders, lenders) to those that need capital (such as borrowers, borrowers). His goal is to bring real-world assets to the blockchain in a global, instant and always available way.
In traditional financial markets, commercial documents such as invoices and transaction receipts are often used as the basis for loans. Persistance’s goal is to use the advantages of non-homogeneous tokens (NFT) to mortgage real-world assets and tokenize them through Tendermint blockchain technology, in this way to bridge decentralized finance and tradition The gap between finance.
Persistence is currently working on their Stakedrop program, which will start on October 26, 2020 and will last for 12 months. You can pledge your XPRT to Dokia Capital, Cosmostation, SG-1, Stakefish, Figment, Sikka, Iqlusion, Stakewith.us, P2P, Certus One, HashQuark.
The Crypto.com chain is part of the Cosmos network because it utilizes the Cosmos SDK and Tendermint core consensus engine. There are two types of nodes, namely validators responsible for verifying transactions and submitting new blocks to the blockchain. The full node is responsible for obtaining data and providing it to the client.
In order to incentivize validator nodes to operate, CRO rewards will be distributed according to their performance and the number of tokens pledged. When validators act dishonestly on the network, they will be heavily penalized.
CRO owners can delegate their tokens to active validators and share part of the rewards obtained by validators. This allows token holders to participate in the consensus process without running a validator.
The point is that the delegator and the validator bear the same risks and rewards. In particular, due to the misconduct of the verifier, the tokens authorized by the principal may be reduced. Therefore, it is important to choose a reliable validator for delegation. You can view the list of trusted validators here, which can be used once the CRO staking campaign starts.
The biggest change in the history of Ethereum is that it started with the Medalla public multi-client testnet. The Beacon chain launched in December and the process to the mainnet ETH2 is currently progressing smoothly. More than 3 million ETH is included in the mortgage contract, which has made it a One of the largest staking networks in this field.
ETH2 is expected to be launched in four stages. Starting from stage 0 of the PoS consensus that includes ETH2, it tracks validators and their balances, which is the current stage we are now in.
Phase 1 deals with adding, storing, and retrieving data related to ETH2’s shards. Shards distributes the load of the network to 64 new chains. This will reduce network congestion and increase the volume of transactions per second.
Phase 1.5 upgrades Ethereum from PoW to PoS by turning Ethereum into a shard in ETH2.
Phase 2 adds the execution of the remaining ETH2 shards, enabling smart contracts to run on all shards, and is expected to be in 2022. Around the final stage, the Ethereum community is also discussing and researching.
The continued transition to ETH2 will be as follows, one of the most important aspects is the connection between the main network and the beacon chain, which is expected to be completed later in 2021 or early 2022.
Staking on ETH 2.0 requires technical experts and infrastructure costs. If the pledge is improperly managed, it also needs to be significantly reduced and offline penalties. Self-staking has also brought at least 32 ETH collateral and token locks, which may last for several years.
By using the clearing self-mortgage service, users can eliminate these inconveniences and benefit from the safe, non-custodial pledge supported by industry leaders. Check out The Ultimate Guide to Staking on Eth 2.0 on Ethereum for more details on the ETH2 roadmap and staking pool.
You can also join the mortgage pool to earn mortgage rewards without having to lock up assets or maintain the mortgage infrastructure yourself.
Currently, the return of ETH2 is about 9% of APY. When 10 million ETH is deposited, the return will drop to 4.9%.
Diem is a project initiated by Facebook (previously named Libra). The project will consist of three parts:
Diem Blockchain The Diem blockchain payment system is designed to serve as the foundation of financial services and meet the daily financial needs of billions of people, thereby enabling open, instant and low-cost payments on a global scale.
Initially, the Diem payment system will only support a few digital currencies, such as ≋USD, ≋GBP and ≋EUR, which have the same value in the national currency. The Diem payment system will also support the combination of these digital currencies, ≋XDX. Over time, the Diem payment system intends to support more digital currencies.
Governance is managed by the independent Diem Association and its affiliate network.
Novi is a digital wallet that integrates Diem and facebook messenger products. It is expected to be launched in 2021.
Free Ton is a community-led project based on the team behind the messaging app Telegram to develop proposals. Free Ton was formerly known as Telegram Open Network (TON), with the POS main chain and Free Ton Crystal (TON) as its native token.
The network launch roadmap will be divided into three phases:
The first phase “Raging Bull”-the current phase, a project with an incentive beta network.
The second stage “Rumble Fish”-rewards the Beta network, and verifiers vote to determine the network configuration.
The third stage “Fight Club”-the decentralized main network, when decentralization has been fully realized.
to sum up
In 2020, Staking has changed from the field of cryptocurrency research to one of the leading forces in the industry. Several of the largest networks prove that PoS is no longer just an academic pursuit.
With the release of ETH2, a new generation of DeFi applications will be implemented in 2021. These applications can take advantage of the benefits of faster and cheaper networks, in addition to a series of improvements, including higher energy efficiency and lower The barriers to entry, stronger encryption economic incentives, and a wider range of user income generation capabilities. The purpose of staking is to make cryptocurrency more accessible to a wider range of users and investors, and we are still in the early stages of this movement.
Author: Joseph Christopherson
Source: Staking Rewards , Ostrich Blockchain