Hey Binancians, thanks for checking out the latest installment in our Education 101 Series. If you missed our previous articles, check them all out here in Your Guide to Crypto Literacy.
Stake your assets, take rewards. It’s that easy!
Curious about where those rewards come from? Read on to learn what staking is, where those rewards come from, and how easy it is to earn with Binance.US.
What is Staking?
In the context of blockchain and distributed ledger technology, “staking” is an alternative to the mining process that allows people to earn rewards by holding digital assets in an account to help validate transactions and secure the network.
Rather than using mining rigs to contribute “work” in the form of computer processing power, staking allows people to simply contribute or “stake” their digital assets.
Where consensus algorithms that use mining generate proof-of-work, blockchains that use staking use consensus algorithms that generate proof-of-stake.
What About the Rewards?
The rewards provided to node operators for doing things like mining and staking include transaction fees paid by individuals who want their transactions included on the ledger and a predefined amount of new assets minted by the network.
In other words, processes like mining and staking are how new Bitcoin, Ether, and other digital assets get created.
While staking does require a certain degree of technical ability, as does mining, staking platforms like ours help by taking those technical difficulties out of the equation. Just deposit your assets and we’ll take care of the rest!
Ready to Start Staking?
Once your account is funded, head to our Staking page to buy VET, XTZ, ATOM, or ALGO and you’re ready to go: stake VET, XTZ, ATOM, or ALGO now - and take your rewards later!
Follow along as we add to our Binance.US Education 101 Series: Your Guide to Crypto Literacy
#1 Demystifying Digital Dollars
#2 Evolution of the Internet
#3 Finance, Rhymes with …
#4 Back that Asset Class Up
#5 What are Cryptocurrencies?
#6 Defining Decentralized Finance
#7 Cryptoeconomics Explained
#8 Intro to Consensus Algorithms
Ready to learn more?
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