Steemit Crypto Academy Contest / S8W6 - STEEM Staking

Steemit Crypto Academy Contest

S8W6 - STEEM Staking

Introduction

Made on Draw.io

Hello, my name is '정주부(Jeong Jubu)'
and I am active in the Korean community.
I am currently working as a blockchain PM.
I joined @crypto-academy for the first time
because I'm interested in this topic.

Our team H4 currently preparing a dashboard
which contains staking statistics and
delegating service on Steemit.
(Cooking HHHH...)
Hope to see you in the near future!

1. That’s’ S-T-A-K-E, not S-T-E-A-K

Source : Sec.gov

Staking is often confused with steak (grilled meat)
Even the U.S. SEC made a video about the confusion.
Staking is a method utilized in cryptocurrencies of Proof of Stake.

Source : Freepik

Proof of Stake is a way to get permission
to create blocks based on the amount of cryptocurrency you own.
If POW(Proof of Work) in Bitcoin is mining with computing power to get cryptocurrency, Ethereum, the representative of POS(Proof of Stake), requires you to lock 32 Ethereum on the blockchain and obtain Validator permission to create a block. This act of entrusting your cryptocurrency to the blockchain network is called 'staking'.

Source : Freepik

So what are Pros and Cons of staking?

On the plus side, you can expect the price of the coin to increase due to a decrease in circulating supply, as there is a fixed amount of coins that cannot be easily sold on the market. It also increases the safety and security of the blockchain by increasing the power of validators.
The downside is that whales holding lots of coins can become more influential, and the process and time required to unstake makes it difficult to sell your stake when you want to.

To summarize, it's a decentralized financial transaction where you deposit coins and earn interest.

2. Steem Staking? "Steem Power"

Source : Medium

Of course, Steem can be staked. We call it SteemPower (SP)
locked to the Steem blockchain when converted from Steem.
It takes four weeks to unstake it, and it's recognized as influence on the Steem blockchain.

Source : Freepik

There's one more concept that comes with Steem. It's called Delegate.
As a DPOS(Delegated Proof of Stake), the user stakes Steem to SteemPower and then delegates the power to create blocks to witnesses.

https://steemitwallet.com/~witnesses
Here we can elect witnesses, which are the validators who contribute to the block generation.

While this increases speed by reducing the number of consensus validators to a small number, it also increases the influence of a small number of witnesses, which can lead to collusion. There's also the issue of sacrificing decentralization for speed.

3. CEX vs Steemit? (Anual revenue)

In terms of earnings, it's better to use your personal wallet and stake it on Steemit.

Source : Binance Earn

If you stake it on exchanges, you'll get only get 4.59% APR

but if you stake it on SP, you'll get 2.85% APR, which is more efficient because you can earn close to 20% APY by delegating it to voting services (@UPVU, @Nixiee, @Tipu, @AVLE, @UPEX) and writing. You can also earn additional rewards in TRX.

Source : H4 Dashboard (Preparing)

I will provide transparency on the annualized yields of rental services in the H4 dashboard our team preparing.

4. Steemit = Diary = Passive income

Source : Freepik

I'm writing the small things in my life.
It's nothing fancy, but I want my son to be able to look back
and smile at the simple things I do now in the future.

And I'll continue to power up the Steem received as an author reward,
to increase my passive Incomes.

Thank you for read this post and I wish happiness always come to you