Steemit Crypto Academy | Season 3: Week 1 || Staking | Homework task by @janemorane

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1.) Research and choose 2 platforms where you can do Staking, explain them, compare them and indicate which one is more profitable according to your opinion. (Binace is not allowed)

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STAKING

Staking Is a process in which a person or a user locks up his tokens on a specific project on cryptocurrency blockchain and gains Profit through rewards generated by their Tokens .This is basically similar to interest on your tokens, you provide your tokens or assets to a specific project on any of the blockchain for example etherium and than when it will generates rewards you will get profit in the form of rewards from your locked up tokens.

Now basically the staking works on the phenomena of providing interest and through taking users can get a very good amount of profit from just locking up their token on a specific blockchain.

Now the question is how our tokens that we have locked up help a project and how they generate rewards, so the tokens we Locked Up Provide security to the project and also Supports different operations held on a block chain system. 

Now I will be discussing the two Exchanges that provides staking,

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Kucoin Exchange

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Kucoin Is one of the top rank exchanges where you can Earn profit by staking. Kucoin provides a very user friendly operating system.Many users love to trade Kucoin just because it has Zero deposit fees and the trading fees is 0.1% which is very less.

At Kucoin exchange Pool-X is known as the staking part and here by registering yourself on pool-X you can easily stake coins and Earn a very great Profit.

Staking tokens/coins on Kucoin Exchange

kucoin provides a varitety of staking coins which are,Ethereum 2.0 (ETH2), Tezos (XTZ), Icon (), Algorand (), Cosmos (ATOM) etc are the various coins which kucoin exchange provides for staking.

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Kraken Exchange

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Kraken is one of the well known Exchange on which one can get profitable by staking coins, Kraken is known as one of the easiest staking exchange with a smother user usage.On kraken one can stake cryptocurrency coins and can get profitable by earning rewards through it. It provides staking opportunity for many well known staking coins/tokens.

Staking tokens/coins on Kraken Exchange

According to my research You can stake coins that give you good profit such as,
Polkadot (DOT) Yearly rewards +12% , Kusama (KSM) Yearly rewards +12%, Cardano (ADA) Yearly rewards 4-6%, Cosmos and Tezos etc are considered as great staking coins on Kraken exchange.

Among these staking coins in kraken exchange kava (KAVA) is considered as more profitable with a yearly return rewards of 20%.

Comparison between Kraken and Kucoin

• Kraken is known for its best user friendly service while kucoin has a bit difficult layout and difficult to understand system

• on kucoin you can trade or stake being anonymous but kraken does not allowed to work being anonymous.
• The trading fees of Kraken exchange is 0.26% and trading fees on kucoin is 0.05% which is less than kraken exchange and by trading on kucoin we can get more profit by trading with less trading fees.
• Looking to all the points it is clear that staking on kucoin is more profitable than staking on kraken Exchange.
  

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2.) What is Impermanent Loss?

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Impermanent loss happens when we  provide liquidity to a certain exchange like uniswap. We all know that there are decentralized exchanges.

Those exchanges we can provide liquidity to now whenever we provide liquidity to these exchanges we are required to provide the liquidity in the 50-50 ratio it means that we will have to provide the liquidity of 50 Dollars worth of BTC and $50 usdt so that is 50/50 equal and that is balanced now we can write the number but as much as we write the number like if we are providing hundred then we will have to provide the other coin 100 also and that is how we provide liquidity now where does the impermanent loss occur, when the price of BTC goes up then our 50-50 ratio is disturbed because the usdt stays the same and BTC goes up the balance is disturb now to keep that balance what the automatic exchange does is there will sell some of our BTC and that well make the balance equal now in that case we loss some of our BTC and that BTC is called impermanent loss.

One of the common example found of DPoS is steem, Steem blockchain uses the same algorithm in which users Locked Up all their steem and on the behalf of how much steem they have locked in the steem blockchain the more power they will have as a witness and also more delegated steem will increase their chances to become witness and earn more rewards by this team they have locked up in the platform.

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3.) What is Delegated Proof of Stake (DPoS)?

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Delegated proof of stake is a kind of modified or or new form of proof of stake but somehow different. delegated proof of stake works when a user which holds stake coins provide or delegate their stake coins to other nodes in the system and get the power to make decisions, for example if a user delegate more stakes than there will be voting for the witness and when that user became the witness he can now validate new blocks and add them to the system and after that the witness work for the other users who voted for being a witness. The voting power a witness contains depends upon the amount of staking coins he delegates to the nodes.

Modification in DPoS

• Delegated Proof of stake is the alternative or modified form of proof of stake.
• Delegated proof of stake has been proven as much faster in speed than the simple Proof of stake.
• Delegated Proof of stake is Also known as one of the efficient consequences algorithms among the whole blockchain and also is known as the Technical democratic form of proof of stake.
• One of the great importance of delegated proof of stake is that it consumes very less energy and due to its less energy consumption it is very reliable for all the users.

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4.) Conclusion

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DPoS is very a useful thing when it comes to getting more profit without doing nothing or unlike regular trading, DPoS provides you the best reward and also you get a chance to be a witness and validate new blocks to the system.Most people like delegated proof of stake more than proof of stake and proof of work because this is very reliable and less power consuming, and that's why more and more people are attracted towards delegated proof of stake.

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Thank you so much for your time!

With Love
@janemorane

CC: @imagen
@pelon53