Is Staking the new Mining?

Mining as many know is the act of excavating solid minerals from the earth crust or this was the sole definition before cryptocurrency or let's say bitcoin came into existence.

The existence of bitcoin brought many changes and also gave other meanings to words we where familiar with then. An example of such a word is mining.

The term mining as it relates to cryptocurrency is the verification of transactions that takes place in the blockchain by solving complex mathematical problems. This is carried out with the aid of computers and the user who solves this first been rewarded as you would when you strike a solid mineral on the earth crust.

This was/is said to be profitable but the requirements to operate a cryptocurrency mining machine is increasing day after day with no assurance of you been the first to solve the mathematical problem as mentioned above. To increase the odds of cryptocurrency mining, group of individuals have to come together, bring their different resources to better their chances of being the first.

This was said to be one of the best ways to earn cryptocurrency that does not involve you trading between alt-coins with the aim of making profits.

Well this was until the term staking came into existence.

Binance.vision defines the word staking to be

Staking is the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network. Essentially, it consists of locking cryptocurrencies to receive rewards. Source

What this mean is that, users no longer have to trade or fill different form in other acquire rewards from a certain blockchain, holding certain amount of that coin and locking it up for a period of time will instantly generate interest for that user.

Although, not all cryptocurrency supports this feature and those who actually support it ends up coming with low APR thereby creating the mindset that it is not worth it locking your coin for a long/short period of time.

That said, with the introduction of staking, many took it upon themselves to give back a reasonable amount to the holders that do decide to trust/lock their coins.

One of such is Newpool under the EOS chain.

At the moment of writing this article, they are giving 12.9% APR to users who stake their funds under the Newpool network.

To make staking more interesting, users are not required to export their funds, log into any platform with their master or public keys, or perform any transaction that may put their funds at risk.

This actually acts as a secondary security to your fund as any user who might gain access to your account say in the future will find it difficult to instantly withdraw your funds due to the wait period required for withdrawal to be process thereby keeping your funds safe and also alerting you of any changes to your account.

Taking a closer look, this is somewhat similar to what we have here on the steem blockchain, what we call powerup, we stake steem and it changes to steempower which then generates reward for us when we upvote ourselves or other users.

Unlike the steem blockchain, staking EOS under Newpool network instantly starts generating reward for us with no need of checking back casually.

Getting started,

• Download TokenPocket

• Import your EOS account or create one of you are yet to.

• Hold certain amount of EOS

• Click on discover and scroll down to Investment section

You will be presented with different pools, but Newpool gives the highest APR in EOS as you can see from the screenshot shown below.

Click on Newpool and follow the onscreen instructions to get started.

The next page shows the different blockchains you can stake, click on EOS

You can easily see the daily returns you will be giving if you do decide to stake your EOS

Goodluck and have fun and I hope 2020 bring more opportunities like the above for us.

Disclaimer!

This is not financial advice, nor a guarantee or promise in regards to any result that may be obtained from using the above content. The information provided here is for informational and entertainment purposes only.