Why does the PoS consensus mechanism cause people's attention again? Is it due to the rise of Staking? Or is PoS achieving a new breakthrough in technology?
Today, I would like to talk with you about the nature of Staking Economy, mainly from the relationship between Staking and PoS, the current situation and problems of Staking, the ecological participants of Staking and how to choose Staking service platform.
First, the relationship between Staking and PoS
Some users have asked me, if Bibox supports Staking, what is the profit? This may be the biggest concern for everyone on the Staking economy. In my opinion, the benefit is the means of Staking rather than the purpose, and Staking is also the means of PoS rather than the purpose.
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Speaking of Staking Economy, it must be inseparable from the review of PoS. Most people in the circle know that PoS is not a fresh concept. The rise of Staking and the popularity of several star projects in the past two years have made PoS impressive again.
The birth of PoS marks the blockchain entering a new stage of development. Because the first successful application of bitcoin in the blockchain is based on the PoW consensus, this consensus has made many people realize the advantages of decentralization and distribution, but at the same time realize that PoW will bring waste of resources and participate in the threshold. Higher problems.
The PoS consensus mechanism first reduces the threshold for everyone to participate in chain governance, and secondly, it can better realize value transfer and individual rights manifestation. At the same time, the most important thing is to improve consensus efficiency and save energy and protect the environment.
Let's briefly review the past and present of PoS. I think it is mainly divided into three stages:
The Bitcointalk Forum introduced PoS in 2011. It is a netizen named Quantum Mechanic. At that time, people thought that like the traditional shareholding system, there should be a shareholding system in the blockchain world. Who has more? Shareholders, whoever has the right to speak, the greater the probability of getting a bookkeeping opportunity.
Peercoin (Pegacoin) was widely used as the first project of PoS. Peercoin was launched in 2012 and has been in the top ten of the mainstream currency for the three years from 2014 to 2016. Currently, it ranks more than 300 on Coinmarketcap.
In fact, Peercoin uses a hybrid mechanism of “PoW+PoS”. It is also a normal transition to PoS. However, it is great because Peercoin's operating mechanism introduces “coin age” and “random number parameter”. Concepts such as "checkpoints".
The pure PoS project Nextcoin NXT was launched in 2013 and was randomly assigned according to the number of nodes held. But there is a problem that the cost of doing evil is low, but it is not effectively curbed, that is, the famous nothing at staking
PoS really thrives after 2017, especially after this year, EOS, Tezos, Cosmos and other star projects, the developers cited the BFT Byzantine fault tolerance mechanism and punish the evil nodes through the slash mechanism. Effectively solved the problem of nothing at staking. This has enabled PoS to thrive.
Recently, Ethereum founder Vitalik Buterin said that the efficiency of the PoS and sharding blockchain will increase by a factor of 1000 in the future; the non-financial application of the blockchain has advantages over financial applications, etc., which gives us a lot of Confidence to pay attention to PoS, and Staking.
Second, the status quo and problems of Staking
What is the current application of PoS by V God? I simply made an incomplete statistic on the current distribution of core PoS projects:
It can be seen that most of the projects currently using the PoS consensus mechanism are in public chain and financial applications, and only a small part is concerned about DApp. At present, there are more than 100 projects supporting Staking, but it accounts for less than 10% of the entire cryptocurrency market, indicating that the market potential is very huge. Some capitalists are optimistic that this year's PoS project will reach 25% of all projects, while Staking may bring in more than $2.5 billion in revenue.
However, in the era of PoS, the role of the holder and the miner coincides with the construction of the functional role of the verification node, so that the holder of the mine does not need too high computer hardware requirements, so that everyone can mine. The currency is the admission, the mining process is like the interest of the currency, the more the currency, the longer the interest, the more interest, the mode is simple and easy to understand.
At present, the average staking yield (coin standard) of major mainstream PoS projects is around 10% or even higher. This kind of income is higher than the traditional investment financial return rate, and as the bull market gradually wakes up, the price increase will bring more High value gains.
So, is Staking really a profitable business? Does it have some problems?
1. The fluctuation of the price itself
For the time being, most of the users who know Staking are somewhat contradictory. They value Staking's rate of return, and they are worried that the rewards of pledge harvest can't keep up with the decline caused by inflation or market changes.
Just as Staking is just a means rather than an end, the purpose of the PoS Consensus is to achieve chain governance with higher efficiency and lower thresholds. The most important factor in determining Staking's revenue is the project itself. High returns mean high. risk.
2. High user education costs
For ordinary users, many people don't know what Staking is. You tell him that he is similar to the concept of “saving money”. He can easily understand it as a pure fixed-income product. In fact, Staking is not a pure one. Fixed income products.
How to choose a node? How to hand the token to the node? It all takes time to educate users, and in terms of the current Staking application, this road is still very long.
3. Infrastructure needs to be improved
The good news is that Staking's eco-participants are more and more, but because of their unique characteristics and advantages, it is necessary to further establish a cooperative win-win approach to meet the different demands of Staking users. It is to build a more complete and better experience infrastructure for PoS and Staking.
Third, Staking's ecological participants
As we mentioned earlier, Staking is only a means of PoS and not a purpose. But Staking can form an economic ecology. In this ecology, everyone can be a participant, and the most core areas of participation are: nodes and holders, and derived service providers. So everyone is a participant, including mine pools, wallets, trading platforms and currency holders, and even some friends who are still holding money.
Different ecological participants play different roles and have their own advantages and advantages. Because this ecology is still a sleeping baby, when it is not yet to start fierce competition, more roles are needed to participate. We are mutually beneficial and win-win. To make the ecological development strong.
Fourth, how to choose Staking's service platform
Choosing reliable projects, stable and reliable nodes with low commissions is a compulsory course for participating in Staking guaranteed income. In fact, it is difficult for ordinary users to consciously take the initiative to obtain revenue. Even with this willingness, the technical and cognitive difficulty and challenge of selecting a project and a node, or wanting to become a verification node itself is enormous.
Therefore, I believe that choosing the high-quality Staking service platform is the best way for ordinary users to participate in the governance of the PoS consensus chain and obtain stable income from it.
So, what kind of service platform can help users better Staking, I think at least need to have the following three points:
1. Have a mature screening mechanism for PoS projects to help users choose quality projects
The selection of projects has always been the biggest pain point for ordinary users. The information is difficult to distinguish between true and false, and individual users have limited energy, so a professional team is needed to screen them. At this point, the mainstream trading platform has accumulated enough experience, and has also trained a professional project review team to help users to screen quality projects.
2. Simple, smooth and easy to operate, and users have experienced similar products
Although ordinary users are hard to understand for Staking, it is the most familiar product for every trading platform user to say that “depositing interest” and “locking bin dividends”. Take Bibox as an example, we will be on the stock in 2017. Later, the online bond was launched. It is a typical deposit. Every deposit has been snapped up. Our users have already had awareness and behavioral habits about this, and Staking is for our users. It is a matter of one-click lock.
3. In addition to Staking, the platform has a wealth of products for users to choose from.
The needs of users are diversified and change in real time. To meet these demands, the platform itself has more product choices besides Staking.
The trading platform is born with the entrance of the traffic and the place where the funds settled. There are a large amount of user funds idle. Through staking, the user can make full use of the funds to get the income, and when the user wants to sell or buy the proceeds or the principal. Entering, or playing a contract, can be completed in the first time at the exchange, eliminating the time and expense and security issues required for the currency to wait.