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mercoledì 22 dicembre 2021

How does staking work on the Takamaka blockchain?

While Proof of Work systems rely on mining to add new blocks to the blockchain, Proof of Stake networks produce and validate new blocks through a process called “staking”.

Blockchains based on a Proof of Stake algorithm usually employ their own particular staking currency. Some networks, such as Takamaka, adopt a two-token system where rewards are distributed using the secondary token.


Not to mention that in most Proof of Stake networks, validators freeze their coins in order to be randomly selected by the protocol at specific intervals, and thus creating a new block. The stake itself is what encourages validators to keep the network safe: if they didn’t, their funds would be at risk.

Takamaka, unlike other Proof of Stake, rather than freezing your coins for an entire EPOCH, developed a new PoS mechanism.

Hold coins, earn passive income

Staking allows users to earn rewards from the cryptocurrencies they own. This system also gives the opportunity to become an active member of the Takamaka blockchain. However, in order to take part in the staking process, users must prove they own at least 200 TKGs to stake on a node at the 8,000th block, corresponding to about 1/3 of an EPOCH.

https://www.linkedin.com/pulse/how-does-staking-work-takamaka-blockchain-/?published=t