You have probably already heard of staking and proofof stake cryptos. This consensus method is known for its inclusive aspect. Indeed, unlike Bitcoin’s proof of work, there is no need for state-of-the-art hardware to validate transactions. All you need to do is to place funds in cryptomoney!
This is a promotional article written in collaboration with Just Mining.
However, installing your own validator node can be complex. And the minimum amount of funds to be involved can be a hindrance. So, how can you participate in the staking of your favourite crypto if you don’t have the soul of a technician nor a lot of funds? There is a simple solution: staking services. In this article, we will present the solutions proposed by Just Mining.
Reminder: what is staking?
Staking is a mechanism to validate the transactions of a distributed network. It is based on the staking of a certain amount of cryptography.
Network nodes (stakers) wishing to participate in this validation process place their funds in escrow. The protocol takes care of keeping them locked for a given period. The nodes will then carry out their work of validating the blocks. In exchange, they will be rewarded (the rules vary according to the protocols). To avoid cheating, they are financially punished for bad behaviour.
The advantage of staking and proof of stakes is its low energy cost. As the Nakamoto consensus states, it is a system of financial incentives securing a distributed network. But here, there is no need to get into a race for computing power. Nodes wishing to participate put their funds directly into play. The protocol then selects and rewards them. Of course, the rewards are proportional to the amount of cryptography involved.
Staking, a passive income in cryptography
Staking therefore makes it possible to generate a passive income in cryptography. Anyone, if he has the required funds, can in theory configure a node and participate in the consensus. However, there is an important technical barrier to entry! Indeed, not everyone who owns a cryptosystem is necessarily a developer. And all distributed networks operate according to different rules.
The minimum quantity of cryptos to be locked therefore varies according to the protocols. For example, on Ethereum 2.0, it will be 32 ETH, i.e. nearly 10,000 euros at the current rate.
Staking can therefore be seen as an investment in crypto, offering a predictable return. Attention, this interest rate is defined by the protocol, but the price of the crypto is on the other hand subject to the laws of the free market.
Interesting, isn’t it? The game obviously consists in staking on the most profitable cryptos. Thus, double-digit returns regularly appear.
Anyone who tries staking for purely speculative purposes is therefore better off using service providers. He has no technical knowledge to have, no servers to configure, no nodes to synchronise. Moreover, there is no financial minimum when you go through a staking service provider. User funds are collected in cash pools managed by the company.
Just Mining and its crypto investment services
Just Mining is a well-known company in the French crypto sphere. Its CEO is none other than youtubeur Owen Simonin, better known under the pseudonym Hasheur.
He created Just Mining in 2017. The success of the company, focused on the mining of cryptomoney, is immediate. In three years, Just Mining has shipped nearly 3,500 machines around the world, and configured more than 5,000 masternodes for its customers.
The team has grown since the company’s inception and now numbers around 20 members. All of them are passionate about cryptomoney.
The company started by offering cryptomoney mining equipment and quickly diversified. First in cloud mining, then by hosting shared masternodes.
Always with the idea of offering investment services in cryptos, Just Mining deployed staking solutions in January. The company thus offers 12 different cryptomonnages.
Staking: the cryptos offered by Just Mining
Just Mining’s offer is very varied, we can say that there is something for everyone. Several staking-based protocols are represented.
- Tezos is a well-known smart contract platform. The staking of its crypto, the XTZ, yields 5.5% to 6.2% annual interest.
- Tomochain is an ultrascalable blockchain operating on proof of stakes. TOMO’s staking interest rate is 5 to 6.5%.
- Cosmos is the blockchain network created by Jae Kwon, based on the Tendermint protocol. The native token of the „internet of blockchains“ is called ATOM and generates an annual ROI of 7 to 9%.
- Irisnet is a business-oriented service infrastructure for Cosmos. Its native token, IRIS, generates 8 to 12% annual interest.
- Matic is a scalability solution for Ethereum, based on a modified version of Plasma. MATIC’s staking pays off: 35 to 38% per year!
- Icon is a project for networking blockchains, via the Loopchain platform. Its token, the ICX, is used to pay transaction and reference fees for Icon’s DEX. Yield: 12% to 16% per year.
- Synthetix is a flagship project in decentralised finance. The SNX is deployed on Ethereum and allows the replication of numerous assets. Annual return: 28%.
- Kava is a platform interconnecting different decentralised finance protocols. Staking its native token (KAVA) yields 6 to 14% annual ROI.
- Kyber Network is a protocol for decentralised exchange of ERC-20 tokens on Ethereum. Its token, the KNC for Kyber Network Crystal, is used to pay for the operating costs of the network. Its staking yields 4% annual interest.
Just Mining also offers other more exotic cryptos:
- Wanchain (WAN), DeFi-based blockchain network (7.5 -14.5%);
- Loom and its eponymous PoS token (10 – 12%);
- MyTVchain, a private web TV platform dedicated to sports clubs. The staking of its MYTV community crypto offers a ROI of 21.84%.