We are excited to announce that we are now live as a validator on the Cosmos Network. You can now earn passive income by staking your Atoms with us through our reliable infrastructure.
We are honored to be a part of the genesis block of validators for the Cosmos mainnet, which officially went live on March 13th, joining this innovative project early-on in its inception.
What is Proof of Staking coins?
Proof of staking (PoS) is a consensus algorithm for some cryptocurrencies. When new blocks are added to a PoS network, they must be validated by a person who is already staking coins in that network. A person is only able to create a number of blocks that is equal in proportion to the amount of coins they have staked in the network. The more coins a person stakes, the higher their power and ability to create blocks on the blockchain.
Proof of Work vs the Proof of Stake process
In Proof of Work (PoW) networks, like Bitcoin, transactions are validated by the mining node that is first to solve a complex algorithm. In order to be a miner on a PoW network, a person must have extremely powerful hardware able to process and solve the algorithm. People holding Bitcoins have no control in which miner gets to create a block.
In PoS networks, like Cosmos, the miner of the next block (referred to as validators by Cosmos) is chosen randomly from a pool of holders of the network's coin. A miner can be added to the pool by staking a certain amount of coins into a bound wallet. The minimum amount of coins that must be staked in order to become a miner is determined by the network.
The miner's chances to create a new block is equal to the percentage of coins staked. Using Cosmos' Network as an example, if the number of Atoms staked is 5% of the total coins staked on the network (the total supply of Atoms can be higher), the validator node can mine up to 5% of the new blocks.
Some PoS networks, like Cosmos, are call Delegated Proof of Stake (DPoS) networks, as they allow holders of coins to trust miners by delegating (or bounding) their coins with them. This allows the miner to have a higher amount of coins available to him, further increasing their chances to create new blocks. If the majority of the benefits, usually commission, goes to the holder delegating the coins, the miner usually takes a fee.
In PoW networks, the risk comes from having to use a large amount of electricity trying to solve the algorithm for a new block, then not winning the mining race in the end. In PoS or DPoS networks, the risk comes from slashing, where the miner can lose staked coins if he does not follow a protocol that meets the conditions set by the network. This creates a strong incentive for the miner to be running a dedicated infrastructure to support the network.
What is Cosmos?
Cosmos aims to become an “internet of blockchains” that will solve scaling and interoperability issues within and between blockchains.
Cosmos networks together different kinds of blockchains by leveraging the advantages of Tendermint and the Inter-Blockchain Communication protocol (IBC). Projects built into the Cosmos Network are able to exchange coins between each other natively.
We believe Cosmos will be a key part in the future scaling of not just the Bitcoin network, but to the entire crypto finance infrastructure that will bring it to a level where it can sustain mass adoption.
A detailed understanding of the value proposition of Cosmos is available here.
The benefits of staking your Atoms with us
There are many valuable reasons to choose us as your atom staking validator for the Cosmos Network:
- Earn passive income without the need to invest in costly mining equipment.
- Invest your resources with a reliable company for a higher validation pool, and therefore more opportunities to earn income.
- We offer a highly reliable infrastructure, currently with 100% uptime, eliminating the worry of missed blocks.
- The value of your staked Atoms does not depreciate over time.
- Although it's important to note fluctuations in the market price do affect the value of the stake.
- Proof of Stake (PoS) blockchains are more environmentally friendly and energy efficient than Proof of Work (PoW) mining projects.
- You don’t need to have a high technical understanding of blockchains, crypto, or the Cosmos Network in order to participate in our staking services.
- Once trading of Atoms becomes publicly available, you will be able to easily exchange your earnings with CHF or EUR.
Learn more and stake your Atoms
If you're ready to stake your Atoms with us, contact our support team via the chat bubble found at the bottom right-hand corner of your screen when visiting bity.com to get started.