Passive Income with Cobo Wallet: How to Stake Zcoin (XZC)
With cryptocurrency projects evolving at an unprecedented rate, there is an increasing number of innovative ways to generate passive income. In this article, we’ll give an overview of Zcoin (XZC) value proposition and model, as well as how you can generate additional value with your XZC assets via Cobo Wallet’s staking feature.
What is Zcoin (XZC)?
Zcoin aims to enhance the privacy of crypto-users. In popular crypto like Bitcoin, external information, such as publicly announced addresses, can be used to link identities and organizations to transactions.
Bitcoin and alternative cryptocurrencies attempt to solve this issue through the use of transaction mixers or ring signatures. However, the anonymity of these solutions is limited by the block size of the cryptocurrency. This means that true privacy tends to only be for a few hundred transactions.
Hence, Zcoin developed its own zero-knowledge cryptographic proof to ensure that coins are truly untraceable with no transaction history.
You can read more about Zcoin here:
What is a Masternode?
Masternode basically adds an additional layer of security to a blockchain network running on PoS. Masternodes are similar to PoS in the way that both mechanism allows you to earn passive income. However, the difference is masternodes can only verify transactions but not create new blocks. An example of a masternode is Znode.
What consensus mechanism does Zcoin (XZC) runs on?
Zcoin network uses both POW (Proof of Work) and Proof of Stake (POS) algorithms. In addition, Zcoin runs an additional layer of security system called masternodes, which helps to verify transactions on the Zcoin blockchain. The block rewards are distributed between miners and masternode owners: 56% goes to miners, 30% goes to masternodes, and 14% goes to the developers team.
How do I earn passive income?
For PoW, if you have the required computing resources, you can join XZC mining pools like F2Pool. However, there is additional costs incurred like energy and mining devices which may not be profitable depending on the area you live in.
Alternatively, you can get rewards for hosting Znodes. However, it is technically complex and require quite a bit of resources.
*You may skip the next two paragraphs if you are only interested in the simple and passive way to grow your XZC using Cobo Wallet’s staking feature.
How much do Znodes make?
A fixed amount (30%) of the block reward (~7.5 XZC / USD$42 as of time of writing) is paid to Znodes.
Znodes are put in a queue and take turns to receive this block reward in return for hosting a Znode.
Once they are in the top 10% of the queue, there is a degree of randomness in being selected as it uses the block hash entropy to pick the winner deterministically.
Can I host a Znode?
Setting up Znode requires basic knowledge of Putty and Linux, and writing command line commands.
Pre-requisites for hosting a Znode includes:
- A machine running Linux
- 1000 ZCoins (preferably just a bit more to cover transaction fees)
- Hosted Virtual Private Server (VPS)
For more details, see:
Is there an EASIER method?
Cobo Cloud Wallet offers a custodial solution, allowing Cobo users to easily stake their XZC.
If you haven’t downloaded Cobo Wallet, you can find us on all major app stores (e.g., Play Store, App Store) or download directly from our website.
You can start earning XZC rewards with Cobo Wallet through staking with as little as 0.1 XZC, with Znode rewards paid out at 08:00 (GMT+8) every other Tuesday. The rewards are proportional to how much you put in. The more you deposit, the higher your reward. Users can expect to earn a handsome interest rate of approximately 14% per year just by staking with Cobo Wallet. You may estimate how much XZC you can expect to earn with our calculator.
How?
- Store your XZC into Cobo Cloud Wallet.
- Tap on Finance tab and choose the amount of XZC you want to stake.
- That’s it! You may withdraw anytime, but do note that rewards for the current period will be lost.
How does Cobo charge?
Cobo takes a small management fee from the Znode rewards. Holding your assets in Cobo Wallet will always be free.
About Cobo
Cobo is a company that is firmly committed to supporting blockchain development and making cryptocurrencies easy to own and use. We emphasize long-term security, reliability, and convenience. Our key products and services reflect that vision. Altogether, Cobo offers a secure mobile wallet (Cobo Wallet), high-end cold storage wallet for advanced users (Cobo Vault), and custodial services for institutional investors (Cobo Custody).
For more information about Cobo, visit https://cobo.com
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