Staking Pools — How They Work

Staking Series (5 part series — PART 2)

Katalyse.io
Mar 8, 2018 · 3 min read

BTC, the first generation of cryptocurrency, brought the necessary change in our world. It is the first decentralized blockchain product. However, it failed to solve the energy consumption issue or consider the impact they will make on the environment because they required Proof of Work (POW).

With the cryptocurrency world growing, it is now common to see Proof of Stake(POS) coins. They don’t require energy consumption to verify transaction. On top of that, you can make a lot of profit by staking the POS coins.

Staking Pools

Staking Pools — How they work

Let’s take an example.

Person A: He is a staking wallet with 1000 ADA coins. He doesn’t want to stake his coins and just want to do it solo. Now, when a block needs to be mined, the blockchain tries to find the most suited staking wallet to do it. In this case, there are slim chances that Person A wallet will be chosen to validate the block.

Person B: Person B understand staking pool. He takes part in the staking pool by contributing the number of his coins into it. As the staking pool value is way higher compared to other wallets/pool, there are high chances that it will be rewarded for resolving a pool. For example, the pool has more than 1 million ADA. This makes the pool at higher chances of being chosen for block verification.

By taking part in staking pool, Person B has a higher chance of earning more profit. The reward is divided among the pool participant. The pool service might take some percentage of the reward as service charges.

Should you go for a Staking Pool?

Where to join staking pools?

You can also try out StakeUnited.com which offers to stake for popular staking coins such as XP, Dash, and others.

FundYourselfNow is also offering Staking Program where all the FYN holders can enjoy 15% or more staking bonus every quarter end.

You can also read our guide on how to make money through staking which also lists the best staking coins out there. Also, don’t forget to comment on what do you think about staking pools. We are listening.

Staking Series (5 part series — PART 1): Earning Crypto without a Powerful Mining Rig

Keen to find out more about FundYourselfNow? Join our crowdfunding revolution conversation on our Telegram group, or follow us on Twitter.

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