The massive popularity of decentralized finance solutions opened a new realm of possibilities in which anyone, anywhere in the world is able to easily gain a blockchain-based source of passive income 💸. Many people consider DeFi to be the next step in the evolution of blockchain technology. But what exactly is so profitable about DeFi, and how can Elrond Network help you improve your decentralized finance earnings?
What Is Staking? 🤔
Staking is by far the most popular way of receiving money in the DeFi ecosystem.
Originally, the only way to profit from traditional cryptocurrencies like Bitcoin or Ethereum was mining crypto. However, mining is not for everyone: it requires a massive energy consumption, expensive dedicated hardware called “mining rigs”, and a lot of technical knowledge.
Staking allows you to gain a source of blockchain-based income comparable to mining, but without any of the requirements of mining. Simply put, delegating to a staking pool is like mining but it doesn’t require any hardware for the delegator, it doesn’t have a high energy cost, and it’s really easy to do.
How Does Staking Work? 🛠
The word “staking” simply means sending a certain amount of funds to a certain address of a smart contract, and keeping your funds there for a period of time.
As long as you keep your funds locked and don’t move them, you are eligible to earn rewards. However, you are still in total control of your tokens: you can withdraw them anytime you want.
When you withdraw your funds you stop staking, which means that from that moment you won’t be able to get any more interest – but you will keep anything that you’ve received until that point.
The Benefits of Staking 📈
Compared to crypto mining, which is costly and complicated, staking is much easier and more efficient. The advantages of staking cause many people to resign from mining, and meanwhile staking is becoming more and more popular.
The main reason for the immense popularity of crypto staking is how easy it is to profit from it. All you have to do is send some funds to a smart contract and keep the funds locked there for as long as you want. No further action on your part is needed, as you can simply sit back and enjoy your new source of blockchain-based passive income.
Staking is considered a very safe way of profiting from blockchain technology. Unlike risky methods of earning crypto income such as trading, staking doesn’t include a significant risk. Funds that you keep locked while staking remain protected by advanced cryptographic algorithms securing the blockchain, and it’s practically impossible for anyone to steal them.
Traditional fiat currency systems are very inefficient and costly to maintain, so they don’t allow people to earn a lot. Keeping money on your bank’s savings account will earn you almost nothing. Decentralized technologies are very cost-efficient, so the rate of interest you will be able to receive is higher.
How Can You Benefit From Staking? 🔍
Staking doesn’t require you to have any technical knowledge, and you don’t have to make a significant initial investment either. All it takes to start receiving rewards as a passive income from staking are some cryptocurrency coins like EGLD.
Not all cryptocurrencies support staking. For example, Bitcoin (BTC) doesn’t include the staking feature.
When it comes to the digital assets which enable staking, not all of them are equally profitable. If you want to assure the highest possible rate of income, it’s essential to pick the most innovative DeFi assets that you can stake.
Staking With Elrond Network 🔝
Elrond Network is a next-generation blockchain platform providing the highest grade of decentralized services tailor-fit to suit the needs of the most demanding distributed apps and other enterprise use cases.
Elrond Network is powered by a dedicated digital asset called Elrond eGold (EGLD). EGLD is an asset, which enables you to benefit from staking while enjoying many advantages exclusive to Elrond Network:
Massive scalability 💎
Scalability is the main focus of the Elrond Network infrastructure. Most of the traditional blockchain networks were not designed with DeFi in mind, and the high volume typical of decentralized finance solutions can easily overburden those networks. Unlike outdated blockchains, Elrond Network guarantees superb scalability – you can be sure that you will be able to keep profiting from staking at any time.
Speed & security 🏇🔗
With Adaptive State Sharding Elrond brings a 1000x improvement in throughput compared to previous blockchain iterations. It enables parallel transaction processing. Elrond Network is dedicated to the convenience and safety of users’ funds. Start staking within seconds, withdraw your funds at any time. Rest assured knowing that your funds are protected by military-grade security algorithms 24/7.
Flexibility & productivity 🤸🏻👨🏼💻
Elrond Network is dedicated to the core idea of DeFi: allowing anyone, anywhere in the world, to easily regain total control over their finances.
Current Stage of Development ⏳
Elrond Network launched in 2018, and for the past few years, the Elrond team worked intensely to develop Elrond into the most ambitious and innovative blockchain platform in the world.
In 2020, Elrond was one of the first blockchain projects to fully adapt the DeFi vision of empowering anyone, anywhere in the world with easy access to decentralized finance solutions.
Currently, the main focus of Elrond is adding new features enhancing the DeFi functionality of the platform. Staking enables you to easily earn passive income with Elrond.
New DeFi 2.0 features of Elrond will include:
- ESDT Stable-coins
- Maiar Exchange
- Elrond NFT Standard
- Elrond Launchpad
- Elrond Swap
- Elrond Lending
- Elrond Bridges
- Elrond Synthetics
Elrond is moving forward very fast. 🚀
The development of the network is very exciting, opening up new possibilities such as participating in the network by delegating EGLD to a Staking Provider.
If you want to learn more about how you can start receiving rewards for your coins by staking on Elrond Network, visit our homepage. 🌐