A new announcement has appeared in the official Binance blog – this time the exchange is launching a service for coin staking. It will allow users to profit from a deposit of cryptocurrencies on the platform, without having to create their own node. They also do not need to worry about the time or amount of the deposit. Currently Binance Staking supports 8 projects: Stratis, Algorand, Vechain, Stellar, QTUM, Komodo, NEO and Ontology.
Was this a good idea? Staking is possible in cryptocurrencies, which are based on the (PoS) Proof-of-Stake algorithm. Such a system functions a little differently than the Proof-of-Work algorithm, which is used in Bitcoin and some popular altcoins. Hosts in PoS cryptocurrency are validators that add new blocks to the blockchain. Most often, validators are selected based on the number of coins that they keep in their wallet as a guarantee of work.
Investors receive income from staking in the percentage form of the coins number invested by them. The level of income depends on each project, more about it can be found on the official page of the platform. On October 1, the rules for each participant in the staking programs will be updated. From this day, the corresponding balance of users will be registered several times a day at random.
Changpeng Zhao, the head of Binance, has posted an announcement about the new service on his Twitter page, inviting users to try out staking as quickly as possible. In the comments on his tweet, many subscribers expressed approval for Binance Staking, but there were also some critics in comments.