Goodbye to mining, staking is the next big business of cryptocurrencies

Cryptocurrencies is a world in constant change that, like many others, is looking for the next big trend to continue generating digital and real value. This new trend could be the staking, the method that rewards users based on the number of cryptocurrencies with which they support the blockchain. Through proof-to-stakesome investors are already getting a annual percentage return greater than 1,000%as in the case of Titano, while generating substantial passive income.

Currently, both bitcoin and ether rely on miners to complete complex puzzles to validate transactions and create new coins. This process is known as proof-of-work and requires an enormous amount of energy. Others, like Solana or Polygon, already work with the proof-of-stake and they are getting annual returns of 5.8% and 27.18%, respectively.

Specifically, this process allows users to validate transactions based on the amount of coins they contribute or wager. The more coins you bet, the more chances of validation. This reward may include an annual percentage yield, and the exact amount depends on the blockchain technology used. In addition, the proof-to-stake It is considered the most ecological option.

Ethereum, the blockchain chain behind ether, could launch its long-awaited update soon Merge. Although the final schedule for this update is unknown, it is known that will make cryptocurrency mining obsoletebased on the proof-to-work. This process, called Beacon, allows users to stake ether to support the blockchain and earn returns of around 4% or 5%, according to David Lawant, director of research at Bitwise Asset Management. Fortune. Some industry experts predict that the rewards with Merge will range between 7% and 12%. What’s more, Coinbase already cites it as one of its main products.

However, like everything, the staking has a but The proof-to-stake essentially betting on the viability of the cryptocurrency being staked, so is subject to the volatility of those digital assets. Added to this are possible restrictions regarding how quickly a cryptocurrency can be withdrawn after gambling, certain penalties for not actively validating transactions or the minimum amounts required to wager, among other issues.

The future of crypto, according to Vitalik Buterin

Ethereum co-founder Vitalik Buterin has been very concerned about the future of the blockchain and the use of NFTs (non-fungible tokens). According to him, cryptocurrencies They weren’t created “to play with million dollar monkeysbut to do meaningful things in the real world.

Given the somewhat uncontrolled boom in non-fungible tokens, Buterin believes that many people are not taking advantage of the true potential of ether and its blockchain. In particular he refers to NFTs Bored Ape Yacht Clubthe collection of primate cartoons that has become a status symbol in the digital age and for which more than a million dollars have been paid.

In Buterin’s opinion, the potential of Ethereum should be used to change the world for the better: from fairer voting systems, to urban planning and public works projects. Specifically, he believes that the platform could serve as a counterweight to authoritarian governments and even end Silicon Valley’s dominance over the digital lives of millions of people, according to what he publishes. HD Technology.