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In 2017, masternodes were popular among many altcoins and seen as insurance against losses. Some commentators are saying the same thing is happening today with staking.
Binance CEO Changpeng Zhao recently retweeted a tweet comparing masternodes to staking rewards. “We are doing that masternode thing again!!” the user writes, in response to Binance announcing support for(ALGO) staking.
The tweet was recently relayed by Zhao to all his followers.
— Meat (@MeatTC_) February 21, 2020
Staking does look a lot like masternodes for exchanges, except this time they will be the ones responsible for distributing rewards. So-called ‘passive staking’ has become popular on Binance and beyond as a way to make added revenue on deposits. In effect, exchanges are able to operate multiple nodes (of which there are a limited amount of spots) which effectively run like a ‘masternode’ on the network with significant influence.
Of course, this is all dependent on the specificities of each Proof of work and proof of stake are both ways of achieving trustless and distributed consensus on the blockchain. Many... More network. However, it seems as though in Zhao’s mind, proof-of-stake rewards are much like ‘masternodes + exchanges.’
Many exchanges have realized that offering staking rewards can be incredibly lucrative. Coinbase, for example, launched the value of XTZ to steadily appreciate. The hidden caveat, however, is Coinbase also charges a hefty 25% commission fee for its service. Binance, of course, leads the pack with support for a large variety of staking services.(XTZ) staking in the past few months which has caused
In September, BeInCrypto reported that the exchange was launching a platform to support 8 different cryptocurrencies. The push towards staking has caused some analysts to call 2020 the ‘year of staking’—and exchanges are among those who have the most to gain.
In 2017, masternodes became incredibly popular as a means of insurance against the market’s We can describe volatility as how much the value of an asset changes over a given time. A volatility index... More. Today, we have staking services that offer a more decentralized, fairer alternative to a similar concept. However, if exchanges continue to be overrepresented in this sector, then we could see staking rewards become simply like having a piece of an exchange’s A masternode is a series of servers or validator that sustain a network. They are used to complete transactions that... More for better or for worse.
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