There are many blockchains out there that are supporting cryptocurrency of various sorts. Some are real currencies waiting for their big launch and others are completely developed ones where people are benefiting greatly while trading and staking. Most experts believe that blockchains offering staking opportunities are better than the other ones as it keeps all the stakeholders engaged. Here are the reasons why Staking Blockchain will perform better than the other blockchains in 2021.
Delegates Voting System
DPOS technology allows stakeholders to vote for the delegates who have the ability to mine and validate transactions. In technical terms, Delegated Proof of Stake (PoS) aims to reach consensus in the Blockchain. It uses a democratic selection process to decide which node will be the validator of the subsequent block. This is known as mining in Bitcoin.
Staking Blockchains are More Accessible
Proof of Stake encourages a large number of users to run network nodes as compared to the Proof of Work algorithm. This not only makes the process more decentralised, it also boosts accessibility to the community.
Staking Blockchains are More Secure
In Staking Blockchains the reliability and security of the nodes are guaranteed by the stake of the individual that is forging the particular block. If a user ends up forging an invalid block, they would be risking their stake as some of their stake would be taken as compensation.
Low staking fees
DPOS algorithm is a high democratic platform and is much better than other consensus systems because it is more efficient, secure and cost-effective. It does not require very high computational power as the mining opportunity depends on the number of votes for the miners from stakeholders. This enables low staking fees and cost-effective trading.
Real-Time transaction and staking rewards
Staking Blockchain offers stakeholders real-time transactions and micro transactions. The staking rewards are also great and are given to members who freeze their cryptos in a staking contract for a certain duration. They will receive a reward on a certain percentage of the staked amount. This makes staking blockchains better than other proof of work blockchains out there.
High Transaction Volume
Staking blockchains have the ability to process high transactions volumes in less time due to their unique structure. Since there are specific people mining and you don’t need supercomputers to win the race of validating transactions and solving super complex computations, the staking blockchains offer high transaction volumes. This process is also very fast as compared to proof of work blockchains.
This makes the blockchain more reliable and secure as all the stakeholders work together to make the blockchain successful.
These were the reasons why we consider the Staking Blockchains better than proof of work blockchains. With Tesla’s Elon Musk and Twitter’s Jack Dorsey investing heavily in Bitcoin, we will see a gradual shift of investors towards blockchain technology and cryptocurrencies. This is why it is important to consider the blockchains you are investing in. Staking blockchains such as DDKoin are great as they use DPOS technology that will benefit users and keep everyone interested and involved. For more info, please visit ddkoinblockchain.com