Sportcash One’s SCOneX Solution — Staking — DeFi
Why Sportcash One and the SCOneX Token is interested in future “staking” offerings.
First, what is “staking?”
Blockchain protocols can provide participants additional cryptocurrency on their holdings via contributions to the corresponding network. Staking is the process of actively participating in transaction validation on a proof-of-stake (PoS) blockchain. PoS blockchains afford anyone with a minimum-required balance of a specific cryptocurrency the ability to validate transactions and earn staking rewards. At its core, staking, is the financial performance of locking cryptocurrencies for rewards.
In crypto, staking aligns incentives to provide rewards while simultaneously providing a voting stake in a project’s future direction. Gamified incentives within a democratic and decentralized distribution affords positive passive financial gains in the short term while mitigating risk of negative consequences in the long-term.
How does staking work?
A cryptocurrency holder achieves the minimum required balance whereby a corresponding node deposits the corresponding amount of cryptocurrency into the network.
The larger the stake the greater the chance of the corresponding nodes capacity to be chosen to generate the next block.
A node’s successful block creation leads to rewards for the validators.
Where is Staking Possible?
Staking occurs primarily on Exchanges such as Binance, Coinbase, and Decentralized Exchanges called DEXes or in Cold/Private Wallets such as Ledger, Trust Wallet, and possibly coming soon the Sportcash One wallet.
SAAS or Staking-as-a-service is crypto’s improvement on interest bearing accounts. See the following comparison between Banks Deposits vs. Crypto Staking:
Bank Deposit: 0.1–1% interest in USD vs. Crypto Staking: 12–15% interest in USD
BD: Your bank controls your money vs CS: User maintains total control of their crypto
BD: Require invasive privacy checks and documentation vs. CS: Total anonymity. No documentation needed.
BD: Expensive withdrawal penalties vs. CS: Partial or total withdrawal with full amount plus accrued interest
Bank Deposits: Fixed monthly interest payments vs. CS: Interest paid daily
The Future of Crypto Staking
Proof-of-stake (PoS) represents a remarkable improvement over proof-of-work (PoW) mining in crypto for example. As such at Sportcash One we’re strongly considering bringing you staking options on your SCOneX holdings. Watch this space.