Continued from Blockchain Investment -- Part II
In the last session in Acquiring Cryptocurrency, two methods were mentioned -- Direct and Reward. This session shall cover on the 3rd method -- Staking.
3. Staking On an analogue to share in stock market, one might view staking similar to scrip dividend as a mean of increasing one's holding while holding onto the assets. However, the underlying is not exactly the same. Cryptocurrency staking occurs due to the Proof of Stake (PoS) algorithm in verifying every transaction of the coins or token. PoS coins or tokens can't be mined with hardware like ASICs, GPUs, CPUs and harddisks (these are the Proof of Work, POW algorithm) making verification of the transaction can't be done by just anybody with the hardware. One need to hold a stake in the asset to participate in the verification process. The amount of reward gained upon...