Steemit Crypto Academy | Season3:Week1||staking by @imagen

Hello crypto lovers,

It's good to be back for season 3. I am glad to be among participants of the dynamic classes. Special thanks to @imagen for the wonderful lecture. Below is my Assignment.

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1. Research and choose 2platforms where you can do staking. Explain them, compare them and indicate which one is more profitable according to your opinion. ( Binance is not allowed)

After making my research, i have decided to talk about coinbase and kucoin

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Source

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COINBASE

is a cryptocurrency exchange that enables you buy and trade bitcoin, ethereum, litecoin, and approximately 50 other cryptocurrencies. Coinbase may be used to convert one cryptocurrency to another, as well as to transfer and receive cryptocurrency between people.Coinbase, like other stock trading apps, displays the current cryptocurrency price and trends, as well as a portfolio of assets and industry news. Coinbase also offers cryptocurrency investing, an advanced trading platform, custodial accounts for institutions, a wallet for regular investors, and its own U.S. dollar stable-coin.

BRIEF HISTORY

Coinbase, created in June 2012 by Brian Armstrong and Fred Ehrsam, was the largest cryptocurrency exchange in the United States by trading volume as of March 2021.Ben Reeves, a British programmer and co-founder of Blockchain.info, was meant to be part of the Coinbase founding team, but he split with Armstrong right before the Y Combinator financing event, over their differing views on how the Coinbase wallet should work. It is a fully regulated and approved cryptocurrency exchange that accepts customers from every state in the United States except Hawaii. Coinbase began by only allowing Bitcoin trading, but soon expanded to include other cryptocurrencies that met its decentralized criteria.

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KUCOIN

This is the very first Exchange Staking system.
It allows users to stake various cryptocurrency assets without having to lock them. The adoption of the Soft Staking method allows for this.

What is Soft Staking, and how does it work?
It is a method by which users can earn staking rewards without having to lock their cryptocurrency assets.
KuCoin was the first to pioneer the concept of Soft Staking in 2019.Staking in this manner pays consumers on a daily basis. As a result, compounding and portfolio management can be more flexible and efficient.

BRIEF HISTORY

Despite the fact that KuCoin was founded in 2017, its founding team has been working with blockchain since 2011. The exchange's technical architecture was developed in 2013, but the platform was fine-tuned over the years until its 2017 launch. Michael Gan and Eric Don, KuCoin's founders, are part of an eight-person executive team.

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COMPARISON BETWEEN COINBASE AND KUCOIN

COINBASE	KUCOIN
Coinbase is a company located in the United States (US) that was founded in 2012 with the sole purpose of providing crypto exchange services to US traders	KuCoin is a Singapore-based cryptocurrency exchange that was founded in 2017.
Coinbase has a classic staking system in place, in which customers are obliged to hold crypto assets for a defined length of time before being paid.	KuCoin uses a soft-staking system that allows users to stake coins without locking them in. Users can participate in staking without locking in their crypto assets and collect staking incentives on a regular basis because of its soft staking method, which was launched in 2019.
Coinbase accepts about 50 different currencies.	KuCoin has historically supported a larger number of coins than Coinbase. Over 200 coins are supported by KuCoin.As a result, KuCoin offers more alternatives to users than Coinbase, making it a superior choice for staking.
Very High transaction fee.	In comparison to Coinbase, KuCoin has a more transparent and lower transaction fee.

SIMILARITIES

• Two cryptocurrency exchanges that accept cryptocurrency staking are KuCoin and CoinBase.
• Both Coinbase and KuCoin use a proof-of-stake consensus process, which allows traders to stake their cryptocurrencies in exchange for ownership of certain blocks on the blockchain.

MY VERDICT

From my research,i will say Kucoin is preferred over Coinbase for cryptocurrency trading because;

• it has lower transaction costs
• a more innovative staking method, and
• a wider range of crypto assets to trade

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2 . What is impermanent loss?

Impermanent loss refers to the temporary loss of funds that liquidity providers may face as a result of volatility in a trading pair. This also shows how much more money someone would have if they had simply kept their assets rather than giving liquidity.

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3 . What is Delegated Proof of Stake (DPos)?

Delegated proof of stake (DPoS) is a blockchain verification and consensus mechanism. As a method of verifying transactions and promoting blockchain organization, it competes with other proof of work and proof of stake models.
Stakeholders in a delegated proof of stake system build consensus based on the amount of money they have invested in the cryptocurrency system.

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HOW DOES IT WORK?

Delegates are responsible for ensuring that their nodes are constantly up and running, gathering transactions and constructing them into blocks to validate them, and addressing any network consensus difficulties that may emerge.
Delegates are in charge of proportionally dispersing the block rewards they earn to their voters based on voting power.

Delegates are not required to have a big stake in the network, unlike traditional proof of stake, but they must compete for token holders' votes.

By limiting who is authorized to validate blocks of transactions, DPoS systems forfeit some decentralization, but gain efficiency since less work is necessary to attain network consensus.

4 . CONCLUSION

For crypto investors, staking has become a popular way to earn "interest income" on their digital asset holdings. Participants that stake their coins earn a piece of the block reward in the form of newly created coins in exchange for helping to secure the network.

Impermanent Loss: Due to the fact that it is a common occurrence in DeFi. As a result, it's best to stay away from volatile coins and focus on the Stablecoins pair.

DPoS: This is a one-of-a-kind method for reaching consensus in a decentralized ecosystem, which is crucial for a decentralized cryptocurrency network.

cc;
@imagen