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1. What is the pledge economy?
Recently, a term "staking economy" has become popular in the currency circle, which translates to staking economy.
This should be another new term that emerged after the "token economy" last year. Compared with the token economy, the pledge economy actually has a much greater relationship with the interests of our ordinary investors.
So today I will share with you what is the pledge economy and how investment is it?
The pledge economy is essentially a kind of mining, but it is different from what we usually call Bitcoin mining and Ethereum mining.
Bitcoin, Litecoin, Ethereum, BCH and other digital currencies are all digital currencies based on Proof of Work (POW). Therefore, under this mechanism, new currencies are generated by competing computing power, so there are various Mining machine. The most popular and the highest market share is Bitmain's mining machine.
When we want to participate in the mining of these digital currencies, we usually go to the market to buy mining machines, and then find a computer room or host the mining machines to large mining farms for operation. The coins mined by the miners every day, excluding electricity and operating expenses, are left as net income.
"Staking" is another way of mining. Usually digital currencies based on Proof of Stake (POS) and Proxy Proof of Stake (DPOS) use this method of mining.
In this mining method, the nodes in the blockchain system do not need too much computing power, but only need to pledge a certain amount of tokens. After running for a period of time, new currency can be generated, and the new currency generated is The income obtained through pledge.
This is equivalent to depositing money in the bank and earning a certain amount of interest every year.
2. What are the currencies that support the pledge economy?
Last year, the EOS mainnet was launched, and the main node voting officially kicked off the prelude to staking.
And it is 2019 this year that really makes this way hotter. Since the beginning of this year, a series of digital currencies mined by pledge have been launched. On the one hand, the project party conducts extensive publicity in order to recruit nodes, and other powerful operators are also willing to cooperate with the project party as a node to obtain stable income.
Therefore, the pledge economy quickly heated up inside and outside the circle.
So which digital currencies currently support this method of earning interest?
There is a very good website: https://stakingrewards.com/, which lists the mainstream currencies that currently support the staking economy and the annualized rate of return (Staking Yield) of each currency.
3. Is the pledge economy worth investing in? And how to participate?
So is the pledge economy worth investing in? I think it is worth it, but we must find a currency with a reliable project background and a strong team. And for long-term investors, choosing a long-term pledge of a project to obtain stable income is a very suitable investment method for our investment philosophy.
So for our investors, how should we participate in the pledge economy to gain benefits?
Generally speaking, each digital currency project party that mines through POS or DPOS will launch its own official wallet for investors to pledge and node delegation. But relatively speaking, the operation on the official wallet is not necessarily convenient.
Now many tool wallets have also launched node pledge services, such as Imtoken, Wetez, Cobo, etc. You can put your own coins in these wallets and then delegate nodes.
So is the pledge method safe?
The ownership of digital currency is determined by the private key. At any time, as long as the private key is not leaked, the coin is safe. If the pledge only delegates the rights and interests to the node, and does not need to give the private key to the node, there is no need to worry too much about the security of the coin. If the pledge is to hand over your own currency to a third party for custody, the security will definitely be compromised.
Generally speaking, the pledge operation has the following two situations:
One is to pledge through official wallets, or decentralized wallets such as Wetez and Imtoken. So, this is just to make the currency an on-chain delegation at the equity level. During this process, the private key will not be leaked, so your coins are still safe.
Another situation is to put coins in a centralized wallet or mining pool, such as Huobi Mining Pool. This kind of centralized method is equivalent to temporarily depositing your coins to the other party for safekeeping. Therefore, in this case, if the other party has a problem, your coins may be lost, so try to find credibility at this time. Good big organization.
