Nowadays, staking is one of the most popular ways to provide passive income. However, for its work, it is not so much the type of cryptocurrency or platform that is important, but the technology that sets the mechanism in motion. The most promising project right now is cross staking, which features allow to support sidechain scaling for public block connections using the Plasma framework involved.
The Matrix Network development company contributed all its resources to the creation of such a technology, setting the potential of this branch of staking development. Thanks to their efforts, staking providers are able to use cryptocurrencies that work on the Proof-of-Work consensus mechanism.
The principle of operation is explained by the fact that the provider freezes the tokens that are in the main chain, activating them later in the created additional branch, where the staking process is already taking place. So far, this technology is not so common among users, but its development prospects are very promising.
Important to note. Owners of crypto assets using CROSS STAKING technology can be not limited in the choice of currencies for staking, while receiving a profit twice as high as the standard one. So far, only two providers – Prime Stake and Oreol Staking – can provide their services through cross-staking, but it is expected that many will adapt this technology for their platforms in the future.
What is the Purpose of Creating Cross Staking
Cross staking is intended to be an alternative to mining, which is widely known for its low environmental friendliness. Compared to it, staking has great prospects for preserving the environment, technological development, and attracting new users to the crypto industry. In particular, this issue is relevant in those countries where mining is actively prohibited – China, Morocco, Tunisia, Algeria, Egypt, as well as many others – due to environmental damage caused.
When replacing the method of mining cryptocurrencies with staking, energy costs are minimized, while maintaining speed, security of operations, and the likelihood of a climate catastrophe is also reduced.
Speed ​​Difference
In many cases, despite the various benefits of staking, transaction speed has not been a strong point of the mechanism.
Side note. The development of cross staking technology solves the performance problem by reducing the waiting time by almost three times compared to standard blockchains with Proof-of-Stake mechanisms. This makes cross staking a perfect solution for both providers and token holders. Such a high level of efficiency is explained by the fact that the sidechain in such cases does not take part in the formation of blocks, reducing the waiting time.
The new technology is beneficial because there is no need for data encoding. The record does not need to be decoded back, the information is delivered almost instantly, and the transaction confirmation time is a fraction of a second. As a result, speed ceases to be a disadvantage of staking, attracting more and more people to this method of income.
Features of Funds Protection
For Proof-of-Work consensus mechanism blockchains, the issue of competition is of no small importance. The constant struggle for the resources provided increases the vulnerability of blocks, forcing them to rely on the support of their community. In contrast, cross staking platforms create a highly secure sidechain for all chain levels. A similar level of protection is achieved with the help of notary nodes, which are the link between the involved blockchains.
Achieving Maximum Energy Efficiency
Since the advent of cryptocurrencies, there has been a lot of discussion regarding the environmental damage caused by the industry. Not only the electricity burned during the extraction of tokens, but also the manufacture of equipment for mining consumes a significant amount of resources, contributing to the creation of greenhouse gases.
As a result, the climate is changing much faster, leading the planet to rapid global warming. So far, this problem is only growing in scale due to the increased popularity of cryptocurrencies, a significant part of which still works on the Proof-of-Work consensus mechanism.
Need to know. Statistics show that over the past three years, the Bitcoin network has quadrupled its electricity consumption for operation. In just four years, the need for electricity has increased from 29 terawatt hours in 2018 to nearly 240 terawatt hours in 2022, according to research from the University of Cambridge. Converting these numbers into consumption figures for a single country, Bitcoin alone could easily enter the top twenty in terms of electricity consumption in the world, and of the existing industries, as a percentage, it already consumes two hundredth of the energy generated.
If within only one network there is such a large consumption of resources, there is nothing to talk about other blockchains with the same mechanism of operation, where they actively participate in mining processes. It is for this reason that the crypto industry needs an urgent, high-quality alternative that does not contribute so actively to carbon emissions or resource overruns, which are already noticeably limited due to the increasing needs of humanity.
Possibilities for Adaptation
The advantage of cross staking is mainly to be applied to any of the Proof-of-Work networks – it is enough to create side chains with an improved Proof-of-Stake consensus algorithm that connects the networks with a two-way connection, allowing to stake any cryptocurrency. Despite the relatively low prevalence of the technology, the main types of currencies are already connected to the cross staking network, including:
- Bitcoin (BTC);
- BNB (BNB);
- Dash (DASH);
- Ethereum (ETH);
- Litecoin (LTE);
- Dogecoin (DOGE);
- And others
On a note. According to the results of observations, cross staking makes it possible to efficiently scale networks with a more environmentally friendly process without much difficulty. Thus, it is assumed that staking will soon surpass mining in popularity due to the greater number of advantages.
Each user, through cross-staking, will be able to expand their portfolio to include many popular coins, while receiving greater rewards.
Compliance With Current Realities
For the crypto industry, the emergence of cross staking would be only a matter of time, since the basic concept of the technology appeared six years ago. In 2016, at one of the international conferences, the possibility of staking any cryptocurrency was mentioned for the first time, but the idea did not gain popularity due to the low prevalence of other technologies besides mining.
Important information. Matrix Network, which is known as the creator of cross-staking, is working hard on its technology, making it as secure, fast, decentralized as possible. The result of painstaking work has become tangible success in promoting cross staking around the world. At the same time, the company was engaged not only in the technical component, but also discussed the issue with well-known staking providers, seeking the immediate or gradual introduction of cross staking on various platforms.
Summarizing
At present, when Bitcoin with its system is losing the relevance, cross staking technology comes to the fore, allowing each user to receive a high passive income. The benefits of cross staking take traditional staking to the next level. More and more people are switching to this type of mechanism for working with cryptocurrencies. The active implementation of cross staking is already yielding its first fruits, opening up solid prospects for professionals and beginners in the crypto industry, while maintaining the safety of the environment, data security, and the speed of information transfer between crypto market participants. if you already want to receive passive income from your crypto assets today, then just go to the website of one of the available staking providers and start earning today Prime Stake or Oreol Staking
