What is staking?
It is important to mention off the bat that staking means a few different things in the Decentralized Finance and Web3 spaces. This article will break down the term in its broadest form and then narrow down to focus on staking with Embr.
Blockchains use automated systems called consensus mechanisms to process and verify transactions. The consensus mechanisms also serve to secure these blockchain networks - making blockchains a secure and immutable distributed ledger with infinite potential to be applied to many industries, new and old.
The original blockchain, Bitcoin, uses a consensus mechanism called Proof of Work (PoW). PoW requires validators to help upkeep the network, and the network offers incentives to the validators to do so. This consensus mechanism, however, is not terribly energy efficient and can only process a small amount of transactions per second.
To improve upon this, Proof of Stake (PoS) gained popularity in recent years where holders of the cryptocurrency can lend their coins to help validate blocks of transactions in exchange for passive income in the form of an APY. Many of the newer blockchains utilize a PoS or modified PoS consensus mechanism due to the clear benefits.
Embr is a project built on the Binance Smart Chain (BSC), a modified version of a PoS system designed to house smart contracts, like Ethereum. Three custom-made smart contracts power the Embr token, utilizing the BSC’s low gas fees and quick transaction speeds.
If you stake your $EMBR tokens, you won’t be validating transactions, but your staked tokens will earn you rewards nonetheless for holding. By staking your Embr, you are simply agreeing to lock up your tokens for a predetermined amount of time in our audited vault in exchange for rewards in the form of an APY.
In experience, staking with Embr will feel more like a Certificate of Deposit - like one you'd get from a bank - rather than staking a native coin like ADA (Cardano).
Blockchains use automated systems called consensus mechanisms to process and verify transactions. The consensus mechanisms also serve to secure these blockchain networks - making blockchains a secure and immutable distributed ledger with infinite potential to be applied to many industries, new and old.
The original blockchain, Bitcoin, uses a consensus mechanism called Proof of Work (PoW). PoW requires validators to help upkeep the network, and the network offers incentives to the validators to do so. This consensus mechanism, however, is not terribly energy efficient and can only process a small amount of transactions per second.
To improve upon this, Proof of Stake (PoS) gained popularity in recent years where holders of the cryptocurrency can lend their coins to help validate blocks of transactions in exchange for passive income in the form of an APY. Many of the newer blockchains utilize a PoS or modified PoS consensus mechanism due to the clear benefits.
Embr is a project built on the Binance Smart Chain (BSC), a modified version of a PoS system designed to house smart contracts, like Ethereum. Three custom-made smart contracts power the Embr token, utilizing the BSC’s low gas fees and quick transaction speeds.
If you stake your $EMBR tokens, you won’t be validating transactions, but your staked tokens will earn you rewards nonetheless for holding. By staking your Embr, you are simply agreeing to lock up your tokens for a predetermined amount of time in our audited vault in exchange for rewards in the form of an APY.
In experience, staking with Embr will feel more like a Certificate of Deposit - like one you'd get from a bank - rather than staking a native coin like ADA (Cardano).
Updated on: 14/02/2024
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