• OKX wallet now allows users to stake Bitcoin and BRC-20 tokens.
• Staking is a process where crypto holders can earn passive income on their holdings.
• OKX has implemented the BRC-20s protocol, which allows users to stake Bitcoin and BRC-20 tokens via their platform.
Understanding Staking: PoS and DeFi
Staking is a process where users participate in a Proof-of-Stake (PoS) blockchain network by holding and “staking” their cryptocurrencies in a wallet to support network operations such as transaction validation, security, and governance. In return, stakers receive rewards, often as additional tokens. It’s a way for crypto holders to earn passive income on their holdings, similar to earning interest in a traditional bank account.
Staking in Non-PoS Blockchains Like Bitcoin
Bitcoin operates on a Proof-of-Work (PoW) consensus mechanism, fundamentally different from the Proof-of-Stake (PoS) mechanism where staking is typically used. In PoW, miners compete to solve complex mathematical problems, and the first one to solve the problem gets to add a new block to the blockchain and receive a reward in Bitcoin. This process requires substantial computational power and energy.
How Does Staking Work In A Non-PoS Blockchain?
Bitcoin was not designed to support staking in the same way that PoS blockchains do; however with the advent of DeFi (Decentralized Finance), it has become possible for users to “stake” Bitcoin differently than traditional staking methods. One example of this is through OKX Wallet’s implementation of its open source BRC-20s protocol: allowing users deposit both BTC & BRC–20 tokens into the OKX Wallet & then stake them via its Web3 DeFi aggregator – earning rewards in form of BRC–20 tokens as result.
The Long Term Value Of The OKX Stacking Rewards
The long term value of these rewards are currently unknown; however many crypto users still opt for this method as it offers potential for higher returns compared to simply holding onto their coins without any additional effort or risk taken up by user themselves – making it an attractive option for some crypto investors looking increase their overall returns over time.
OKX Wallet now allows users to earn passive income by staking both Bitcoin & BRC–20 tokens via its open source protocol & Web3 DeFi aggregator – with potential higher returns available compared with simply holding onto coins without taking up further risk or effort from user themselves – making it an attractive option for some crypto investors looking increase their overall returns over time.