Staking With Stacks or Staking With Ethereum? Which is More Advantageous?
Hello there!
In this article, we will learn the most efficient way to stake together.
First of all, I would like to start explaining to you why I prefer staking with Stacks and not with Ethereum, which is the center of attention. Actually, I should say Stacking. Because it is a different system than normal staking. In fact, when we look at it, the logic is the same. Earning rewards with the coin you own. The main reason why it is different is the technology used.
Stacks adopts Proof-of-Transfer (PoX) technology while Ethereum stakes follow Proof-of-Stake (PoS) technology. So what are PoX and PoS?
Proof-of-Transfer (PoX) Advantages Over Proof-of-Stake (PoS)?
To staking with PoS, you must lock your assets to verify them. When you lock the amount you want to stake during this transaction, no transaction can be made with this asset until the lock is unlocked. This is really a big drawback.
However, stacking with PoX is left to the users' own initiative. We can support the situation here for the installation of Stacks. Stacks was established as a decentralized computing network. However, it was intended for users to receive and control their data. As a matter of fact, we can easily say that they have achieved this. Stacking with this most striking and attractive new technology, PoX, is a really great advantage.
I am sure that you will agree with me after hearing these. If you don’t agree with me here, also listen to this,
Minimum Requirements for Staking in STX and ETH
With Ethereum, the minimum asset you need to have in your wallet at stake is 32 ETH. Considering that the current price of ETH is around 2,2k Dollars, it is about 70k Dollars. Really a lot, isn’t it? I also want to add that the rewards will decrease as the amount of ETH staked in ETH staking increases. It is also useful to consider this.
This graph is an estimated graph where rewards may decrease as the amount of Ethereum stake increases.
When we look at the STX side, if you want to do stacking alone, you need to have an STX of 90k and above. When you hear that, I can hear you asking how he can be more powerful then. Don’t be afraid, this amount is already quite high, and if you want to stacking with STX, another method is the pool system. The minimum amount required for stacking with the pool system is 40 STX.
And let’s get to the most crucial point. If you staking with ETH, you will earn ETH as a reward but if you do stacking with STX, your reward will be BTC, which we define as the gold of the digital environment, which is the most valuable among crypto coins.
At the end of my article, I would like to say goodbye to you that STX uses the world’s safest blockchain, the Bitcoin Blockchain.
I hope I was able to convey my thoughts to you most clearly. See you on another matter.
Disclaimer: It is not any cryptocurrency investment advice described in this article. Please note that it is your responsibility if you wish to evaluate it as an investment.