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How to Earn BitcoinPoS Rewards

CryptoCurrency Press Release

12th August 202010:08 pm

How to Earn BitcoinPoS Rewards

Staking offers a lucrative avenue of passively earning cryptos through mining or trading. Crypto staking is the process of holding funds in a cryptocurrency wallet to support a blockchain network’s security and operations, i.e., proof-of-stake (PoS) blockchain. In staking, you can validate transactions and earn Staking rewards on top of your holdings and grow your digital assets. 

Bitcoin Proof of Stake (PoS) consensus, i.e., BitcoinPoS supports staking, enabling network validators to earn passive income. The platform offers secure staking, meaning that users’ funds are not at risk of easily being manipulated or slashed. Also, BitcoinPoS retain full ownership of their crypto with the platform taking a commission on all rewards earned. Here is how you can delegate your staking power to BitcoinPoS and earn lucrative rewards. 

About BitcoinPoS 

Bitcoin Proof of Stake is a peer-to-peer electronic cash system that claims to be the next evolution in Bitcoin technology. BitcoinPoS takes everything about Bitcoin and combines it with a highly efficient, scalable, and flexible proof of stake consensus algorithm, making it “faster, more rewarding, and ready for real-life digital currency payments”. 

BitcoinPoS was launched on the 2nd of May 2020 and ran on an open-source software referred to as BitcoinPoS Core. Like Bitcoin, the BPS supply is capped at 21 million. New coins are generated not by mining but through staking where new coins are created by stakers who are rewarded. On the platform, the block rewards are cut by 25% every 700k blocks-approximately four years. 

In essence, Bitcoin Proof of Stake adopts everything about Bitcoin but brings new advances in blockchain technology onboard, thus reimagining Satoshi’s vision with a decentralized, secure, and fast coin-BPS.

What is Proof of Stake (PoS)? 

To better understand how to earn BitcoinPoS rewards, it’s imperative to understand Proof of Stake consensus. If you’re familiar with Bitcoin, you probably know that it employs Proof-of-Work (PoW) consensus. In PoW, miners compete to solve complex mathematical problems to verify the transaction and add the next block to the blockchain. In exchange, miners earn rewards usually based on the block size and the transaction fee. 

PoW consensus comes with significant downsides such as dependency on electricity, which creates a massive strain on the environment and centralization, making the network susceptible to 51% attacks and scalability issues.   

Proof of Stake (PoS) is quite different from PoW. Instead of mining to produce a new block, PoS leverages staking to generate and validate new blocks. Staking involves network validators looking up their coins to randomly select the protocol at specific intervals to create a block.

 Usually, participants that stake larger amounts have a higher chance of being chosen as the next block validator. Staking gives Proof of Stake validators a source of income without needing powerful mining hardware. 

Staking 

As explained earlier, staking is the process of actively participating in transaction validation on a proof-of-stake (PoS) blockchain. Proof of Stake validators stakes a minimum-required balance of a specific cryptocurrency to validate transactions and earn Staking rewards.  

How Does Staking Work 

Staking works in different ways, depending on the PoS blockchain network. Generally, the first step in staking is to deposit cryptos into the network as a stake, ensuring that the minimum staking balance is met. Each PoS blockchain has its particular staking currency, with some networks adopting a two-token system where the staking rewards are paid in a second token.  

The size of a stake is directly proportional to the chances of a node being chosen as the next block validator. If the node successfully creates a block, the validator receives a reward depending on how staking rewards are calculated in that particular network. Validators also lose part of their stake if they double-sign or attempt to attack the network. 

Staking on BitcoinPoS 

Staking on BitcoinPoS is simple and straightforward. Staking BPS follows the prerequisites below:

  • The coins to be staked need to be matured; this means that the unspent outputs (UTXOs) need to have a depth in the main chain of at least the 500 blocks (which is the coinbase/coinstake maturity)
  • The coins to be staked need to be compatible address/transaction types, i.e., P2PK and P2PKH. 

BitcoinPoS offers staking rewards to validators according to stake size. This means that the higher the stake, the higher the chance for the staker to mint a block before anyone else. The staking rewards are split into ten equal rewards using the MPOS algorithm( MPoS + PoS).  

In addition to staking rewards, stakers are also rewarded with transaction fees for securing and validating the network. 

BitcoinPoS Staking Rewards  

BitcoinPoS staking rewards for the blocks up to 120K are split as follows. 

  • Blocks 0 to 40000 have a reward of 50 BPS
  • Blocks 40000 to 80000 have a reward of 25 BPS
  • Blocks 80000 to 120000 have a reward of 12.5 BPS
  • At block 120001, the BPS and Bitcoin reward/block are aligned, at 6.25 BPS.

The blocks from 0 to 5000 are proof of work blocks set aside for continued development and maintenance of BitcoinPoS network.

Staking on BitcoinPoS – Getting Started   

Staking on Bitcoin Proof of Stake is a simple way of earning passive income. It requires minimal hardware coupled with low electricity costs. Here’s how you can start staking BitcoinPoS coins on the blockchain and earn passively. 

  • Download Wallet– The first step is to download the BitcoinPoS wallet for Windows, Linux, and Mac OS X
  • Purchase BitcoinPoS– After downloading the wallet, the next step is to purchase BitcoinPoS from your preferred crypto exchange. BPS has been listed in Coin Tiger,Finexbox and Bilaxy crypto trading platforms.
  • Stake Coins– Staking BPS is quite easy and straightforward. Anyone with a computer and a minimum amount of BPS in his wallet can stake. However, if you don’t want to stake on your own and leave the wallet open to generate the rewards, you can use one of the staking pools, which support BPS: StackofStake or MyCointainer. The team is also working on the cold staking feature that should be released in the nearest future. 
  • Earn Rewards– After staking, start earning rewards based on the amount of staked BitcoinPoS. The rewards are calculated using the MPOS algorithm.   

Closing Words 

Bitcoin Proof of Stake is the next frontier in realizing Satoshi Nakomoto’s vision of a decentralized, bank-less, peer-to-peer financial system. BitcoinPoS is not a fork of Bitcoin. Instead, it looks to provide a better version of Bitcoin for seamless mainstream adoption. The network leverages Proof-of-Stake (PoS) consensus allowing nodes to earn a passive income via staking. Stakers are offered rewards in exchange for securing and validating the network. Stake reward on the network is dependent on the amount of BPS held as stake. Staking on the BitcoinPoS network is not only easy but also lucrative with minimal hardware and electricity cost requirements. You simply need to download the wallet, stake BPS and start earning passive income.    

 

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THE AUTHOR
Jamal Malik
Jamal Malik