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Bitcoin (BTC), the first generation cryptocurrency, started its own incentivized consensus-protocol mechanism known as Proof of Work (PoW) to validate transactions, mint new coins, and reward users on the network.
However, it failed to address the issue of high energy consumption and the impact it has on our environment. This is due to the nature of Proof of Work (POW).
As the world of cryptocurrency evolves, Proof of Stake (PoS) mining protocols have become very common, with the cryptocurrency domain advancing, we have numerous projects joining the competition. Proof of Stake is one such newcomer that has been gaining a cult following among its users.
POS solves the energy consumption issue as it does not require energy for verifying transactions and has low entry barriers, anyone can make a huge profit out of staking the POS coins. Anyone can stake as a solo miner or join a pool of other miners.
A pooling mine is a mining method in which more than one client contributes to the creation of a block and later the block reward is split among the clients in accordance with the investment made by them. Staking pools work similarly to this pooling mine process.
It focuses on bringing the highest output out of the Staking process. Staking pools enable investors to earn passive income by validating blocks and receiving rewards. Investors combine their staking power and share the block rewards proportionally according to the member’s contribution.
The general concept is that the bigger a staking pool is, the higher the chances of picking this staking pool and verifying a block. There are generally two types of staking pools: Single-chain Staking pools that support only the native token of the project and multi-blockchain staking pools.
There are two varieties of staking pools;
Single-chain staking pools or in-house, is directly specific to a single blockchain cryptocurrency designed to support only the native token. These pools are decentralized and support a single currency.
Multi blockchain staking pools, deal with staking in more than one cryptocurrency.
Well, to know the answer to this question, let us consider the following example. John is staking solo, contributing over 2000 coins. John’s competition is a staking pool investing millions of coins.
In this case, we can say without a doubt that John’s coin weight has zero chance of being selected to validate the block. The bigger the weight of the coins the higher chance of being selected. The profits gained are higher in staking pools than in staking solo.
Why staking pools?
Selecting a large staking pool generates consistent rewards with no fluctuation because they have a larger probability of getting selected in order to validate a block. So your income is always steady and predictable.
Staying connected to the servers could prove challenging for the participants who are staking solo as it requires a consistent high-speed internet connection. Staking pools promise a consistent and continuous connection to the servers using their own hardware.
Africa has challenges with electricity supply and internet connection making it difficult for them to mine digital currency like Bitcoin or Oduwacoin.
Bright Enabulele, the visionary co-founder of Oduwacoin a blockchain strategist focused on providing blockchain solutions to underserved communities around the world has announced the official launch of his own staking pool for Oduwacoin (OWC) known as Oduwa pool.
This is a great opportunity for cryptocurrency enthusiasts in Africa and others in underserved communities who were cut off from cryptocurrency mining due to economic barriers.
We encourage Oduwacoin community members to start delegating their OWC to the Oduwa pool that is currently up and running at www.oduwastakingpool.com.
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