The truth behind the misconceptions holding liquid staking back -Breaking
Blockchains can be relied upon proof-of-workValidation of the (PoW), since its inception. However, the PoW consensus turned out to not be sustainable because of its excessive energy use and need for high-powered hardware. It also created barriers to entry. That’s why blockchains are adopting proof-of-stake consensus algorithms (PoS), where those wanting to earn rewards don’t have to compete against other miners, but can simply stake part of their crypto for a chance to be chosen to be a validator — and reap the returns.
Anyone who has crypto in PoS Blockchains should want to make the most of the opportunities offered by staking. According to our Report, while 56% of those surveyed had staked before, many who hadn’t staked or wouldn’t stake again pointed toward the same hesitation: They don’t want their assets locked up in staking, not when those assets could be put to use elsewhere. The best of both the worlds is liquid staking. This allows investors to both stake their assets and allow them to invest those assets in different projects while they are locked up.
Mohak AgarwalClayStack’s CEO is he. ClayStack is his first venture capitalist and investor.