It is recommended to look at it first to have a global view.What kind of opportunities will the awakened PoS consensus bring to the Staking economy?It is recommended to look at it first to have a global view.
Observing the current industry, most exchanges and wallets have not put the potential business of PoS into the operation layout. There are two possible reasons: first, there are not many coins with large market capitalization that belong to the PoS consensus; second, It's a bear market now, I'd rather do less, and don't waste my team's bullets because of the wrong direction.
But others have noticed the business opportunity of PoS. As mentioned in the previous article, domestic Huobi, Cobo, Wetez, etc. have seen the potential market potential of PoS. Overseas, Coinbase has officially announced that it will incorporate the Staking business into the exchange system in the future. Foreign client wallets, such as Maguam, Atomic wallet, etc., already support some currency staking services.
In the past, fiat currency exchanges brought a lot of traffic, contract exchanges brought a lot of traffic, and transaction mining brought a lot of traffic. Traffic is crucial to entry-level products. Will the PoS track become a route for exchanges or wallets to overtake?
PoS has two direct effects on exchanges or wallets
1. Additional benefits
The extra income comes from the exchange’s use of users’ deposits in the exchange for staking, while running nodes and enjoying the annual additional income, which will become the exchange’s additional income in addition to transaction fees and listing fees. We don’t know if most exchanges have already started to do this, but on the surface, there are very few exchanges that actually share revenue with users.
2 traffic
When users start to pay more attention to the equity benefits of holding currencies, exchanges that can provide staking services and users can get rewards will be better than exchanges without staking services. For example, there is an example in the Tezos ecosystem. Hitbtc has never promised to distribute rewards to users, so it has fallen from the exchange with the highest trading volume of XTZ. As for how to use the PoS business scenario to play traffic better, this is a later story, Huobi Exchange is already trying.
Wetez believes that PoS-related businesses will be standard for any wallet and exchange in the future, and those without will be gradually eliminated by the market.
Why do we think PoS basic service will be necessary?
1. As more blockchains use PoS as the basic consensus, users will gradually realize that the coins they hold should have equity benefits. Correspondingly, exchanges and wallets need to respond to user demands, which will belong to The user's rights and interests are indeed returned to the user, otherwise, the user may be lost.
2. Future legal supervision may require exchanges to disclose the use of users' deposits for staking. Only with the user's consent, the staking business is compliant.
3. Maintaining nodes on different chains and participating in PoS mining involves a lot of trivial work, for example, following the community to upgrade in time and complying with the rules of different chains to avoid being slashed, etc. These tasks require a professional team.
4. For an exchange, an exchange that helps the community and goes deep into the community can form its own uniqueness. The action of entrusting to obtain rewards, view rewards, vote and other rights and interests will be an important indicator for users to value the exchange services .
What basic conditions do exchanges and wallets need to integrate into the PoS business?
1. Dedicated and professional node operation team (you can also choose to outsource)
If you want your coins to participate in staking and generate income, the basic condition is to run nodes and track community updates for a long time. Long-term uptime of nodes and avoiding being slashed are the keys to stable income.
For a large exchange, we think that it will invest manpower to maintain nodes. First, it has sufficient manpower. Second, for safety considerations, having its own node will be a plus; for small and medium-sized exchanges Therefore, without too many people and energy to operate and maintain nodes, a third-party outsourcing team will be a good option, and service organizations such as Stakd.us and Wetez are born.
2. Understand PoS related knowledge and educate users
Many users do not know or know the relevant rights and interests of PoS coins they hold, not to mention how to allow them to perform Staking operations to obtain rewards. Exchanges or wallets must have clear tutorials and good page displays to help users obtain their due rights .
Looking to the future from the present, possible future directions
1. Various financial products based on PoS
The nature of PoS's fixed income every year makes it have the same attributes as bonds. Bonds are the most basic financial commodity. After packaging, they can be a basket of PoS ETF indexes, or derivative financial commodities that combine PoS currency with cryptocurrency lending business.
2. PoS-based community exchanges or wallets
Equity is one of the most important attributes of PoS. Equity is also one of the most concerned things for coin holders in the future. It will be another way to maintain the rights and interests of coin holders and mobilize validator nodes in different blockchain communities. imagine.
For example, an exchange provides the Tezos community with tools about staking and voting, and contacts the validator nodes in the Tezos community, and educates its followers through the nodes to use these tools on the exchange, exchanging a point of influence, Amplify validator nodes (multiple points) that can pass through different attributes in different regions, and at the same time issue points to each user who uses the tool for sticky binding, and repeat multiple chains to create an exchange with community characteristics .
The arrival of the PoS economy will bring about changes in the cryptocurrency industry. Players who seize the PoS track will go one step further, and there will be more followers. Let us wait and see this change.
