Cryptocurrency staking is probably the most risk-averse method for earning income from digital assets. This is contingent on the condition that you don't delegate control of private keys to a third party. In that case, staking Avail, or any other cryptocurrency for that matter, is no safer than keeping the holdings on a centralized exchange or in a random online wallet. Remember, 'Not your keys, not your crypto.' When we explain AVAIL staking here, it's implied that it's done on your own or through a trusted non-custodial provider that doesn't have access to private keys and other sensitive data, while providing an uninterrupted flow of Avail staking rewards.
Now that we are done with 'User Warning,' let's move on to explaining how staking works on this particular blockchain and how AVAIL staking rewards are generated and allocated among network participants. There is probably no need to take a deep dive into what staking is in general. You can find a detailed explanation of this recently emerged method of making money with crypto on our blog. Nevertheless, the technical fundamentals of AVAIL are worth attention because they are unique and quite different from those of Ethereum and many other top PoS cryptocurrencies.
Avail DA is the essential next step in a three phase plan to provide an infrastructure layer to accelerate the unification of web3. Nexus is second, addressing cross chain composability and responsive asynchronous messaging. Third, Fusion Security provides strong, shared economic security.
Securely transition data availability off-chain, significantly cutting costs, and boosting L2 scalability and efficiency.
Designed to scale as user activity increases, allowing higher throughput without sacrificing performance or reliability.
Cutting-edge solution for encoding, committing to, and verifying the availability of data, ensuring that it remains accessible and reliable even in the face of node failures, network disruptions, or malicious actors.
Staking AVAIL tokens contributes critical crypto-economic security to the Avail blockchain network protecting the networks of rollups building on top. Anyone can acquire AVAIL tokens and stake them to secure the Avail network and earn rewards.
Create an Account: Sign up and create an account within the app. This process involves writing down and storing in a safe place a seed phrase, and creating a password. No other personal information is passed to CryptoStake, ensuring your security and privacy. Additionally, CryptoStake has incorporated biometric security for an extra layer of safety.
Access Ethereum Validator: The CryptoStake app grants users easy access to an Ethereum validator. Once again, it's not a staking pool - with CryptoStake, you become a genuine Ethereum validator. Each user is assigned a unique validator ID, making tracking across multiple platforms seamless.
Utilize Rewards Calculator: Evaluate your potential profits with CryptoStake's accurate rewards calculator, assisting you in making informed decisions about your staking strategy.
Staking Wallet Functionality: The app serves as an Ethereum staking wallet, allowing users to send and receive crypto on the go. Staking rewards are conveniently allocated to this wallet.
The presence of nominators sets Avail apart from Proof of Stake in Ethereum 2.0, where stakers are directly responsible for proposing and validating new blocks. In essence, nominators in NPoS can be compared to shareholders in a large corporation. Like shareholders voting for a trusted member of the board of directors to oversee the company and act in their best interest, nominators choose validators they trust to uphold the integrity of the network.
Those who can't dedicate minimum AVAIL amount still can engage in staking and earn rewards with only 1 AVAIL through the so-called nomination pools that are large enough to be included in the bag list, a semi-sorted list designed to manage nomination intents efficiently. However, pool members can't participate in Avail governance.
Staking AVAIL is different from that of other PoS tokens since it uses a unique consensus mechanism called Nominated Proof of Stake (NPoS), which introduces nominators who appoint validators that propagate blocks and earn rewards. One can take up either role, depending on technical expertise and the size of Avail holdings. Small-scale investors can join nomination pools for as little as 1 AVAIL, though the staking rewards will be proportionally smaller. However, the best AVAIL staking approach lies in using the CryptoStake app that streamlines the entire process.
Checking can be done in the Avail wallet or the CryptoStake app, where they are renewed after each era.
Developers looking to leverage similar features to those planned in Ethereum’s danksharding roadmap, like validity proofs and data availability sampling, can start using them today by integrating with Avail DA. The integration can be done with just a few lines of code, enabling developers to instantly start leveraging Avail DA’s core features.