We are pleased to inform the Ultima community and those who want to understand staking but don’t know where to start: soon, SMART WALLET will support staking, offering users broad prospects for getting rewards by freezing their coins for a specific period. To understand how this technology will work, it’s essential to delve into the structure of staking. The Ultima team has prepared detailed information about the operation of staking and its advantages.
When the technology of staking appeared in the world of cryptocurrencies, it sparked colossal interest among crypto market participants: the attention of developers, investors, and crypto enthusiasts steadily grew. But why?
To simplify the understanding of staking, one can draw a parallel with a bank deposit. A client transfers money to the bank for safekeeping, and during a specified period, they cannot use it, but at the end of the deposit term, their money is returned with interest. The mechanism of staking technology is similar to a bank deposit: it allows cryptocurrency owners to participate in the consensus achievement process in the network and receive a reward for it. That is, investors who place their digital assets in a wallet to support blockchain network operations receive a reward in the form of additional tokens in exchange for their contribution. For more on how staking works, see the article in Forbes.
The main goal of staking is to ensure the security and reliability of the network and reward investors for their participation in this process. Therefore, one of the key advantages of staking is the opportunity to earn income in the form of cryptocurrency. Token owners can simply hold their funds in the wallet and receive payments for supporting the operation of the blockchain network. This makes staking attractive to investors looking for opportunities to increase their capital.
It is worth noting that the profitability scale of staking is impressive. The aggregator Staking Rewards estimated the staking industry at $271.15 billion at the time of writing the article, with the website confirming total rewards of $5.85 billion for the year.
Considering the promising development of blockchain technology and cryptocurrencies, staking has significant growth potential. The continuous improvement of staking protocols, the expansion of blockchain networks, and the introduction of innovations contribute to the development of this area.
Additionally, the growing interest from corporate investors and financial institutions in staking’s possibilities also speaks to its potential for further development. Institutional investors have extensive financial resources and professional experience, allowing them to make large capital investments and play a decisive role in financial markets. Funds, banks, and other traditional financial organizations are beginning to recognize the benefits of staking and are actively engaging in this process.
Given that staking stimulates network participation through rewards, it promises rapid development of the crypto ecosystem. The more cryptocurrency users are involved, the more decentralized these networks will become, making them harder to hack. The article in Chainalysis rightly notes that improving rewards and incentives for staking will make this technology even more inclusive, providing new opportunities to more users.
More than 3 million people have already chosen the Ultima ecosystem, which offers innovative staking technology with tremendous prospects for further growth due to its environmentally friendly, accessible, and secure way to support the cryptocurrency network. This brings participants not only stable rewards in the digital assets they freeze but also ensures the safe storage of assets and high protection against potential theft. The technology is specially designed to allow any user to participate, regardless of their level of understanding of the features and processes.