The era of Ethereum 2.0 has arrived
Recently, a staking service called Klay Station utilizing Kakao’s blockchain currency Klay was launched. When depositing Klay for at least a week, the service gives back 18 percent in interest. The Klay Station service has been launched by Ozys, a blockchain company which recently joined the Klaytn Governance Council early this month. Coincidentally, blockchain exchange Coinone launched its own daily staking service on Aug. 5 and lifted its daily purchase limit of 6,000 per account, which has been leading to increases in its coin price. Klay, which has been priced at 200 won per unit in July on Coinone, is being traded at 500 won as of Aug. 12. Many blockchains have already adapted PoS (Proof of Stake) algorithms. It is highly likely that PoS-based staking will only increase in the future. It is expected that Ethereum 2.0 will act as a catalyst for transitions from PoW (Proof of Work) to PoS system. Then what other types of blockchain are in the limelight other than Ethereum? Among many candidates Tezos and ATOM are worth taking note of. Tezos has its own benefit of saving time and costs because it is able to upgrade itself based on Liquid Proof of Stake system without having to hard fork. ATOM selects Delegated Proof of Stake systems where 125 verified people can produce the blockchain. Then how many users are there for Tezos and ATOM? According to data from Longhash, there are 560,000 address under Tezos as of mid-June. Among them, 494 are owned by verified people and the top 10 own 20.71 percent of Tezos. ATOM has 31,400 address and the top 10 of them own 88.82 percent. The top 100 addresses account for 98.62 percent of the coins. For Ethereum there are 115.4 million addresses and tens of thousands new addresses on a daily basis. The top 10 addresses own 15.93 percent of Ethereum coins. The top 100 addresses have 35.32 percent and the top 1000 have 64.87 percent. The distribution rate of coins is highest for Ethereum, followed by Tezos and ATOM. Ethereum also has the highest number of active or potential users. How is the situation for staking Tezos and ATOM? According to market analytics data, mortgage rates for Tezos are 79.93 percent as of June and the yearly profit rate is 6.95 percent. ATOM’s mortgage rate is 93.88 percent with a profitability of 9.26 percent. Ethereum 2.0’s staking profitability is 2.3 percent. Tezos has 40 million newly distributed coins and ATOM has 17 million. The retailed coins aside from those that have been staked total 27 percent for Tezos and 42 percent for ATOM. If there are too many new coins distributed, their valuation will go down. Platforms are there to take a cautious approach by monitoring the inflation rate. Decentralization Finance or Defi is also gaining attention. Not only Ethereum, but a lot of blockchain companies are trying to launch Defi services. Tezos is taking it seriously. According to Tezos, it has been making various attempts in the sector such as launching bitcoin-backed Tezos called tzBTC. It is also preparing to launch Dexter, which is a similar concept to Defi bitcoin exchange Uniswap. Investors see the trend as an opportunity to take profit by depositing bitcoin through staking or through Defi. From the perspective of exchange operators, however, profit is not all that matters. Tezos is prioritizing cooperating and security in starting Defi. ATOM wants to build a stable network through Defi. In Korea, Coinone is operating a staking service with Tezos and ATOM. Tezos provides interest every week. Those not heavily interested in blockchain can easily participate in staking. However, it should be cautioned that staking through centralized exchanges can only result in exaggerated coin prices. With a PoW system, only a select number of miners dominate the ecosystem. With a PoS system, however, staking can distribute holdings to more people, therefore decentralizing authority. It could also mean the staking holding relationship can become highly complicated. Some are focused on decentralizing while others only care about the token price.