An “unearned income” through IOST
“Staking” cryptocurrency tokens based on a “Proof of Stake” algorithm is the latest trend in the cryptocurrency market for reaping profit without much effort. The method generates rewards similar to interest and is possible to implement using cryptocurrencies such as EOS and TRON and is most profitable through Internet of Service Token (IOST). Staking leads to a safer blockchain Staking is used on verification-based blockchain platforms, where a token owner delegates their tokens to a block producer, or a node on the blockhain, and they share rewards accrued by the node. If more tokens are staked, it is more difficult for the blockchain network to be attacked, leading to a more secure platform. From the token owner’s perspective, the more tokens owned leads to a safer network. Regular income through staking and voting Other than network protection, “staking” leads to regular income regardless of cryptocurrency price fluctuations. There are around 80 projects that pay rewards for staking. In terms of the ratio of tokens staked to total available tokens, EOS leads the pack at 48.1 percent, IOST at 27.81 percent, Ontology at 12.1 percent and TRON at 11.9 percent. Among the tokens, IOST has the highest return on investment, with rewards of at least 40 percent. IOST has received the highest rating in terms of staking from numerous websites that review blockchain networks based on their market capitalization, price, profit, risks and difficulty in participation. IOST excels in performance IOST, much like its name, is an internet platform. It aims to establish a high performance blockchain infrastructure that has scalability, efficiency and security, much like other tokens such as Ethereum, EOS and NEO. IOST’s algorithm is more accurately about Proof of Believability than Proof of Stake, as the former allows for higher efficiency. What is the Proof of Believability algorithm? Proof of Believability provides rewards based on the level of participation and contribution to the network. For example, rewards may increase if participants find a development error. Nodes, which validate transactions on the blockchain in return for rewards, receive Servi token based on the contribution, and these tokens are spent to authenticate blocks. IOST token holders vote to determine the network’s node partners from available candidates and receive 50 percent of their node partner’s rewards. It is not possible to receive a reward without voting. Is it possible to operate a node? In order to become a node to operate the IOST network, the participant must have more than 0.05 percent of available IOST tokens or receive that amount of votes. That translates to around 20 million won ($16,800) worth of IOST tokens. Anyone can become a node if you win enough votes. Ultimately, there are more rewards for those who stake IOST, have high levels of participation and regularly vote for trustworthy nodes. However, this would not mean much if IOST prices plummet. While IOST reached the 60 won level last year, it has fallen to around 11 won.