We are excited to announce that you will be able to stake Mars4 dollars directly on our website. Before that, you were able to stake Mars4 on SushiSwap, but to ensure the best user experience we are launching staking directly on our website as well.
Staking will be a new way to earn passive income from Mars4, and we aim to provide our clients with many tools they could use to profit.
What is staking?
If you are wondering what staking is, do not look any further.
In short, staking is a process during which cryptocurrency owners put their coins on the blockchain protocol where validation of transactions happens. Staked cryptocurrency owners collect the rewards. In that way, staking is similar to mining: both processes are used for attesting transactions, and validators profit from these actions.
The main difference between mining and staking is the type of consensus mechanism used. Proof-of-Work is employed for mining, and Proof-of-Stake is a consensus mechanism for staking.
Proof-of-Work: Slow and Expensive
Mining is not environmentally friendly - you probably have heard that - but why is that?
Let us have an in-depth look into mining and how it works.
To make a transaction, you need someone to validate it. Mining is an operation during which transactions are attested. During mining, computers work like crazy to crack mathematical problems, all just so you could trade Bitcoin or other similar cryptocurrencies. Validators gain compensations for putting their devices in the network. Mining utilizes the Proof-of-Work method to validate transactions. It is called so because behind every transaction there is a machine working hard to affirm it.
The Proof-of-Work consensus mechanism is slow, demands insane amounts of electricity and powerful computers. Mining is as expensive as it gets: you will have zero luck from it unless you invest quite a hefty sum in the beginning.
While Proof-of-Work is an original consensus mechanism to validate transactions, the blockchain market is moving towards the Proof-of-Stake method as it is more sustainable.
Proof-of-Stake: Faster, Cheaper, the Future
A new practice to validate transactions emerged: staking.
It resorts to the Proof-of-Stake consensus mechanism. Participants put their cryptocurrency into the blockchain protocol. The protocol picks a random validator to confirm transactions. Participants are not competing to be the first to solve the equation like in mining. This makes the transaction faster and cheaper.
Not only that, staking does not require as much energy as mining. You also do not need to obtain top-notch devices to start staking. This allows various sizes of investors to start earning passively from crypto.
Keep in mind that not all cryptocurrencies can be staked. For example, Bitcoins are built on the Proof-of-Work network, therefore they can only be mined.
Stake on MARS4
If you deposit your cryptocurrency to stake, the funds become locked, and you will not be able to trade it. If you want to stake directly on our website, go to staking.mars4.me.
You can also stake your MARS4 tokens on SushiSwap for 70 APY on Ether and MARS4 pairs. For a more detailed guide on how to stake on SushiSwap, check the Youtube video.
During the chosen period, the crypto will be staked and generate yield. After it ends, you receive your tokens back and can trade them as usual.