Staking platform development - outsourcing company Boosty Labs

Staking platforms development

Staking is the process of intentionally holding cryptocurrencies in an account in order to receive passive income. In most cases, you can earn on staking with the help of cryptocurrencies that work on the basis of the PoS (proof of stake) algorithm and its modifications. For beginners, staking and the process of launching it can seem extremely difficult. The solution to the problem is staking platforms, the developers of which have created simplified schemes for organizing a source of passive income. Boosty Labs is a world-class fintech and cloud engineering team with a solid background of practice that combines consulting, strategy, design and engineering at scale. Drawing on its extensive experience, Boosty Labs team can help with staking platforms development.
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Three types of staking

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Fixed staking

Fixed staking is suitable for users who want to get the maximum profit. Under this staking model, it is agreed in advance how long the funds will be frozen. During this period, the funds are not available for trading or withdrawal. The user can redeem them back without waiting for the end of the period, but in this case only the amount is returned to him, without additional interest. The interest rate on fixed contracts is higher than in other types of staking.

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DeFi staking

Projects in the DeFi sector provide financial services through smart contracts. They are used to obtain higher annual returns for certain currencies.

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Variable staking

Variable staking, unlike fixed staking, does not have an end date for the contract. Interest continues to accrue until the user himself wants to withdraw the pledged assets. Typically, interest begins to accrue within a day after the funds are deposited. Rewards are paid every 30 days. Variable staking is suitable for those who prefer the flexibility of assets and are not ready to freeze them for a long time. Coins are stored in a spot wallet, which regularly receives rewards for storage.

Benefits of working on a staking platform

Simplicity

The user does not need to understand the intricacies of trading - experienced traders are engaged in capital increase.

Possibility of choice

Fees vary by platform; a wide range of coins available; some exchange platforms charge a fee for each trading, deposit or withdrawal operation, others make special offers without additional fees; different payment instruments are available on each platform – the user can conduct his own analysis and make a choice.

Low risk

The risk of losing investments is low, since you can always withdraw cryptocurrency from a staking account.

Security

Staking platforms protect user funds and provide (in some cases) for the passage of KYC / AML procedures.

The convenience of use

The best staking platforms offer 24/7 multilingual support.

Staking is an alternative to the classic mining (mining process) of cryptocurrencies. For example, the most capitalized coin, Bitcoin (BTC), operates on a PoW algorithm. It involves the analysis by the system of the amount of computing power at the disposal of the user. 

The complexity of mining Bitcoin and similar coins grows with the development of the network, which increases the system's requirements for the amount of computing power available to those who want to earn money on PoW mining.

This technical feature provokes members of the crypto community to participate in the hardware race. As a result, PoW miners are forced to regularly increase their capacity, which leads to an increase in electricity consumption in the world. The operation of computers and other installations for the production of PoW cryptocurrencies has a negative impact on the environment. Many regulators around the world, including regulators in New York, are concerned about the environmental impact of mining bitcoin and similar coins.

Against the backdrop of the negative impact of PoW mining on nature, a PoS algorithm that does not force members of the crypto community to participate in a hardware race looks like its more environmentally friendly alternative.

To start earning on staking cryptocurrencies, you need to choose a coin and a platform to work with it.

There are several schemes for staking cryptocurrencies on the market. Their differences are due to the nuances of the approach to the organization of work and the technical details of the project. Formally, the staking market can be divided into two segments: 

  • work as a validator; 
  • delegation.

A network validator is a participant that has set up and launched its own technical node (node) for processing computational tasks. It can function on its own and be rewarded for staking. Also, the owner of the node, if desired, is able to process requests from other stakers – those who do not have their own node – for a certain fee.

Usually, the system imposes special requirements on the validator. In particular, such market participants have to keep more coins in their account than other investors in order to earn on staking.

The process of delegation, or distribution of tasks, implies the transfer of operations to the owner of the node for processing. In this case, the user retains access to assets.

Unfortunately, for beginners, staking and the process of launching it can seem extremely difficult. The solution to the problem was platforms, the developers of which had previously created simplified schemes for organizing a source of passive income. This direction of staking in the crypto community is commonly called staking as a service.

Platforms that offer such services provide investors with a set of tools with which they can access a source of passive income in the shortest possible time.

Some of the benefits of SaaS include:

  • To start earning, you do not need special knowledge and skills.
  • The risks of losing assets due to technical errors are minimized. The process is set up by professionals. This approach avoids the risks associated with launching a node on its own.
  • You can earn income in the shortest possible time.There is no need to comply with the special network requirements that apply to validators.