Coinbase Launches Tezos Staking Rewards for Retail Investors

Coinbase has introduced a staking service for Tezos (XTZ), which enables users to earn dividends or interest on their XTZ holdings just for depositing and holding the token on the platform.

Coinbase explains that through its newest offering, eligible US customers who deposit Tezos (XTZ) can opt for the exchange to use the stored assets for staking. The process involves the users delegating their token holdings to those running the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term software in exchange for sharing some profit.

The decision was taken in the context of huge interest from retail investors who were open to the idea of earning interest on their crypto assets. The US major crypto venue is also no strange to staking rewards as Coinbase Custody, its institutional crypto-asset storage service, has originally introduced the staking service for Tezos (XTZ) in March 2019.

Return to count around ~5%

Meanwhile, Coinbase isn’t the only one platform doing staking as other large crypto exchanges also move toward staking-as-a-service offerings. Additionally, this couldn’t come at a more interesting time for XTZ, which has seen a listing spree as of late.

“Coinbase is offering an easy, secure way for anyone to actively participate in the Tezos network. While it’s possible to stake Tezos on your own or via a delegated staking service, it can be confusing, complicated, and even risky with regard to the security of your staked Tezos,” the San Francisco exchange explains.

According to the official announcement, with Tezos Proof-of-Stake (PoS) Proof-of-Stake (PoS) Proof-of-stake is a type of consensus algorithm in which a blockchain network aims to achieve distributed consensus. It is also process used to reach an agreement on a single data value. In PoS-based cryptos, the creator of the next block is chosen through various combinations and parameters. In essence, an individual person can mine or validate block transactions based on how many coins he or she holds. Adhering to this concept, the more Bitcoin or altcoin owned by a miner, the greater the mini Proof-of-stake is a type of consensus algorithm in which a blockchain network aims to achieve distributed consensus. It is also process used to reach an agreement on a single data value. In PoS-based cryptos, the creator of the next block is chosen through various combinations and parameters. In essence, an individual person can mine or validate block transactions based on how many coins he or she holds. Adhering to this concept, the more Bitcoin or altcoin owned by a miner, the greater the mini Read this Term) network, clients can now stake XTZ token and earn a return on it each three days once their initial holding period completes 35–40 days. Following the company’s fees deduction, Coinbase is expecting its staking’s annual return to count around ~5 percent.

Staking, the company explained, enables users to earn dividends or interest on their digital assets for validating transactions and also allows them to vote on changes in the blockchain.