Have you ever heard about Staking? In this article we are going to tell you about this process in the Solana network.
Staking in Solana is a mechanism that allows to obtain rewards while contributing to the security and stability of the network.
At AllDefi we will explain the staking process, steps and tools you can use. Read on!
It is a blockchain platform designed to offer scalability, speed and low Blockchain designed to offer scalability, speed and low cost for decentralized transactions and applications (dApps).
In addition, it allows tools created for Ethereum (ETH) to easily interact with dApps designed in Solana, improving their compatibility.
Solana has been noted for its high performance and its ability to handle a large volume of transactions without sacrificing decentralization or security.
These benefits are made possible by a unique combination of technologies, such as the Proof of History (PoH) and Proof of Stake (PoS) consensus mechanism, which allows you to process up to 65,000 transactions per second (TPS). allows you to process up to 65,000 transactions per second (TPS).
The PoH allows Solana to securely and reliably record and verify the time and order of transactions on the network, i.e. time is the backbone of the algorithm.
To achieve this, the PoH protocol uses a cryptographic function called Verifiable Delay Function (VDF), which takes a specific amount of time to execute. By applying this function, Solana creates a historical record of transactions that is difficult to manipulate and allows for efficient synchronization between network nodes.
PoH enables Solana to optimize the speed and efficiency of its network by reducing the communication overhead between nodes. by reducing the communication overhead between nodes and enabling and by enabling parallel validation of transactions. This results in increased capacity to handle a large volume of transactions.
Although PoH is the primary consensus mechanism in Solana, the network also uses PoS as an additional consensus mechanism to maintain security and decentralization.
PoS complements PoH by providing incentives for network participants (validators) to act honestly and contribute to the stability of the system.
Staking in cryptocurrencies is a process in which users block a users block a certain amount of their cryptoassets in virtual wallets, in order to support and maintain the operation and security of operations in a Blockchain network.The objective is to support and maintain the operation and security of operations in a Blockchain network.
Remember that these rewards may vary according to the amount of cryptocurrencies blocked and the time they are kept in Staking.
Flexibility in participation: Solana offers the option of participating in the Staking as a validator o delegator. This allows users to choose the level of commitment and responsibility they wish to assume based on their technical expertise, resources and investment preferences.
In Solana, validators lock (Staking) their SOL tokens as collateral and are rewarded for validating and approving transactions based on the amount of tokens they have staked.
In the case of delegatorsthey can transfer their SOL tokens to a validator and share the rewards in proportion to their contribution.
Inflation rewards: In Solana, new SOL tokens are issued as inflation rewards to incentivize validators and delegators participating in the Staking process. These rewards are distributed proportionally among validators and delegators based on the number of SOL tokens they have locked in Staking.
Transaction fees: Validators and delegators also have the opportunity to earn a portion of the transaction commissions generated on the network. Each time a transaction is performed on Solana, a small commission is charged, which is distributed among the participants as an additional reward for their contribution to the security and stability of the network. as an additional reward for their contribution to the security and stability of the network.
Staking in Solana as a delegator is a simple process that follows these steps:
1-Select a validator: The first step is to research and choose a reliable validator in the Solana network. You can evaluate validators based on their commission, uptime, performance and reputation. AllDeFi, with its SmartChoicetool, helps you analyze different liquidity pools and select the most suitable validator for your needs.
2-Create a Staking accountOnce you have selected the validator, you need to create a Staking account linked to your wallet. This account will store your locked SOL tokens and will be used to receive the Staking rewards.
3-Transfer SOL tokens: Next, you need to transfer the SOL tokens you want to block in Staking from your wallet to the newly created Staking account.
4-Delegate your SOL tokens: Finally, you must delegate your SOL tokens from the Staking account to the chosen validator. The validator will start receiving your tokens as part of his guarantee and will share the rewards with you based on your contribution.
