What is staked mining (how does staking mining run away)?

08/14/2023 18:47 • Blockchain Buzz • 104 views

What is staked mining? What is staked mining?

Why do we need staked mining?

In simple terms, it is to let a holder of a certain digital currency mine a token on their computer. If this token is locked, other tokens will unlock and disappear over time (like Bitcoin). Staked mining machines can obtain these tokens and profit from them through smart contracts.

But for ordinary people, this method is not safe: because there are many users participating in various activities on the network, a large amount of computing power is required to ensure the safe operation of the system. This has led many investors to choose a project called “liquidity mining” in order to increase the yield. Because the project has a low amount of funds and the cost is too high, most investors have suffered heavy losses.

Therefore, two situations will occur in the mining process: the first is that the miner decides whether to invest in output; the second is that when purchasing a certain cryptocurrency on the market, the mining pool will automatically provide rewards. However, when you want to buy back some tokens from the mining equipment, the mining pool can sell or dispose of them at a fixed price based on your asset condition. This is the so-called staked mining, which refers to a mining field maintained by one or several nodes. They use specific algorithms to cooperate with customers to create blocks.

Mining companies and traders will use their mining hardware as collateral for users to use, and then sell them to the market. In other words, as long as you have a wallet that guarantees the security, stability, and availability of the staked mining machine, you can purchase corresponding tokens on the platform, and the staked mining machine will also support other types of applications such as DeFi, NFT, etc. In this way, you have the right to exchange the tokens in your hand for virtual currencies such as Bitcoin Cash and Stellar, and you can also deposit them into the miner’s wallet for mining. Of course, in addition to the mining machine being turned off, there are many factors affecting the mining process: firstly, the greater the mining difficulty, the smaller the scale of the mining field; secondly, the number of mining pools is reduced, the total number of mining pools increases, and the types of tokens mined become more complex. Third, the entire mining process will also generate certain risks. Finally, if miners cannot withstand the negative impact from the failure of ASIC chips. In addition, it may also cause drastic price fluctuations.

How does staking mining run away?

According to official news, today there are users reporting issues of staking mining running away. The user said: My account has been hacked! I have a Binance account called “0xd2e” and received a message on my phone saying “We are using this account and registering a new one.”

This Weibo post was replied by an official account: “You handed over the private key to a certain exchange,” and this address is the public chain wallet account of a certain trading platform. “If someone transfers 1 ETH to you (worth $1 million), it means they are trying to take away all the ETH transferred to you.”

This article and pictures are from the Internet and do not represent SipPop's position. If you infringe, please contact us to delete:https://www.sippop.com/23908.htm

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

What is staked mining (how does staking mining run away)?

How does staking mining run away?

Related recommendations