STAKING

Web3 Service Provider Ankr Integrates Staking with its Infrastructure Layer

What is happening?

Ankr, a decentralised infrastructure platform announced the addition of token staking to its infrastructure layer, enabling Web3 users to profit from the fees paid to node operators. Node operators on the Ankr network now offer their customers the staking service after the successful implementation of the staking functionality.

Vested Interest DisclosureThe author is an independent contributor publishing via our brand-as-author program. Be it through direct compensation, media partnerships, or networking, the author has a vested interest in the company/ies mentioned in this story. HackerNoon has reviewed the story for quality, but the claims hereon belong to the author. #DYOR

What Is Ankr Network?

Ankr is an Ethereum token that drives the Ankr network, a Web3 infrastructure and cross-chain staking DeFi platform that seeks to make it simple and inexpensive for anybody to participate in blockchain ecosystems by developing Dapps, hosting nodes or staking. In order to provide the greatest Web3 experience possible, blockchain firms employ Ankr to operate their blockchains more efficiently. The Ankr Protocol was launched in 2021 and supported 200 billion RPC queries a month over 50 blockchains. Web3 gaming SDK and multi-chain liquid staking capabilities were introduced to the Ankr developer product portfolio in 2022.

Ankr’s nodes are located in a variety of data centres throughout the globe. It’s been a long time since Ankr has set up physical hardware servers in 24 different cloud regions across 24 different continents and oceans: North and South America; Europe; the Middle East; Asia; Oceania; Africa.

How Is Ankr Staking Going To Work?

As an alternative to Proof of Work, which needs you to execute intensive calculations using the power of your graphics card and generates high energy and hardware expenses as well as quicker wear out of your computer, Staking, also known as Proof of Stake Consensus, is a more efficient alternative.

Sunny King and Scott Nadal were the first to create Proof of Stake in 2012. The overall market capitalization of staked coins has risen from $1.2 billion to over $13 billion in only the previous two years, according to Investing.com.

A growing number of people are turning to staking businesses for their necessities. There are firms that handle the verification and maintenance of cryptocurrency networks in exchange for a share in investors’ profits. On the other hand, investors will have to put their confidence in them.

The personnel and reputation of the organisation, as well as the PoS consensus, should be thoroughly investigated before deciding to stake with a staking service. If users have any doubts about the service’s security or integrity, users should not put their money into it.

Why Is Implementation of the Staking Feature Important for Ankr?

Web3 users will now be able to stake supported tokens to both full and archive nodes on blockchains to receive a portion of the fees paid to node operators for providing users with access to distributed ledger technology networks via Ankr.

With the launch of ANKR token staking, node providers and people who own ANKR tokens can use staking to help Web3 systems grow. Ankr says that it gets more than seven billion requests for traffic every day.

It’s important to note that the Ankr team has explicitly stated that node providers must self-stake a minimum of 100,000 $ANKR tokens (as an insurance deposit) on their node in order to be granted permission to service RPC traffic arriving at the Ankr platform. Additionally, by staking ANKR tokens to support the preferred node, token holders will be able to promote certain Ankr node providers publicly. Specifically, the Ankr Network presently handles over 80 percent of blockchain traffic on Polygon, Fantom (FTM)and BNB Chain. It aims to become the market leader on Ethereum as well, as the network continues to make substantial proof-of-stake (PoS) advancements.

Final Thoughts on New Ankr Staking Mechanism

Ankr staking participants will also have voting power in the new Ankr DAO governance mechanism, which will determine allocations of treasury money, pricing and income for nodes, and choose which blockchains to integrate. In my opinion, DAO governance aims to achieve very low latency as Ankr nodes are spread across the globe. It allows the free market to influence the nodes’ locations, thus increasing the democratization of the network, a primary goal of web3 implementation.

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Image credits: Shubham Dhage, Milad Fakurian and Salvatore Andrea Santacroce.

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Traciwininger
Author: Traciwininger

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