Liquid staking is the key to cross-chain security
Liquid staking enables larger proof-of-stake (PoS) blockchains to help secure smaller ones, conferring benefits to the industry as a whole.< /p>
Opinion
Bitcoin's genesis in 2009 will likely go down in history as one of the most remarkable technology events of all time. Demonstrating the first real use case for immutable, transparent, and tamper-proof ledgers – i.e. blockchain – it established the cornerstone for the development of crypto and other blockchain-based industries.
Now, just over a decade later, these industries are thriving. The total crypto market capitalization hit an all-time high of $3 trillion at its peak in November 2021. There are already over 300 million crypto users worldwide, while forecasts suggest that figure could surpass 1 billion by December 2022. While phenomenal, this journey has only just begun.
Several factors have contributed to the success of the blockchain and cryptocurrency industry so far. Most importantly, however, this is due to some key characteristics of the underlying technology: decentralization, lack of trust, and data security, to name a few. Major blockchain networks like Bitcoin are quite robust on their own thanks to their proof-of-work (PoW) consensus mechanism. Miners located around the world secure these networks by providing "hash" or computational power. Similarly, in the Proof of Stake (PoS) consensus that Ethereum plans to adopt soon, validators secure the network by locking or “staking” digital assets.
Related: The Truth Behind the Misconceptions Holding Back Liquid Staking
However, the number of miners or validators is very important in PoW and PoS, respectively – more miners or validators means greater security. Thus, only the largest and most established blockchains can optimally benefit from conventional consensus mechanisms. On the other hand, emerging blockchains often lack the resources to fully secure their networks, regardless of their innovation potential.
Strengthening cross-chain security frameworks is a rather relevant way to address this issue. In addition, with inno...
Liquid staking enables larger proof-of-stake (PoS) blockchains to help secure smaller ones, conferring benefits to the industry as a whole.< /p>
Opinion
Bitcoin's genesis in 2009 will likely go down in history as one of the most remarkable technology events of all time. Demonstrating the first real use case for immutable, transparent, and tamper-proof ledgers – i.e. blockchain – it established the cornerstone for the development of crypto and other blockchain-based industries.
Now, just over a decade later, these industries are thriving. The total crypto market capitalization hit an all-time high of $3 trillion at its peak in November 2021. There are already over 300 million crypto users worldwide, while forecasts suggest that figure could surpass 1 billion by December 2022. While phenomenal, this journey has only just begun.
Several factors have contributed to the success of the blockchain and cryptocurrency industry so far. Most importantly, however, this is due to some key characteristics of the underlying technology: decentralization, lack of trust, and data security, to name a few. Major blockchain networks like Bitcoin are quite robust on their own thanks to their proof-of-work (PoW) consensus mechanism. Miners located around the world secure these networks by providing "hash" or computational power. Similarly, in the Proof of Stake (PoS) consensus that Ethereum plans to adopt soon, validators secure the network by locking or “staking” digital assets.
Related: The Truth Behind the Misconceptions Holding Back Liquid Staking
However, the number of miners or validators is very important in PoW and PoS, respectively – more miners or validators means greater security. Thus, only the largest and most established blockchains can optimally benefit from conventional consensus mechanisms. On the other hand, emerging blockchains often lack the resources to fully secure their networks, regardless of their innovation potential.
Strengthening cross-chain security frameworks is a rather relevant way to address this issue. In addition, with inno...
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