• OKX Wallet now supports Bitcoin and BRC-20 token staking for its users.
• Staking is a process where users participate in a PoS blockchain network by holding their cryptocurrencies and receive rewards as additional tokens.
• The OKX Wallet implements the BRC-20s protocol, allowing users to stake Bitcoin and BRC-20 tokens and earn BRC-20s tokens as rewards.
What is Staking?
Staking is a way for crypto holders to earn passive income on their holdings, similar to earning interest in a traditional bank account. It involves participating in a Proof-of-Stake (PoS) blockchain network by holding and “staking” their cryptocurrencies in a wallet to support network operations such as transaction validation, security, and governance. In return, stakers receive rewards, often as additional tokens.
How Does Staking Work with Bitcoin?
Bitcoin operates on a Proof-of-Work (PoW) consensus mechanism different from the PoS mechanism where staking is typically used. Traditionally, it doesn’t support staking in the same way that PoS blockchains do; however, decentralized finance has made it possible to “stake” Bitcoin differently.
What is OKX Wallet?
OKX Wallet is an exchange that recently introduced Bitcoin and BRC-20 token staking for its users. It has implemented the BRC-20s protocol which allows users to stake both types of digital assets with ease.
How Do You Use OKX Wallet?
Users deposit their Bitcoin or BRC-20 tokens into the OKX Wallet which are then staked via the OKX Web3 DeFi aggregator thanks to the implementation of its open source BRC-20s protocol. Users then earn BRC-20s tokens as rewards for supporting network operations via staking their digital assets within the wallet.
OKX Wallet now allows users to stake Bitcoin and BRC-20 tokens through its native wallet using its own open source protocol – making it easier for crypto holders to generate passive income through cryptocurrency investments without having to purchase specialized mining equipment or go through complex mining processes normally associated with PoW systems like Bitcoin’s.