White-Label Staking And Its Uses

Staking is the practice of locking up crypto assets in order to earn a return on your investment while also helping to safeguard the blockchain. Proof-of-Stake (PoS) consensus is used by the blockchains that enable the staking procedure. In Proof-of-Stake (PoS) blockchains, when new currencies enter circulation, the staked assets expand the validator‘s holdings at the same time.

As the popularity of cryptocurrencies has grown, cryptocurrency exchanges have become critical for the sale and purchase of practically every sort of cryptocurrency. Now, exchanges account for most of the bitcoin activity. Regardless of how valuable bitcoin exchanges are, they are expensive and difficult to create. Costly mistakes can be made if the obstacles are not considered, and white-label staking is there for this.

What is White-Label Staking & How is it Used?

White-label staking is a more upscale method of staking tokens. With white-label staking, token, and crypto holders have their validator node built just for them. A third-party operator then manages everything on their behalf. This may be incredibly beneficial, particularly for IT businesses that are unfamiliar with the procedures and best practices for setting up, maintaining, and operating validator nodes. The crypto and token holders retain ownership of the nodes and assets, which is advantageous and crucial for both institutional and individual investors. Yet, there are dangers and penalties to consider for inappropriate operation and harmful behavior also.

Validators can be penalized for a proportion of their staked money via mechanisms such as slashing in white-label staking. As institutional and retail interest in staking grows, it is vital to collaborate with active validators on the network that have the necessary infrastructure for staking demands. With a minimum of 32ETH or Ether required and a penalty of more than 0.5ETH to the whole stake for each “improper” action as a validator, proper setup, and operation is therefore critical to safeguarding the value of the staked assets.

There are various white-label coin staking apps such as ChainUp, AlphaPoint, and B2Broker and white-label NFT staking marketplaces such as Binance NFT Marketplace Clone, Opensea Clone, and Enjin Clone.