The international cryptocurrency exchange CEX.IO has become one of the exclusive platforms for staking the ZIL token.
The service allows users to make money on ZIL staking, which network operates on a proof of stake consensus. Staking is done on the CEX.IO node and is fully automated. ZIL tokens delegated by exchange users from their accounts at CEX.IO participate in staking. In a short time, 2 billion ZIL were delegated, which showed a high interest in the service.
Users can participate in ZIL staking by delegating their ZIL tokens to the CEX.IO node, which will compete with other nodes for the right to become a validator and receive the right to minify a new block and verify transactions on the Zilliqa blockchain. The entire staking process is carried out automatically: platform clients just need to buy or deposit a coin into their account, after which CEX.IO will independently support the staking of user tokens. Thus, users can receive passive income from holding ZIL on the CEX.IO exchange, which is estimated by the exchange at 17% – 19%. The coins available for staking on the CEX.IO exchange also include Tesoz, Cardano, Matic, Neo, Cosmos, Tron, Metahash, Ontology, and Polkadot.
“The main attractive factor for staking is the ability to make money from storing coins. It is logical that exchanges, which are custodians of coins for users, began to provide staking services to their customers. In the future, staking as a service will develop qualitatively, and the number of coins participating in staking will grow, ”said Sergey Smalko, product manager at CEX.IO Staking.
Unlike mining, on proof-of-stake consensus blockchains, the coins themselves replace the hashrate. By delegating coins for staking, the user helps to reach the consensus needed to process transactions correctly. The factors that affect the size of the staking reward are the number of coins delegated, their age, and randomization algorithms. The larger the number and age of coins delegated by one or another participant, the higher his reward for a new block.
“For the user, the staking process on CEX.IO looks as simple as possible – we take care of all technical aspects (delegation of coins, support of nodes, etc.). The client does not need to figure out how the process works – all his activity comes down to storing the coin in his account. Thus, staking provides a kind of passive income for coin holders simply for holding assets. The amount of remuneration usually depends on changes in the cryptocurrency rate, the amount of funds stored and the duration of their participation in staking, ”adds Sergei Smalko.
The hallmark of the Zilliqa project is the ability to increase network bandwidth as it scales. This was achieved through the implementation of sharding technology – breaking the blockchain nodes into separate shards, combining up to 600 nodes each. This solution made it possible to reduce the level of computational load on the project’s PoW network and increase the bandwidth in proportion to the increase in the number of shards in it. Also, in order to improve the resilience of its network, the Zilliqa team recently launched staking of their token. Considering the reliability and liquidity of the CEX.IO exchange, the Zilliqa team decided to choose CEX.IO as one of the few ZIL staking sites.
“As a fiat regulated exchange, we are bringing staking participation to the next level. Given the recent market developments, many exchanges have begun to pay more attention to the KYC / AML policy. We have done this from the very beginning of our existence and continue to follow the path of regulation. Accordingly, our reputation and position in the market played a role in choosing CEX.IO as one of the exclusive sites for ZIL staking, ”explains Sergey Smalko, why the choice of CEX.IO fell on the Zilliqa project.
Founded in 2013, CEX.IO is a major service provider in the crypto industry and is primarily known for its innovative cryptoasset exchange. CEX.IO is headquartered in the UK and the USA, as well as representative offices in Ukraine, Gibraltar and Cyprus. The CEX.IO exchange offers a wide range of cryptocurrencies, as well as four fiat currencies: the US dollar, the euro, the pound sterling and the Russian ruble, which gives users a unique set of trading tools among the largest cryptocurrency exchanges.
For years, the group has been working to expand its ecosystem with new solutions, including the CEX Direct B2B fiat-to-crypto exchange solution, the CEX.IO Aggregator liquidity aggregation technical solution, and Identance, an identity and compliance platform. Recently, CEX.IO began offering cryptocurrency-backed loans under the CEX.IO Loan program, as well as the CEX.IO Staking staking service. CEX.IO Broker service was launched in 2020 – margin platform
