Ledger, a digital currency hardware wallet, launched a new service on its Ledger Live platform. It will allow users to earn virtual currency through staking passively. Ledger Live platform is the online portal of Ledger for cryptocurrency management.
Staking is the process in which users help in running the proof of stake blockchain network by allocating a portion of their funds as security. In return for the funds allocated, new coins are generated daily and given out as a reward. The amount of reward that a user receives is proportional to the coins staked by them. Tezos, a proof of stake cryptocurrency, having an aim to bring transparency and governance in the blockchain network, has been added by Ledger as the first coin in this service.
In a press release, the company spoke about the USP of this service that makes it different from the staking services provided by other exchanges,
Ledger offers users more control over staking: Unlike on exchanges where users are giving up their rights to choose who to delegate to, by using Ledger Live you are able to select from a wide list of validators based on your own preferences.
Validators facilitate the smooth running of the network. Ledger Live allows users staking coins the complete freedom to select validators of their choice, ensuring that the transaction process is being run by able actors and the trust of the users is not breached. By giving this freedom, Ledger has eliminated the fear that the users may have regarding the capability of validators hired by the exchange and the threat of losing funds. By making the process decentralized, Ledger is optimistic on ensuring the blockchain network remains safe.
Recently, many cryptocurrency exchanges such as Binance and Coinbase have started offering staking services. The service on behalf of the users stakes their coin and credits the rewards back on their account.