One of the most anticipated releases among blockchain users is, without a doubt, Harmony (ONE). It’s a decentralized protocol that aims to solve the problem of attaining both scalability and decentralization while sacrificing either. Harmony ONE is a staking coin that focuses on the security and decentralization of its network. It also has an incentivized node program that rewards users for running nodes. This makes it a great choice for those who want to participate in Harmony ONE staking and help secure the network.
Users can access a platform that includes an ecosystem that will allow the business’s adoption across many sectors, with a concentration on data sharing, token holders support decentralized marketplaces, supply chain tracking, crypto wallet, credit rating systems, and gaming.
How Harmony ONE staking works
Harmony one staking coin focuses on the security and decentralization of its network. Harmony one’s goal is to provide a high degree of scalability without sacrificing decentralization or security. The platform plans to achieve this by using a sharded architecture and by utilizing Deep Shard Chains.
Sharding is a type of horizontal scaling that can be used to increase the speed and scalability of a blockchain platform. Sharding works by dividing the network into multiple shards, each of which can process transactions in parallel.
Deep Shard Chains are used to secure cross-shard transactions. They work by creating a direct path between two shards, allowing for the transfer of information and value between them.
Harmony one’s Proof-of-Stake consensus mechanism is designed to be energy-efficient and reduce the cost of running a node. The platform plans to use this consensus mechanism to achieve its goal of providing a high degree of scalability.
What network does Harmony ONE use?
Harmony is a blockchain that runs on an Ethereum infrastructure and features a mainnet with 2-second transaction finality and 1000 times lower costs than Ethereum. More cryptocurrencies are developing scaling solutions in response to Ethereum’s expensive gas fees, trying to unseat it as the most popular network for building DApps. Unlike many of the competitors, Harmony wallet works with Ethereum rather than competing against it.
Use Harmony ONE staking to earn rewards
Holders of Harmony ONE may enlist their tokens with existing validators through the staking explorer. You can participate in Harmony ONE staking as a delegator using your own node with a very meager minimum amount. You can Stake the tokens to a particular system of validator might be comparable to putting money into a bank account in that you delegate your Harmony tokens to the validator in order to promote decentralization, security, and performance. Individuals who stake their ONE tokens are rewarded staking rewards as part of this program.
Delegation is the most important method for people who wish to stake Harmony but don’t want to run a validator. It’s important to find a reputable node that shares your values. A delegate explorer is provided where you can see all the active nodes on the ecosystem and their status.
The received block rewards for the delegator are recorded in a separate reward balance that may be directly transferred to the account of the delegate. Staking the block rewards would result in the compounding effect of Harmony ONE staking. The extra risk reduction provided by your delegated tokens will be a part of the reason why the validator’s risks are lowered. You should carefully select validators based on historical performance indicators such as uptime and commission if you’re a delegator in order to earn staking rewards. Furthermore, you should distribute your delegations among several validators to minimize apathy and indecision when you stake Harmony one.
For validators (multiple validators)
A validator in the Harmony blockchain is a single individual or entity that staked tokens and runs validation nodes (validator client software) to authenticate blocks. A validator can choose one or more validating keys (also known as BLS keys) to sign on validated blocks.
To become a validator in Harmony, follow these steps
Step 1. Create a validator node(s) and make it fully synchronized with the most recent blockchain.
Step 2. Create a record for an on-chain validator by sending a Create transaction.
Step 3. Validate using the nodes with the BLS keys you added to your staking rewards calculator.
Many settings must be specified for your validator. It’s important to go through some of the most essential fields in more depth:
- The number of one token the validator will stake at first on their crypto wallet.
- The percentage charged by a validator in the block reward.
- bls-pubkeys: The validator will sign a BLS public key with one or many BLS public keys. The BLS key is used separately to bid for a slot and, if successful, the key is responsible for validating blocks.
Why Harmony ONE is growing in popularity with its staking rewards
There are a number of reasons why Harmony ONE staking is growing in popularity. Some of the key reasons include:
- This blockchain has a high degree of scalability, allowing for the transfer of data and value between shards.
- The platform uses an energy-efficient consensus mechanism, making it a great choice for those who want to participate in staking to earn staking rewards
- It is safe, thanks to its use of the Byzantine Fault Tolerance protocol.
- This token has an incentivized node program that rewards harmony staking users for running nodes. This makes it a great choice for those who want to participate in staking and help secure the blockchain.
- It is compatible with Ethereum, making it a great choice for those who want to build DApps.
- It is fast, thanks to its use of the FBFT consensus algorithm. Transactions are confirmed in as little as two seconds.
- It is efficient, thanks to its use of an aggregate signature to sign transactions minus the validator fee on the frontier wallet.
How much can I earn with Staking?
Staking 10000 ONE for 360 days would return 1060 additional coins in your account.
For long-term holders, Harmony ONE staking is an ideal strategy since the coin might increase its value in a couple of years, at current market prices staking 10000 ONE would return $196.
This is not financial advice, just letting you know some scenarios and how Harmony ONE staking could work. You should research more about ONE and its applications.
How can I stake ONE on Binance?
Step 1: Get a Binance Account with 10% discount here.
Step 2: Fund your Account to Buy ONE or Deposit your tokens.
Step 3: Click Staking under Earn in the Menu.
Step 4: Under Locked Staking search ONE and click Stake.
Step 5: Enter the amount you wish to stake and click confirm.
Staking Harmony ONE on Crypto.com
Step 2: Buy or transfer your ONE.
Step 3: Click the icon in the middle of the bottom bar.
Step 4: Select Earn, then Start Earning now.
Step 5: Select ONE and follow the instructions.
Benefits of Harmony ONE staking
- It maintains decentralization and security on the Proof-of-Stake blockchain
With sharding, which divides validators into many groups and lets them approve transactions and gain access to new blocks at the same time, Harmony believes it can scale while maintaining the decentralization and security of crypto assets on the Guarda wallet.
The Proof-of-Stake mechanism is becoming increasingly popular among blockchain networks, and Harmony has used it since the start. Because of this, nodes offer existing tokens as collateral to have a chance of being chosen at random to validate transactions in order to guarantee the stability of the ecosystem, even during the unstaking period. Several validators must check transactions for a block to be accepted. Harmony distinguishes out from the competition because its architecture and proof-of-stake consensus method allow it to produce blocks in less than two seconds.
- NFTs have big potential.
The cross-chain capabilities of the network open up some interesting possibilities for NFTs, which are secure digital art, video, and audio assets that may be transmitted on a blockchain network/exchange. Furthermore, cheaper gas costs might make the network more attractive to people looking to create NFTs, stake certain coins or exchange tokens.
- Lower gas fees
Harmony’s high TPS and use of PoS validation minimize the incidence of clogging in its network. As a result, it does not have significant gas expenses, which are now a fraction of a penny for each transaction on Harmony. This also translates to increased usage and more rewards for the average delegate.
Risks of Harmony ONE Staking
- Falling prices
The first and most obvious risk is that you may experience losses. This can happen if the prices of the cryptocurrencies you’re staking decline suddenly. For example, if you stake ONE and its price falls by 50%, you will have lost half your investment and you can’t withdraw your crypto to prevent it from happening.
- Crypto hacks and scammers
Crypto hacking is becoming more and more common by the day as technologies and strategies get sophisticated. Of course, you go to great lengths to check out the site where you’re staking cryptocurrency. Even a big crypto brand can easily disappear with your ONE coins and you can’t complain to anyone about it.
- The “lock-up” period
In staking, you lock up your coins for a certain period of time. Of course, you cannot trade the same coins during this period. Weigh your options and be sure you choose the one which can earn you more in the long run.
- Delayed rewards
Some networks take forever to release rewards. Because of that, you might have to wait a long time to re-invest your earnings, thus affecting your overall portfolio. You really need to go through networks with a fine comb to find which one is reliable.
Should you stake Harmony?
Harmony ONE is definitely a good investment, thanks to its many benefits. It has high scalability, energy-efficient consensus mechanism, and security thanks to its use of the Byzantine Fault Tolerance protocol. Furthermore, the token is growing in popularity thanks to its many features and benefits. However, investing is a highly unique experience. Do your own study and stay on top of any improvements in the Harmony ecosystem that may help it develop.