Bitcoin owners have typically missed out on staking opportunities available to other cryptocurrencies due to Bitcoin’s reliance on the Proof-of-Work (PoW) consensus mechanism. PoW requires miners to solve complex puzzles, demanding substantial computational power and electricity.
In contrast, Proof-of-Stake (PoS) allows users to validate transactions based on the coins they hold and stake. This method is more energy-efficient and user-friendly, enabling participants to earn yields by holding and staking their tokens.
Recent innovations are bridging this gap by introducing ways to stake Bitcoin. For example, Core Chain’s Satoshi Plus protocol enables Bitcoin staking, letting holders earn rewards while maintaining control over their assets.
The Valour Bitcoin Staking ETP taps into this advancement, providing a secure and regulated route for investors to earn staking rewards directly through Bitcoin.
Newton, CEO of DeFi Technologies, discusses the inspiration behind the Valour Bitcoin Staking ETP launch and its potential to transform the Bitcoin investment landscape.
Valour recognized the challenge with existing BTC products—lack of yield without added risk. Inspired by Core Chain’s Non-Custodial BTC Staking, Valour saw an opportunity to offer BTC with yield without introducing new risk factors.
BTC staking on Core Chain leverages Bitcoin’s native functionalities to secure the Core blockchain, ensuring security through absolute time-locks. Users lock their BTC on the Bitcoin blockchain, vote for validators on Core Chain, and earn rewards while their BTC remains locked, enhancing security without leaving the Bitcoin chain.
Compared to platforms like Celsius and BlockFi, the Valour Bitcoin Staking ETP stands out due to its regulated status, clear yield source, and non-custodial nature. Yield comes from Core Chain’s Non-Custodial BTC Staking, eliminating additional counterparty risk.
Bitcoin miners contribute to the Core Chain network by delegating hash power to elect validators, earning rewards in return. This involvement further decentralizes the network and aligns Core Chain with the Bitcoin blockchain.
Satoshi Plus refines traditional Bitcoin Proof of Work by incentivizing miners to secure the Bitcoin network and introducing staking rewards without compromising Bitcoin’s design principles.
Summary Review: The emergence of the Valour Bitcoin Staking ETP marks a significant advancement in the crypto investment landscape, offering Bitcoin holders a new avenue to generate passive income through staking rewards. By leveraging Core Chain’s innovative Non-Custodial BTC Staking protocol, investors can earn yields without compromising the security or principles of Bitcoin’s PoW consensus mechanism. This regulated and secure ETP provides a transparent and efficient means for investors to participate in Bitcoin staking, bridging the gap between traditional crypto offerings and the evolving DeFi landscape. With the potential to reshape how investors approach Bitcoin investment, the Valour Bitcoin Staking ETP represents a promising step towards democratizing access to yield-generating opportunities in the crypto space.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
