This article was first published on OntologyNetwork - Medium
Welcome dear Ontologists to the ultimate staking guide! This article should serve as a place to find answers to all your staking questions for you to get on the road to a successful staking experience. This article is prepared by your Telegram admin & Ontology Harbinger Dumont, and should be considered as living document, so it is always up-to-date.
Part 1: Theory
1.1) What is staking?
Staking is the process of delegating your tokens to node. To put it simply, it's process where you lock your ONT tokens to earn ONG rewards. You will never lose your staked ONT tokens, because nodes do not ever hold or manage staked tokens. The only risk may be the staking lock period, which may not be suitable for active traders or short term holders. If a node operator cancels their node, your staked tokens will behave as if you had canceled your stake, and will be available to claim after the respective lock period.
1.2) What are block and consensus rounds?
A block is a fundamental part of blockchain which stores information about transactions. At Ontology, production of 1 block takes from 1 second to 30 seconds, which means, that if someone performs a transaction every second, the block will be produced every second. For comparison, production of 1 bitcoin block takes approx. 10 minutes. This shows how ultra-fast the Ontology blockchain is- it has almost instant transactions. If no transactions appear for 30 seconds, an empty block is produced to keep consensus rounds flowing while giving it finite duration. It is set that 1 consensus round consists of 60 000 blocks. Through simple calculation means consensus round duration is from 16,66 hours to 20,83 days. So the higher the traffic, the faster the rounds. Currently the average duration of a consensus ...
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OntologyNetwork - Medium