The number of blockchain projects that are implementing various mechanisms for earning passive income is currently on the rise. Among them, we find Neblio (NEBL), a blockchain projects focused on providing enterprise solutions. Neblio’s main goal is to lead the way for blockchain mass adoption in business around the world.
Neblio is also one of the blockchain projects that has a high staking rate. In fact, when Neblio came out during its ICO, the company already had a working wallet with a 10% staking/year rate. However, before understanding how to stack Neblio, one must first understand PoS.
Proof-of-Stake, or PoS for short, is an ingenious consensus algorithm. It’s used by Neblio to ensure that all members of its network are trustworthy and behave honestly. The increasing popularity of PoS algorithms is due to the fact that they are more energy efficient than their counterparts, the Proof-of-Work algorithms.
Its basic principle is quite straightforward: it requires network members to hold and stake their cryptocurrency holdings to validate transactions. The more coins a user stakes, the bigger the chances are that his or her wallet is picked to solve a specific block.
What is staking?
Neblio’s consensual algorithm works the same way, with some very small modifications. The algorithm designates a staking frontrunner at roughly 2 minutes apart. The user’s wallet validates the submitted transaction, and the user is eligible for receiving newly-created NEBL tokens. However, to receive the staking rewards, the wallet in question has to be online.
In short, staking is the process in which a designated wallet is used to validate transactions and collect the awarded coins. When a wallet is staking, it’s checking transactions to make sure that everyone who sends coins actually owns the coins. For keeping the network secure, every two minutes one online wallet is chosen to receive a stake reward. The wallet with the most “raffle tickets” wins.
Coin age, network weight, user weight, and expected time
To further understand how staking works, we also need to cover the concept of “Coin Age.” This technology has been implemented by Neblio to determine for how long specific coins have been in a wallet.
This is important in order to determine a user’s “weight.” This weight is the number submitted to the staking pool, and it represents the total number of coins a user has in addition to a bonus for the coin age.
This weight increases after a coin has been idle in a wallet for 24 hours. It continues to increase up to 7 days, after which the weight stagnates as long as the amount of coins does not change.
“The network weight” is the number of tickets available for the raffle. In short, the network weight is the sum of “weighted coin age” of all the coins which are currently staking across the network.
The term “expected time” refers to the time until the next reward. Since users own various amounts of tickets, the more tickets they have, the greater the winning chances are.
How to stake NEBL (guide)
In order to stake NEBL, you first need to add Neblio coins to your wallet. Of course, to do this, you will need a wallet which can be downloaded from Neblio’s official website. You can try one of the multiple core desktop wallets that offer a wide array of features, allowing you to send, receive, and stake NEBL securely within a novice-accessible interface. The core wallets are available for all the major OSes out there such as Windows, macOS, and Linux.
Another valid option would be to choose the Neblio Orion, one of the company’s newest wallets. It comes with support for all the modern browsers, as well as for both desktop and mobile platforms (Android and iOS).
To start staking, you will have to ensure that your wallet is open, unlocked and online. Once you got your coins, and your Neblio wallet is ready, you will have to synchronize your wallet with the blockchain. The duration of this process is in direct accordance with your device’s processing power and Internet connection. Please note that there’s no minimum amount of NEBL required to stake.
Another, very important step of the process is to encrypt your wallet. To encrypt the wallet, go to “Settings,” and secure it with the help of a password.
All that’s left to do now is to unlock your wallet, wait, and earn. A very helpful guide can be found on the Neblio subreddit. We recommend following this guide if you want your wallet to stay online all the time, as this guide is for setting up a Raspberry Pi3 as a staking device.
It’s worth keeping in mind that it will take up to at least 24 hours for your coins to be included in the staking process. Also noteworthy is the fact that your coins will reach their maximum weight and their maximum return potential only after seven days have passed.
As mentioned before, the estimated return on investment is 10% per year, a very good value especially when you compare it to Neblio’s other PoS competitors such as NavCoin (NAV), NEO (NEO), Lisk (LSK), ARK (ARK), Reddcoin (RDD), PIVX (PIVX), Bean Cash (Bean), and Stratis (STRAT), Okcash (OK), Decred (DCR), just to name a few.
We hope that you have found this article to be of interest and, as usual, we highly recommend doing your own research before starting to move funds around.