Blockchain technology continues to propel its way forward, as growing intrigue gives way to adoption and usability. Even so, the technology has continued to struggle with scalability, which is a natural overflow of its burgeoning success.
Velas, a Switzerland-based blockchain project, strives to solve this problem with a high throughput capacity capable of processing 30,000 transactions per second without compromising security or decentralization.
One way that it achieves this goal is through its innovative consensus mechanism, dubbed Artificial Intuition Delegated Proof of Stake (AIDPOS), a process supported by Artificial Intuition.
Recently, Velas announced its highly secure crypto wallets that, among other things, served as a precursor to masternode implementation. Velas’ masternode program relies on staking, and, according to the platform’s technical paper, this “builds a trusted network of validators that will process and forge a block of transactions to the chain.”
In return, the program provides Velas users with an opportunity to passively generate new digital currency, while playing a critical role in the platform’s development and implementation.
Here’s what you need to know to get started.
Becoming a Velas Masternode
Becoming a Velas masternode requires minimal IT expertise, and users aren’t required to have any specialized hardware to participate. However, users do need to stake at least one million VLX, the platform’s native cryptocurrency, and this process is subject to a transaction fee of 0.01 VLX.
To achieve this process, users have two options: they can stake using the Velas wallet, or they can stake using Coinpayments, a payment processor that allows merchants to accept Bitcoin or other altcoins through APIs and POS interfaces.
Staking With A Crypto Wallet
Velas offers two wallet options that allow users to stake their VLX. First, the platform’s web wallet. Once users stake their one million VLX, the web wallet prompts users to download an operating system-acceptable Velas node. In just a few clicks, users are up and running, able to begin earning rewards that pay out approximately every four hours.
Similarly, users can choose to use the Velas desktop wallet, which supports Windows, Mac, and Linux users. Installing and maintaining desktop software is more complicated than simply using the online wallet, but it’s still attainable by most crypto users.
Staking with CoinPayments
Users without one million VLX can still take part in the Velas network as a masternode, but they will need to use Coinpayments to complete the process. Because Coinpayments has a partnership with Velas, users can do more with less. For those that don’t already work with the platform, they need to create an account, deposit VLX, and join a CPS masternode.
For non-tech savvy users, Coinpayments has a support wizard that can guide users through the process. While it’s a less-direct approach to running a masternode, it’s an easy way to participate in the program without staking such a significant sum of VLX tokens.
Should You Participate
Participating in a masternode program may be a good way to diversify your portfolio, however it is always a personal preference as well, since users need to consider their technological capabilities, crypto acquisition goals, and platform efficacy before beginning.
However, for those that do want to participate in a masternode program, Velas is a compelling option. For one, the platform is relatively new, which means that participants are getting in on the ground floor and earning cryptocurrency that can become more valuable as Velas becomes more prolific.
In addition, the platform’s rewards, estimated to reach 8% annually, are higher than those offered by other mainstream masternode programs like Dash, which expects 7% returns for its users.
In all, masternode programs are a compelling way to passively acquire freshly minted crypto, while also supporting the platforms that you care about. Undoubtedly, it’s worth examining and considering as part of your holistic crypto-acquisition strategy.