Binance’s Trust Wallet Announces Coin Staking Feature

News | April 5, 2019 By:

Trust Wallet, a mobile cryptocurrency wallet acquired by crypto exchange Binance last year, is planning to introduce a staking feature for Proof-of-Stake-based cryptocurrencies.

The majority of cryptocurrencies use either proof-of-work (PoW) or Proof-of-Stake (PoS) to validate transaction. With PoW, miners compete to verify blocks of transactions by running highly specialized and expensive processing equipment – such as ASICs – to solve complex mathematical equations. PoS is similar, but instead of using hash power to solve problems posed by a blockchain algorithm, users can actually ‘stake’ there coins as collateral and tell the blockchain “I am assisting with these blockchain transactions by putting up my coins as collateral.”

According to Trust Wallet, by staking coins, users gain the ability to vote and generate an income, which is quite similar to how someone would receive interest for holding money in a bank account or giving it to the bank to invest.

“The system offers guaranteed returns and a predictable source of income unlike the proof-of-work system where coins are rewarded through a random process with low probability,” Trust Wallet said. “Another one is that the value of your staked coins doesn’t depreciate unlike with ASICs and other mining hardware, but can only be affected by fluctuations in the current market prices. This makes proof of stake coins more environmentally friendly and more energy efficient than mining based coins.”

The company said that the staking feature will allow them to support PoS cryptocurrencies and other related assets.

“In our next iteration, tentatively planned for end of Q2 2019, we will add native support for the delegation of all users who would like to stake their tokens,” Trust Wallet said.

Trust Wallet also announced that it has enabled Tezos wallet support, which is currently among the top 20 cryptocurrencies by market cap.

“Tezos is a leading on-chain governance and PoS protocol and we are excited to work together to bring staking and delegating mechanisms to Trust Wallet mobile users, which allows everyone to be a participant in securing the network and validating transactions,” said Viktor Radchenko, Founder of Trust Wallet. “Additionally, the Tezos Commons Foundation team conducted great work on adding support for Tezos to the Trust Wallet Core, an open-source cross-platform and cross-blockchain wallet library, which made its integration possible for the Trust Wallet mobile app.”