W3A PRO | Staking-As-A-Service, A New B(Tri?)illion Dollar Industry
Securing Blockchains and Capitalizing on the Future of Crypto
That’s how much value in crypto is staked to secure blockchains right now.
$75 BILLION… with a B
Last week we covered the business of blockchains, and this week we are covering the business of securing blockchains.
And let me tell you, this business is booming!
Proof-of-Stake blockchains are still very new, less than 7 years old. Yet here we are, $75 Billion in value securing blockchains across the internet.
I see no reason why this industry is not in the TRILLIONS (...with a T) of dollars in the next 5 or so years. Yeah, it’s THAT big (...and I’m that bullish lol)🤷♂️
You can see the current top 10 blockchains by staking Marketcap in the table below.
In today's report, I’m going to break down this industry to help you understand it further as well as provide insight into its potential growth, and how you can get involved and capitalize on the opportunity.
After all, we can and should ALL be supporting the security and decentralization of the technology that is giving everyone on planet Earth access to digital ownership and digital rights.
The TL;DR On Staking
For a more detailed explanation of proof-of-stake (PoS) and its comparison to proof-of-work (PoW), check out an article I wrote on the Ethereum merge here.
In short, staking is simply using the native token of a blockchain as “collateral” to run a validator. Running a validator allows you to validate transactions on a blockchain.
Ultimately, you are enabling the blockchain to produce blockspace and ensure it does so accurately and permissionlessly.
To incentivize people to stake their assets and run a validator, stakers receive a reward from the blockchain, which could come from gas fees, issuance and/or other means, such as MEV.
The more validators on a blockchain, the more decentralized the blockchain becomes.
If there was only 1 validator, it would be easy to shut down, but if there are millions around the world, it becomes practically impossible.
In this regard, it is extremely important that, over time, PoS blockchains seek to find ways to incentivize more validators to secure its network, whether that be from paying higher rewards, lowering costs to run a validator, or making it easier and more accessible for anyone to do so.
That said, as we know from last week's report, blockchains must do this in a profitable and sustainable manner.
This is why Staking-as-a-Service was born. The new “SaaS” products are focused on making staking more accessible to anyone around the world.
Before we get into Staking-as-a-Service, however, let’s get a quick lay of the land of PoS blockchains so we can all better understand the staking industry…